A DISSERTATION REPORT ON STRATEGIES USED TO BUILD SUCCESSFUL BRANDS ON INTERNET

SUBMITTED BY

POOJA JAIN (Reg. No - 04VWCM6060)

This dissertation report is submitted in partial fulfillment of the requirements of the MBA program of Bangalore ni!ersit" nder the guidan#e of Prof. K.K.HAVALDAR Facult All!a"c# Bu$!"#$$ Aca%#&

Alliance Business Acade !

19th cross, 7th main, N.S.Palya, BTM 2nd Sta !, Ban alor! " #$%%7$ ("004 # "006)

$%C&ARA'ION
I, POOJA JAIN( o& MB' I( SEMESTE) st*dyin diss!rtation titl!d )*'RA'%+I%* ,*%$ in 'llianc! B,I&$

B*sin!ss 'cad!my, Ban alor! do h!r!+y d!clar! that this 'O *,CC%**-,& BRAN$* ON IN'%RN%'. has +!!n ,r!,ar!d +y m!, *nd!r th! *idanc! o& P/o00esso/ 1.1.2AVA&$AR , in th! ,artial &*l&illm!nt o& th! a-ard o& M'STE) ./ BUSINESS 'DMINIST)'TI.N *nd!r Ban alor! Uni0!rsity d*rin s!ssion 2%%122%%$. I &*rth!r d!clar! that this diss!rtation r!,ort has not +!!n s*+mitt!d !arli!r to any oth!r Uni0!rsity or Instit*t! &or th! a-ard o& any D! r!! or Di,loma.

Dat!3 Plac!3 Bangalo/e

POOJA JAIN
404VWCM60605

C%R'I-ICA'%
I, P/o00esso/ 1.1.2AVA&$AR h!r!+y c!rti&y that this diss!rtation r!,ort titl!d )*'RA'%+I%* ,*%$ 'O B,I&$
*,CC%**-,& BRAN$* ON IN'%RN%'.

has

+!!n

s*cc!ss&*lly carri!d o*t +y POOJA JAIN -ith )! istration n*m+!r " 04VMCM6060 *nd!r my s*,!r0ision and *idanc!.

D'TE3 PRO-%**OR 1.1.2AVA&$AR /ac*lty 'llianc! B*sin!ss 'cad!my Ban alor!

AC1NOW&%$+%M%N'
The satiation and euphoric that accompany the successful completion of task would be incomplete without the mention of the people who made it possible. So with immense gratitude I acknowledge all those whose guidance and encouragement crowned my efforts with success. I would like to thank Prof. Sudhir G Angur, President, Alliance Business Academy, and to do this study. &ith deep sense of gratitude and indebtedness I sincerely thank Proffessor ".".'A!A( A), my dissertation guide for gi%ing me %aluable suggestions and ad%ice throughout the e$ecution of the dissertation. I would like to thank the entire faculty members of Alliance Business Academy. I would like to thank *r. )a%ikiran, (ab +o,coordinator, and Alliance Business Academy for his co, operation and support. (ast but not the least I would like to thank my parents, friends without whose co,operation this dissertation wouldn-t ha%e possible. Thanking #%eryone. P../A /AI0 r. B.!."rishnamurthy, #$ecuti%e !ice President, Alliance Business Academy for pro%iding the support

TABLE OF CONTENTS

SNo.

CHAPTER NA'E E(#cut!)# Su&&ar

PAGE No.

I. II. III. IV.

I"tro%uct!o" L!t#ratur# r#)!#+ I"%u$tr Prof!l# R#$#arc/ D#$!0" A. B. C. D. E. F. Pro1l#& Stat#&#"t R#$#arc/ Pla" Ca$# A"al $!$ Data I"t#r6r#tat!o" F!"%!"0$ of t/# $tu% R#co&&#"%at!o"$ L!&!tat!o"$

* ,* -. 2. 23 45 75 8** ,53

. V. VI.

G.

Co"clu$!o" A66#"%!( A. B. 9u#$t!o""a!r# B!1l!o0ra6/

&

LIST OF CHARTS AND TABLES

Ta1l# No. Co"t#"t Pa0# No.

Ta1l# , Ta1l# Ta1l# . Ta1l# 3 Ta1l# 2 Ta1l# 4 Ta1l# 7 Ta1l# 8 Ta1l# * Ta1l# ,5 Ta1l# ,, Ta1l# ,-

:/at ar# 6#o6l# %o!"0 o"l!"# :/o r#all carr!#% 1u$!"#$$ tra"$act!o" o" !"t#r"#t Na&# of c 1#r co&6a"!#$ ou Actuall %#al +!t/. :/o +a"t$ to co&# 1ac; for futur# tra"$act!o"$ Sta"%ar%$ for 0oo% o"l!"# Co&6a" K# $ to +#1 1ra"% lo alt K!ll#r$ of +#1 1ra"% lo alt T/!"0$ ou +a"t to 1u o"l!"#. Ra";!"0 t/# 6o6ular!t of c 1#r co&6a"!#$. Do ou r#all r#a% c/a!" or 1ul; 'a!l$. D!ff. a66roac/#$ !" Bra"% Bu!l%!"0. Eff#ct!)#"#$$ of Bra"% Bu!l%!"0 '#t/o%$.

883 82 84 87 88 8* *5 *, *** ,55

'

E<ECUTIVE SU''AR=

This dissertation report is set out to e(plore ho) the brand building is #hanging )ith the help of internet* in order to identif" the ne) sour#es of !alue* the ne) brand+building tools and strategies* and to outline the ,e" fa#tors that #ontribute to the de!elopment of a su##essful online brand- .ith po)er shifting to #ustomers* the su##ess of an online brand is largel" determined b" #ustomer #hoi#e- The repeated #hoi#e of a #ertain brand b" #ustomers and business partners generates the transa#tions and repeat business that #ounter balan#es the #osts of #ustomer a#quisition and infrastru#ture- Repeat transa#tions pro!ide the basis for a relationship that* )hen properl" #ulti!ated* #reates !alue for both the #ompan" and its #ustomers- This relationship is the basis for the #ustomer lo"alt" that #reates a su##essful online brand- The #ompanies that are su##essfull" building relationships and fostering brand lo"alt" are those that re#ognise that their brand/s per#ei!ed !alue hinges on the total end+to+end #ustomer e(perien#e* from the promises )hi#h the" made in the !alue proposition* to its deli!er" to the #ustomer- It is all about enti#ing #ustomers* gaining their trust* and ma,ing the e(perien#e so satisf"ing that the" are #onfident in their #hoi#e and )ill return again* and )ill tell others about itThe tools for building an online brand in#lude the 01s 2rame)or, and the Intera#ti!e Brand+Building Model- These frame)or,s highlight the ,e" #omponents and sour#es of added !alue for de!eloping a high qualit" e(perien#e* and the pro#ess of building a #ustomer base and nurturing brand lo"alt"- The #ase studies pro!ided a useful and pra#ti#al insight into the appli#ation of these tools- The dissertation in#ludes the ,e" fa#tors that #ontribute ho) "ou build su##essful brands b" internet-

INTRODUCTION

INTRODUCTION
G#"#ral O)#r)!#+ O!er the past fe) "ears* there has been an e(plosion in the online )orld 4 an e(plosion that is also a harbinger of ho) business )ill operate in the future- Suppl" #hains are being rethought* produ#ts and ser!i#es re#onfigured* and business models re!amped- As su#h* the Internet is ha!ing a profound impa#t on the )a" business is being #ondu#ted in )a"s that are often disrupti!e to traditional methods- This is #reating ne) #hallenges and opportunities- The Internet pro!ides the opportunit" for #ompanies to rea#h a )ider audien#e and #reate #ompelling !alue propositions ne!er before )hile pro!iding ne) tools for promotion* intera#tion and relationship building- It is empo)ering #ustomers )ith more options and more information to ma,e informed de#isions- As su#h* the Internet is #hanging fundamentals about #ustomers* relationships* ser!i#e and brands* and is triggering the need for ne) brand+building strategies and tools- In the midst of this* aggressi!e Internet start+ups ha!e emerged* #reating strong brands that are putting established brands at ris,- Internet #ompanies su#h as =a/oo>* A&a?o".co&* A&#r!ca O"l!"# 5AOL6* Goo0l# and #Ba ha!e been able to build po)erful brands in a fe) "ears* )hereas it has ta,en de#ades for traditional #ompanies to a#hie!e the #lient base* #ustomer affiliation and le!el of sales that these Internet start+ups ha!e a#hie!edAs a result* harnessing the rea#h and intera#ti!it" of the Internet to build and maintain brands has be#ome e(tremel" important- 2or pure online pla"ers* )ho are essentiall" intangible* brands are e!en more #riti#al as #ustomers ha!e little to go on other than a re#ognised brand- 7i!en the tremendous #lutter in toda"/s e +#ommer#e mar,etpla#e* and the high #ost of a#quiring online #ustomers* the most su##essful sites )ill be those that #an attra#t #ustomers and build brand lo"alt" and enthusiasm that e(tends the brand+ #ustomer relationship be"ond a single transa#tion-

A Business .ee, sur!e" found out that &09 of Internet users go to the same sites o!er and o!er again* rather than drifting from site to site- Therefore* building a)areness* attra#ting traffi# or :eyeballs1* turning bro)sers into bu"ers* and turning first+time bu"ers into lo"al repeat #ustomers has be#ome the ;ol" 7rail of online mar,eting strategies;o)e!er* as the need to build brand lo"alt" online is rea#hing a pea,* there is a gro)ing re#ognition that traditional methods are no longer suited to this ne) intera#ti!e en!ironment- The disruption of the global Dot#om industr" in the beginning of millennium* the loss of in!estors< #onfiden#e* the assailan#e from ha#,ers and #ode+ brea,ers* and the ban,rupt#" of man" start+up giants made man" pessimisti# souls belie!e at the doomsda" of the industr" in a not+too+distant future- Dot#om industr" is still a fledging and promising oneBac;0rou"% of t/# $tu% This pro=e#t has been underta,en to stud" about the strategies of brand building )ithin start+up industr"- The stud" tries to anal"se brand Mar,eting Strategies for Brand building on internet building strategies of & #"ber #ompanies* )hi#h atta#h to the su##ess and failure of ea#h and e!er" of them* there of bring out a lesson regarding ho) to build a su##essful brand on Internet- In this stud"* resear#her tries to e(tra#t to #ustomers< attitude and be)areness to)ards respe#ti!e brands* and on )hat foundation a potential #ustomer de#ides to =oin the mainstream of #"ber pur#hase* and )hi#h fa#tors #ast influen#e on his or her de#ision of bu"ingDuring the stud"* resear#her also tries to bring out the per#eptions that e+#ustomers finding )hile #arr"ing out an e+#ommer#e transa#tion- In the stud"* resear#her inter!ie)s potential e+#ustomers on #ertain signifi#ant points* su#h as basis of #ustomer* le!el of be)areness to)ards a #ertain brand name* #ustomer per#eption* le!el of transa#tion* frequen#" of e+pur#hasing monthl"* le!el of satisfa#tion and #on!enien#e* fa#tors of

>?

influen#e* et#- During the stud"* besides using his o)n mar,et resear#hing result* te(t boo,s* and referen#e materials* resear#her also #arries out his anal"sis and interpretation based on un#on!entional sour#es of information li,e #"ber referen#e materials* e+mail sur!e"* and tele+sur!e"S!0"!f!ca"c# of t/# Stu% In the past* the" #ompeted b" pri#e- At present* the" are #ompeting b" qualit"- In the future* the" )ill #ompete b" brand name- Espe#iall"* )ithin the Dot#om industr"* a )ell+ ,no)n and re#ognised brand is a s,eleton ,e" to the gate of su##ess- Building up a su##essful brand name is s"non"mous to sur!i!ing the mar,et- Online pur#hase and Brand building on the Internet are ne) business a#ti!ities* and the" ha!e a#quired a ne) dimension* )ith approa#hes totall" different from ones of the traditional industriesOnline #ompanies ha!e different #lient base- The" ma,e promotion and ad!ertisement strategies in different )a"s- The" ha!e different a##ess to brand building strategiesDigging up and s#rutini@ing the )a" ho) a start up #an build a su##essful brand name on Internet is the main purpose of this dissertation- During the last de#ade* the )orld has e"e )itnessed the fier#e )a( and )ane of the Dot#om industr"* from the fledging period of >88&* )ith the appearan#e of Ama@on and AOA* to the @enith of Dot#om industr" in >888* and the nadir of B???* )hen Boo-#om and 7oodsonline-#om #ame into ban,rupt#"* and the ne)est resurre#tion of Dot#om industr" sin#e B??B* )ith Cahoo* 7oogle and eBa"<s profit re#o!er"- Re#entl"* more than a do@en ne) #"ber #ompanies 5e-g-D Enemart-#om* firstandse#ond-#om* Fohnstar,-#om6 either promoted b" the ban,s or pri!ate industrial houses ha!e #ome into e(isten#e )ith the hope of regaining the glamorous past to the industr"During the stud"* resear#her tries to find out the potential #ustomers and #olle#t rele!ant information* as )ell as to anal"@e the information )hi#h ma" help #"ber #ompanies to formulate their brand building- Strategies in a##ordan#e )ith #ustomers< mind and per#eption therefore ma,e #ontribution to their mar,et share in#rease in the future-

>>

T/#or#t!cal Bac;0rou"%
THE NATURE OF BRANDS INTRODUCTION Brands are made up of man" la"ers and dimensions- In this #hapter* these la"ers are unra!eled to re!eal the nature of brands and their reason for e(isten#e- The #hapter pro#eeds to des#ribe the influen#e of brands on the bu"ing pro#ess* and the importan#e of #ustomer satisfa#tion and brand lo"alt"- The #on#ept of brand equit" is outlined* e(plaining the !alue of brands* both to #ustomers* and to #ompanies- These #on#epts are #entral to brands and brand+building* )hether online or offline and the" form the ba#,bone of this dissertation:HAT IS A BRAND@ A##ording to Rita 1lifton* E( 1EO of Interbrand Ne)ell and Sorrell + a leading spe#ialist brand #onsultan#" firm + a brand isD A &!(tur# of ta"0!1l# a"% !"ta"0!1l# attr!1ut#$A $ &1ol!?#% !" a tra%#&ar;A +/!c/A !f 6ro6#rl 0#"#rat#$ )alu#. This definition trul" #aptures the essen#e of a brand* and highlights the importan#e of brand management- Branding is about #reating :!alueG* both for #ustomers* and for the #ompan"- This !alue stems from the produ#ts and ser!i#es that #ompanies #reate and bring to the mar,et* but e(tends further to en#ompass added !alues deri!ed from fa#tors su#h as the brand+#ustomer relationship* the brand/s emotional benefits and its self e(pressi!e benefitsOther #ommon des#riptions of a brand in#lude + a : relationship1* a :reputation1* a :set of e$pectations1* and a :promise1- It is a #ompan"/s promise to #onsistentl" deli!er a spe#ifi# set of features* benefits* and ser!i#es to #ustomers- Brands are ri#hl" endo)ed entities- The" start life as ideas* ma,ing their )a" into planning and strateg" do#uments* "et ultimatel" reside as #onsumer per#eptions- 2or some #ompanies* brands are their most &a"a0#%A cr#at#$ !"flu#"c# a"%

>B

!aluable asset- The spa#e a brand o##upies inside a #ustomer<s head #an #reate a :mentalG patent* )hi#h gro)s out of the #umulati!e memor" and the e(perien#es #ustomers ha!e of produ#ts or ser!i#es- As su#h* brand+building is about #reating !alue through the pro!ision of a #ompelling and #onsistent #ustomer e(perien#e that satisfies #ustomers and ,eeps them #oming ba#,THE LA=ERS OF A BRAND Brands are made up of four la"ers + the #ore produ#t or ser!i#e* the basi# brand* the augmented brand and the potential brand The core Product / Service

At the most basi# le!el* #ustomers bu" produ#ts to meet #ertain fun#tional needs;o)e!er* most produ#ts and ser!i#es #annot sur!i!e on fun#tionalit" alone as this is usuall" mat#hed in time- The most #ommon barrier to #ompetition is building a brand The Basic Brand

The basi# brand #onsists of the :name, term, sign, symbol, or design, or a combination of them, intended to identify the goods and ser%ices of one seller or group of sellers and to differentiate them from those of competitors12- Essentiall"* this should support the offering/s performan#e and differentiate the brand from those of #ompetitors The Augmented Brand

Su##essful #ompanies see, a #ompetiti!e edge through the enlargement of the #ore produ#t or ser!i#e* )ith supplementar" produ#ts and ser!i#es 5e-g- information* qui#, deli!er"6 that enhan#e the #ustomer<s total pur#hasing and use e(perien#e- These produ#ts and ser!i#es add !alue and ma,e the offering mu#h more diffi#ult for #ompetitors to emulate-

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The Potential Brand

A brand a#hie!es its potential )hen added !alues are so great that #ustomers )ill not )illingl" a##ept substitutes* e!en )hen the alternati!es are substantiall" #heaper or more readil" a!ailable 5e-g- CocaBCola* N!;#* L#)!C$6PRODUCT AND SERVICE BRANDS Pro%uct 1ra"%$ are the original brand #arriers- The" are the histori#al #ore of branding be#ause the" are the most pre!alent* and be#ause the" most readil" #ome to mind )hen #onsumers are as,ed to re#all brands- 2or instan#eD 7M* No,ia* Pepsi* ;onda* et#S#r)!c# Bra"%$ 5intangible6 are mu#h less numerous than their produ#t #ounter partsIntangible ser!i#es are also more #hallenging to :pa#,ageG and sell to #onsumers )ho often ha!e diffi#ult" #on#eptuali@ing* preferring things the" #an see and tou#h1ertain ser!i#e brands* su#h as in retailing* a#tuall" sell produ#ts* but the brand itself is the store* not the produ#ts it sells + T/# Ga6 stores* Sout/+#$t A!rl!"#$ and A&a?o".co& are e(amples- In fa#t* this is the #ase )ith all Internet #ompanies* as the" essentiall" perform the fun#tion of a :!irtualG intermediar" or : infomediaryG and are intangibleE'OTIONAL LO=ALT= Emotional lo"alt" #an be brought about in t)o main )a"s- 2irstl"* emotional lo"alt" is born out of a #onsumer/s personal relationship )ith a brand- This relationship #an a#tuall" start through the satisfa#tion of a fun#tional need or e(pressi!eness 5self+image6 need- 1onsumers #ross the threshold from a mere brand relationship into emotional lo"alt" )hen the" HanimateH the brand* gi!ing quasi+human qualities and relate to it as the" )ould to humans + #onsider ho) Co;# #onsumers felt betra"ed )hen CocaB Cola de#ided to #hange their formula in >83&-

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Emotional lo"alt" #an be also #reated through the formation of a strong user #ommunit" around the brand- The #onsumer rea#hes emotional lo"alt" )hen membership in the brand<s user #ommunit" be#omes an end in itself- In this )a"* the brand be#omes a lin, for people for )hom fulfilling similar aspirations is a ma=or life theme 5e-g- Harl# B Da)!%$o" motor#"#le #lubs6Some established brands are su##essfull" de!eloping online #ommunities around them su#h as D!$"# and P#"ta( 5)here professional and aspiring photographers #an e(#hange tips and information on te#hniques and equipment6-Emotional lo"alt" leads to a deeper* almost irrepla#eable bond as )ell as potentiall" to the negati!e feelings of betra"alEmotionall" lo"al #ustomers build a sense of trust and t)o+)a" #ommitment )ith the brand* )hi#h goes )ell be"ond the satisfa#tion of a spe#ifi# need-

:/at !$ Bra"% EDu!t @

Brands !ar" in the amount of po)er and !alue the" ha!e in the mar,etpla#e- At one e(treme* there are brands that are un,no)n b" most bu"ers- Some brands ha!e a fairl" high degree of brand a)areness 5measured b" brand re#all and re#ognition6- Be"ond this* there are brands that #ustomers per#ei!e as a##eptable and )ould not resist bu"ing- A stronger brand en=o"s a high degree of brand preferen#e o!er #ompeting brands;o)e!er* a 3power brand1 tends to ha!e a high degree of brand lo"alt"* )hereb" #ustomers )ould be un)illing to substitute it )ith #ompetitors< offersA strong brand is said to ha!e high brand equit"* )hi#h is the !alue of the brand o!er and abo!e its #ommodit" !alue- A##ording to Da!id Aa,er 5>88>6* brand equit" : is a set of assets 4and liabilities5 linked to a brand-s name and symbol that adds to 4or subtracts from5 the %alue pro%ided by a product or ser%ice6G- The ma=or brand assets are brand lo"alt"* name a)areness* per#ei!ed qualit"* strong brand asso#iations* and other assets su#h as patents* trademar,s* and relationships )ith distributors and strategi# partners-

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T/# )alu#$ of 1ra"% to cu$to&#r$

A##ording to Fean+Noel Iapferer 5>88B6%* brands perform se!eral fun#tions that add !alue and #ustomer benefitsD BI%#"t!f!cat!o" + To be #learl" seen* to ma,e sense of the offer* to qui#,l" identif" sought after produ#ts +Pract!cal!t B To sa!e time and energ" through identi#al repur#hasing and lo"alt" +Guara"t## B To be sure of finding the same qualit" no matter )here or )hen "ou bu" the produ#t or ser!i#e +O6t!&!?at!o" + To be sure of bu"ing the best produ#t in the #ategor"* the best performer for a parti#ular purpose +C/aract#r!?at!o" + To ha!e #onfirmation of "our self+image or the image that "ou present to others +Co"t!"u!t + Satisfa#tion brought about through familiarit" and intima#" )ith the brand that "ou ha!e been #onsuming for "ears +H#%o"!$t!c + Satisfa#tion lin,ed to the attra#ti!eness of the brand* to its logo* to its #ommuni#ation +Et/!cal + Satisfa#tion lin,ed to the responsible beha!iour of the brand in its relationship )ith so#iet" Valu#$ +/!c/ BRAND 0!)#$ to a co&6a" . Brands #reate !alue for #ompanies* in the follo)ing )a"sD +Bra"%$A &ar;#t $/ar# a"% 6rof!t$ + T"pi#all" a brand leader obtains t)i#e the mar,et share of the number t)o brand* and the number t)o t)i#e the share of the number threeThe brand leader is the most profitable and all be"ond number t)o are unprofitable+Bra"% L#)#ra0# + The brand leader benefits from t)o main le!erage effe#tsD ;igher !olume leads to e#onomies of s#ale in de!elopment* produ#tion and mar,etingJ Premium pri#ing in#reases re!enue-

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+T/# Valu# of N!c/# Bra"%$ + Dominating a ni#he mar,et is usuall" more profitable than being fifth in a large mar,et+Bra"% Lo alt a"% B#l!#f$ + Strong brands are more attra#ti!e to in!estors- Brand lo"alt" also redu#es mar,eting #osts and enables firms to o!erride o##asional problems 5e-g- Eo/"$o" F Eo/"$o" )ith T l#"ol6+T/# Bra"% Barr!#r + Brand leaders usuall" ha!e the finan#ial strength to fend off #ompetitors- Potential #ompetitors are usuall" relu#tant to enter the mar,et if e(isting brands satisf" #ustomers- In addition* brand leaders #an e(ploit their superiorit" in the mar,et 5e-g- CocaBCola the real thingG6- +A)#"u#$ for Gro+t/ + The produ#t life #"#le appl" to produ#ts* not brands- 1ompanies #an maintain a brand )hile modif"ing the underl"ing produ#t to a##ount for ne) te#hnolog"* fashion or pre!ailing mar,et #onditions- The brand #an also be used to penetrate ne) mar,etsAll these aspe#ts ma,e branding an essential in #reating !alue through the pro!ision of a #ompelling and #onsistent offering and #ustomer e(perien#e that )ill satisf" #ustomers and ,eep them #oming ba#,- .hen a #ompan" #reates this t"pe of #ustomer preferen#e and lo"alt"* it #an build a strong mar,et share* maintain good pri#e le!els and generate strong #ash flo)s- This* in turn* dri!es up share pri#e and pro!ides the basis for future gro)th-

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LITERATURE REVIEW

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LITERATURE REVIE:
The dissertation has got insights from noted a#ademi#ians* arti#les and maga@inesBranding is pra#ti#ed from longtimeJ ho)e!er the e(tension in to internet brand building is ne) realm- Due to the #hanging d"nami#s of internet* there are no #on#rete theories that ha!e been established b" resear#hers in this field- Some of the ,e" literature has been mentioned in this #hapterStrat#0!c Bra"% 'a"a0#&#"t 1 No#l Ko6f#r#r has pro!ided !alues of rand to #ustomers- ;e has )ritten the material in an eas" format to understand the basi# #on#ept and pra#ti#e brand management in totalit"- Author is a re#ogni@ed authorit" on Brands and brand management- Being professor of mar,eting Strateg" and a#ting as an #onsultant to man" 7lobal #orporations ma,es him an good author in branding- ;e is also passionate about ad!ertising and #ommuni#ation- The boo, has influen#ed this dissertation b" pro!iding good basi#s in branding and e(tending pra#ti#al appli#ations in dissertationBu$!"#$$ Tra"$for&at!o" a"% I"for&at!o" 'a"a0#&#"t A paper written for the .ctober 2777 *arketing 1ommuni#ations #$ecuti%e International Asia Pacific +onference. By Simon Rawson I"tro%uct!o" This mar,eting paper e(amines Ino)ledge Management* 1ontent Management* 1ustomer Relationship Management and Information 1ontent Suppl" 1hain on internetThe arti#le gi!es #hara#teristi# of su##essful use of te#hnolog" and their #ommon #hara#teristi#s- The" are holisti# management* emplo"ing a range of #omplementar" te#hnolog" s"stems understand and implement #ommuni#ation about ne) pro#esses resulting in organi@ational #hange-

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K# f!"%!"0$ of Art!cl#$ Identif"ing the ,e" business goals is #riti#al- In an" ne) initiati!e must #onsider the )hole pro#ess and all influen#es that pla" upon it- Simulation and modeling #an help identif" bottlene#,sTo %o l!$t for E co&&#rc#

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All these literature re!ie) helped in understanding the branding and its strategies in different aspe#ts- The dissertation differs in ha!ing unique #ase stud" anal"sis in identif"ing the strategies- Some of the sampling has been done abroad to get more rele!ant dataPra#ti#al theories ha!e been used to anal"se ea#h #ase stud" and get uniform anal"sisThe dissertation is #ombinational result of both theor" and Pra#ti#al approa#hes gi!ing different !ie)s to the #on#erned persons-

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INDUSTRIAL PROFILE

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INDUSTR= PROFILE BUILDING A BRAND

INTRODUCTION Building a strong brand is a #omple( tas,- This part spells out the traditional brand building pro#ess* highlighting important fa#tors that #ontribute to the su##ess of ea#h step along the )a"- The ma=or #hara#teristi#s of su##essful brands are also re!ie)edOVERVIE: OF THE BRANDBBUILDING PROCESS The brand building pro#ess starts )ith the de!elopment of a strong !alue propositionOn#e this has been established* the ne(t step is to get #ustomers to tr" the brand- If the offering is de!eloped properl"* it should pro!ide a satisfa#tor" e(perien#e and lead to a )illingness to bu" again- To enti#e trial and repeat pur#hase requires triggering me#hanisms* )hi#h are #reated through ad!ertising* promotion* selling* publi# relations* and dire#t mar,eting- Through the #ombination of the stimulus of #onsistent #ommuni#ations and satisfa#tor" usage and e(perien#e* brand a)areness* #onfiden#e and brand equit" are builtTHE VALUE PROPOSITION Brand+building starts )ith a #learl" defined !alue proposition 4 a strong offer that a potential #ustomer )ould find #ompelling and interesting- In order to do this* a #ompan" must de!elop a strong understanding of )ho their potential #ustomers are* )hat the" !alue and ho) the produ#ts or ser!i#es should be optimi@ed or #onfigured to deli!er this !alue-

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1entral to this !alue proposition* a brand must deli!er a qualit" produ#t or ser!i#e that meets the fun#tional needs of #ustomers and differentiates itself from #ompetitors- In this )a"* the brand #an eli#it feelings of #onfiden#e that it is of higher qualit" than #ompetitors<- As su#h* a #ompelling !alue proposition is the #ombination of an effe#ti!e produ#t or ser!i#e 5P6* a distin#ti!e brand identit" 5I6* and added !alue 5AE6These three #hara#teristi#s are multipli#ati!e rather than additi!e + ea#h is essential.ithout a good produ#t or ser!i#e* it is impossible to build a su##essful brand- Similarl"* unless differentiation and a)areness #an be de!eloped* it )ill ne!er attra#t a strong #lient baseD!$t!"ct!)# Bra"% I%#"t!t A brand identity is the message sent out b" the brand through its name* features* !isual appearan#e* and ad!ertising- This ma" be different from the brand image* )hi#h depends on ho) the target mar,et per#ei!es the brand- A #ompan" should see, to differentiate its brand through de!eloping a distin#ti!e identit"- Fean+NoKl Iapferer 5>88B6 identified three le!els of a brand identit"& in#ludingD -The Brand Core + the fundamental or geneti# #ode of the brand* )hi#h remains fi(ed o!er time+The Brand Style + arti#ulates the brand #ore in terms of the #ulture it #on!e"s* its personalit" and its image or self+pro=e#tion+The Brand Theme + the )a" the brand #ommuni#ates through its ad!ertising* press releases* pa#,aging* et#- Themes in#lude the ph"si#al appearan#e 5logo* #olour s#heme* and !isual appearan#e6* its refle#tion 5e-g- t"pe of spo,esperson L #ustomer image used to ad!ertise the brand6* and the relationship e(pressed 5e-g- glamour* prestige* friendliness6-

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Brand themes are the most fle(ible element and )ill tend to #hange )ith fashion* st"le or #ultural differen#es from one #ountr" to anotherJ ho)e!er the brand st"le and #ore tend to be less fle(ible- The brand prism enables management to understand the brand* its strengths and opportunities- Se#ondl"* it helps in de!eloping the brand strateg" and the formulation of a distin#ti!e positioning in the mar,et- It also fa#ilitates #onsisten#" in the message being transmitted through presentation 5e-g- )ebsite design* stru#ture6* ad!ertising* belo)+the+line a#ti!ities* and through line and brand e(tensions- 2inall"* understanding the brand<s #ore and st"le helps set the perimeters of brand e(tensions + ho) far the brand #an be meaningfull" stret#hed to other produ#ts and mar,et segmentsA%%#% Valu# Added !alue is at the heart of building su##essful brands- Most bu"ing de#isions are influen#ed b" brand !alues* )hi#h are additional to those based upon real performan#eThe large number of de#isions* the pa#e of te#hni#al #hange* the number of #ompeting alternati!es and the large !ariet" of ad!ertising and selling messages* mean that bu"ers loo, for short #uts- Reputable brand names pro!ide #onfiden#e and allo) #ustomers to #ut through the ris,s and #omple(it" of #hoi#eAdded !alues also o##ur )hen brands are bought for emotional reasons to satisf" other needs besides fun#tional needs- People use brands to e(press their lifest"les* interests* !alues or )ealth- 1ustomers #hoose brands* )hi#h the" per#ei!e as meeting their needsIn toda"<s affluent so#iet"* these needs are as li,el" to be about satisf"ing self+ a#tuali@ation or esteem needs* or to gain a sense of belonging* as the" are to be about satisf"ing basi# ph"si#al and e#onomi# needs- Brand !alues deri!e from fi!e ma=or sour#esD

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+Experience o !se + if a brand pro!ides good ser!i#e o!er timeJ it a#quires added !alues of familiarit" and pro!en reliabilit"+!ser Associations + brands frequentl" a#quire an image from the t"pe of people )ho are seen as using them- Ad!ertising and sponsorship are often used to #on!e" images of prestige or su##ess b" asso#iating the brand )ith glamorous personalities or #elebrities2or instan#eD Britne" Spear and Da!id Be#,ham )ith Pepsi 1ola* or Sharu,h ,han )ith ;"undai Santro+Belie in E icacy + in man" #ases* if #ustomers ha!e faith that a brand )ill )or,* it is more li,el" to )or, effe#ti!el" for them- 2or pharma#euti#als* #osmeti#s and high+te#h produ#ts* faith in brand generates satisfa#tion in use- Beliefs in effi#a#" #an be #reated b" #omparati!e e!aluations and ran,ings from #onsumer asso#iations* industr" endorsements and ne)spaper editorials+Brand Appearance + the design* la"out and appearan#e of the brand #an #learl" affe#t preferen#e b" offering #ues to qualit"+"anu acturers# $ame and Reputation + In man" situations a strong #ompan" name 5e-g- CocaBCola* To ota* So" * H#+l#ttBPac;ar%* a"% N!;o"6 atta#hed to a ne) produ#t )ill transfer positi!e asso#iations* pro!iding #onfiden#e and in#enti!e to trialDEVELOPING THE FRA'E:ORK F CO''UNICATING THE VALUE PROPOSITION On#e the !alue proposition is #learl" defined* the #ompan" must ensure that it de!elops the appropriate stru#ture* s"stems* strateg" 5partnerships and allian#es6* s,ills* management st"le* #ulture and staff needed to support* deli!er and reinfor#e this !alue

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proposition 5see Appendi( B + The M#Iinse" 0+S 2rame)or,6- The !alue proposition must then be arti#ulated in terms of the :mar,eting mi(G + often referred to as the :%PsG 4 Produ#t features* Pri#e* Promotion and Pla#e 5distribution strateg"6- In term of ser!i#e* $ more :PsG must be atta#hedD People* Pro#ess* and Ph"si#al e!iden#e-The !alue proposition must be #ommuni#ated to enti#e #ustomers to tr" the produ#t L ser!i#e- If the offering is de!eloped properl"* it should lead to satisfa#tion and re+pur#hase- Before potential #ustomers #an bu" a produ#t L ser!i#e* the" must learn about itThis learning is #alled the adoption process8. Adoption pro#ess The Inno!ation+Adoption Model #onsists ofD +Awareness + The 1ompan" has to #reate a)areness of the brand* and its produ#ts L ser!i#es- Ad!ertising and PR are #ommon tools for a#hie!ing a)areness+%nterest + 1ustomers need to be stimulated to see, information about the brand<s uses* features and ad!antages+Evaluation + 1ustomers #onsider )hether the produ#t L ser!i#e )ill meet their parti#ular needs- Personal sour#es su#h as )ord+of+mouth from friends* #olleagues and opinion leaders be#ome important influen#es at this stage+Trial + The #ustomer tries the produ#t L ser!i#e for the first time and de#ides )hether to adopt it based on their e$pectations* and the produ#t L ser!i#e/s percei%ed performance+Adoption + The #ustomer is satisfied and de#ides to ma,e regular use of the Produ#t L ser!i#e A+ar#"#$$ I"t#r#$t E)aluat!o" Tr!al A%o6t!o"

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Traditionall"* #ompanies ha!e used the tools of the promotions mi( + ad!ertising* dire#t mar,eting* sales promotion* personal selling and publi# relations L publi#it" + to mo!e #ustomers through the adoption pro#ess- Ad!ertising and publi# relations #an be effe#ti!e in generating a)areness and interestSales promotions and sampling are often used for en#ouraging e!aluation and trial- It is benefi#ial for #ompanies to a##elerate the adoption pro#ess before #ompetitors emulate the benefits the" offer- Enti#ing #ustomers to repur#hase and adopt the brand not onl" requires a su##essful trial e(perien#e* but enhan#ed #ustomer intera#tion through relationship buildingBUILDING CUSTO'ER RELATIONSHIPS Building relationships )ith #ustomers e(tends be"ond a single transa#tion- This is often referred to as +ustomer )elationship *anagement 4+)*5- This fo#uses on establishing a long+term* multi+transa#tion relationship* )hen ea#h trusts the other to deal fairl" and reliabl"- O!er time* this pro#ess enables an e(#hange of information* pro!iding insight into #ustomers< needs and )ants- This information is a ,e" #ompetiti!e ad!antage* allo)ing #ompanies to #ommuni#ate regularl" )ith their #ustomers and #ustomi@e their intera#tion- In this )a"* #ompanies #an in#rease bu"ers/ satisfa#tion* ma,ing them less li,el" to s)it#h to a #ompetitor- 1ustomer ser!i#e is an important element of this relationship- Berr" and Parasuraman 5>88>6 identified three #ustomer relationship building +&inancial Bene its + su#h as airline frequent fl"er programmes* M lo"alt" L dis#ount #ards+Social Bene its + b" learning #ustomers/ indi!idual needs and )ants and indi!iduali@ing and #ustomi@ing ser!i#e and #onta#t )ith the #ustomer+Structural Ties + for e(ample* the #ompan" ma" suppl" #ustomers )ith spe#ial equipment or tools 5e-g- Internet lin,ages* soft)are6 to help #ustomers intera#t )ith the

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#ompan"- Through building relationships )ith #ustomers* #ompanies #an in#rease the !alue of ea#h #ustomer* )hile strengthening the position and !alue of the brand-

CHARACTERISTICS OF SUCCESSFUL BRANDS Se!eral fa#tors #ontributing to the su##ess of brands ha!e been Identified* in#ludingD + 'uality Product / Service Experience + Satisfa#tor" e(perien#e is the ma=or determinant of brand !alues- If the qualit" of the e(perien#e deteriorates* or if the brand is surpassed b" superior offers from #ompetitors* then its position )ill be undermined+&irst-"over Advantage + Being first into the mar,et does not ne#essaril" bring su##ess* but it ma,es the tas, easier- It is easier to #apture a share of the #onsumer/s mind and build a #ustomer base* )hen the brand has no #ompetitors to ri!al its position+!ni(ue Positioning Concept + If the brand is not the inno!ator* it must ha!e a unique positioning #on#ept + a segmentation s#heme* !alue proposition or augmented brand* )hi#h )ill add !alue and distinguish it from #ompetition+Strong Communications Programme + A su##essful brand requires an effe#ti!e selling* ad!ertising or promotional #ampaign* )hi#h )ill #ommuni#ate the brand/s e(isten#e* its fun#tion and ps"#hologi#al !alues* trigger trial and reinfor#e #ommitment to it- .ithout building a)areness* #omprehension and intention to bu"* the brand is meaningless+Time and Consistency + Rome )as not built in a da"- So is a brand name- It often ta,es "ears for a brand to build up the added !alues* and establish a trusting relationshipBuilding strong brands stems from the #reation of a #ompelling !alue proposition- On#e

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the frame)or, has been established and the organi@ation #onfigured to pro!ide this proposition* #ompanies must a#ti!el" #ommuni#ate it to the target audien#e to enti#e trial-

THE INTERNET INTRODUCTION The Internet is transforming the business en!ironment* #reating ne) #hallenges and opportunities- This #hapter pro!ides an o!er!ie) of the Internet and its defining #hara#teristi#s* highlighting the ,e" de!elopments that ha!e #ontributed to its e(plosi!e gro)th and its impa#t on the business en!ironmentOVERVIE: OF THE INTERNET The Internet is a )orld+)ide net)or, of net)or,s- In essen#e* it is a #ommon te#hnolog" platform that allo)s #omputing de!i#es to #ommuni#ate )ith ea#h other- In doing so* it offers a number of alternati!e #hannels that enable businesses and people to #ommuni#ate- The three #ore #hannels in#lude e+mail 5the most #ommon6* ne)s groups and mailing lists* and the :)orld )ide )ebG 5)))6-The .orld .ide .eb 5)))6 is a large net)or, of do#uments* )hi#h #ontain h"perte(t and pi#tures* and pro!ides the opportunit" for d"nami# intera#tion- ;"perte(t allo)s information to be organised in a user friendl" )a" that is easil" a##essible- Information is be#oming a ma=or part of the produ#ts and ser!i#es that people bu"* and a #riti#al sour#e of added !alue-

T/# D#f!"!"0 C/aract#r!$t!c$ of t/# I"t#r"#t

The distin#ti!e #hara#teristi#s of the Internet #an be summari@ed in three ,e" pointsD B%t dramatically Reduces %n ormation Costs + the #ost of sear#hing for information and the #ost of the information itself is signifi#antl" redu#ed 5and in man" #ases is free6-

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B%t Allows or Two-way Communication and %nteractivity + this radi#all" alters the pro#ess of intera#tion bet)een #ommuni#ating parties* allo)ing both parties to identif" ea#h other and build one+to+one relationships 4 not pre!iousl" a!ailable )ith mass medium forms of #ommuni#ationB%t )vercomes the Barriers o Time and Space + The Internet is a global net)or, and #an be rea#hed from e!er")here* regardless of )here the #omputer or Internet a##ess de!i#e is ph"si#all" lo#atedThe Internet #an also be a##essed at an" time + B% hours a da"* 0 da"s a )ee,- These qualities eliminate the barriers of time and spa#e that e(ist in the ph"si#al )orldThese #hara#teristi#s #ombine to #reate a !er" po)erful medium- B" allo)ing for dire#t* ubiquitous lin,s to an"one* an")here* the Internet lets indi!iduals and #ompanies build intera#ti!e relationships )ith #ustomers and suppliers* and deli!er ne) produ#ts and ser!i#es at lo) #ost- These defining #hara#teristi#s ha!e fuelled its e(plosi!e gro)th-

THE GRO:TH OF THE INTERNET

The origins of the Internet date ba#, to >8'8* )hen the nited States Defense Department de!eloped the :ArpanetG* )hi#h )as intended to lin, militar" net)or,s together- The gro)th of personal #omputing te#hnolog" in the >83?s* largel" #ontributed to the a##elerated adoption of the Internet and the )orld+)ide )eb 5)))6 )hi#h far outstrips that of pre!ious te#hnologiesThe number of Internet users is #onstantl" in#reasing- B" B???* there are $0& million Internet users )orld+)ide* and b" B??B the figure is &?? million- This boom has been the result of se!eral underl"ing for#es that ha!e #ome togetherD The )ider a!ailabilit" of the Internet* offering ine(pensi!e band)idthEasier a##ess to these net)or,s pro!ided b" point+and+#li#, )eb bro)sersMultimedia de!elopment tools that #an be used to #reate ri#h #ontent-

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The emergen#e of open standards in de!elopment tools and at the net)or, proto#ol le!el 5e-g- T1PLIP6* ma,ing it more #ost effe#ti!e for soft)are de!elopers and other te#hnolog" pro!iders to #reate interoperable produ#ts-

The gro)th in support ser!i#es 5e-g- )eb design* hosting* and gate)a" ser!i#es6The de!elopment of #riti#al pro#esses 5ordering* billing* pa"ment* et#-6- The most important fa#tor has been that users are be#oming a##ustomed to the Internet and are rapidl" o!er#oming an" inhibitions #on#erning e+#ommer#e- The momentum #reated b" all these for#es has #reated a !irtuous #"#le of gro)th-

A stud" b" the Stanford Institute for the Nuantitati!e Stud" of So#iet" 5B???6* re!eals the )ide range of areas )here people are embra#ing the Internet + from #ommuni#ating 58?9 use e+mail6 and sour#ing information* to intera#ting 5e-g- #hat rooms* entertainment6 and pur#hasing 5$096- These a#ti!ities highlight the adoption of the Internet as an intera#ti!e* #ommuni#ation and information tool-

THE INTERNET AND EBCO''ERCE

E+#ommer#e des#ribes the use of the Internet as a medium and as a mar,et for #ommer#eThe main differen#e bet)een the Internet and other ele#troni# media 5i-e- fa(* telephone6 is that the Internet goes be"ond =ust enabling transa#tions- The Internet be#omes an information+ri#h :!irtualG mar,et spa#e through )hi#h bu"ers and sellers intera#t- These /!irtual/ mar,etpla#es are not fi(ed in ph"si#al territor" but are #reated b" the #ombination of standards+based net)or,s* )eb bro)sers* soft)are* #ontent* and people1ondu#ting business o!er the Internet 5e,business6 represents a fundamental shift in ho) bu"ers and sellers intera#t- The bu"er and seller :fa#eG ea#h other through an ele#troni# #onne#tion- There is no nee d to tra!el to a ph"si#al lo#ation* no order boo,* and no #ash register- Instead there is a )ebsite- The !alue of e+#ommer#e transa#tions and mar,et fore#asts !ar" )idel" among resear#h firms and go!ernment agen#ies- ;o)e!er* the" all pro=e#t the !alue e+#ommer#e transa#tions to gro) at unpre#edented rates-

I"t#r"#t U$a0# Stat!$t!c$

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2or e(ampleD There are 0 ne) people added on the Internet e!er" se#ondE!er" %th person online is bu"ing something right no)Minimum One billion dollars in e+#ommer#e transa#tions )ill be #ondu#ted e!er" monthO!er three trillion dollars in e+#ommer#e business )ill be generated this "ear> out of 3 dollars spent b" #onsumers is spent on online transa#tions-

4Source9 A++:TIPS.com, ecember 27765 2urthermore* a##ording to glrea#h-#om* there )ere '%8 million Internet users online )orld)ide in Mar#h B??$+++a >% per#ent in#rease in =ust one "earO That #omes out to be about 33 million ne) users in that "ear alone- There #an be no question that the Internet is #ontinuing to gro) at an ama@ing pa#e- .hile the fa#t that so man" #onsumers are online is important* it is e!en more #ru#ial to understand what these #onsumers are doing )hile online- The t)o most outstanding reasons people use the Internet is to #ommuni#ate 5e+mail6 and to resear#h 5using sear#h engines6-

THE I'PACT OF THE INTERNET ON BUSINESS

The Internet has had a profound impa#t on the )a" business is being #ondu#ted + ho) #ompanies operate* ho) the" #ompete and ho) the" ser!e their #ustomers + and re!olutionar" ne) business models are emerging* )hi#h are often disrupti!e to traditional business models- Although the parti#ular impa#t )ill differ bet)een industries* a number of s)eeping impa#ts are identifiableD T/# D#)#lo6&#"t of El#ctro"!c I"t#r&#%!at!o" The Internet is enabling #ompanies to brea, through organi@ational and geographi# boundaries to #reate ne) stru#tures that lin, businesses :!irtuall"G 5ele#troni#all"6 )ith #ustomers* suppliers* partners and other #orporate #onstituen#ies- B" allo)ing #ustomers to tal, ,no)ledgeabl" and dire#tl" to suppliers* the Internet is sidelining the role of man" traditional intermediaries* and transforming traditional distribution #hannels- This is

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threatening to undermine man" old established brands- At the same time* the e(plosion of information is pla#ing a premium on s,illed information management- Ne) brands and business models are emerging to sei@e this opportunit"* some of )hi#h loo, set to be#ome the super*rands of the future 5e-g- =a/ooO Goo0l#6I&6ro)#% Cor# Bu$!"#$$ Proc#$$#$ The use of Internet+based te#hnologies as the platform* o!er )hi#h the organi@ation<s pro#esses flo)* represents a le!el of effi#ien#" and integration pre!iousl" unattainable2or e(ample* CISCO e,enabled its finan#ial s"stems and no) has the #apabilit" to #lose its finan#ial "ear )ithin one da"- Additionall"* the Internet pro!ides the opportunit" for #ompanies to integrate )ith their suppliers and #ustomers in real+time and #reate pre!iousl" una#hie!able s"nergies at a !er" lo) #ost- Impro!ed business pro#esses and :!irtual integrationG ha!e allo)ed #ompanies to mo!e from :ma,e +to+sellG to :ma,e +to+ orderG modes of operation 5e-g- D#ll Co&6ut#r$6T/# Bala"c# of Po+#r !$ $/!ft!"0 to t/# Cu$to&#r The Internet empo)ers #ustomers* as the" ha!e a##ess to more information leading to more informed de#ision+ma,ing- It also pro!ides eas" a##ess to #ompetitors< offers and allo)s #ustomers to #onsider e!er" a!ailable alternati!e- As a result* s)it#hing #osts are mu#h lo)er- A##ording to 7eorge 1olon"* 1EO of 2orrester Resear#h* these ne) highl" informed #ustomers are :empowered fruit flies1, )ith no time* little lo"alt"* qui#, e!olution and all the po)er- The" #an mo!e from one supplier to another sear#hing for the best pri#es* highest #on!enien#e and qui#,est satisfa#tion- 1ustomers ha!e more options than e!er before + the" #an #hoose bet)een traditional :bri#,s +and+mortarG #ompanies* online stores* or #atalogues- This is for#ing #ompanies to be#ome fle(ible and responsi!e to #ustomer needs* ensuring the deli!er" of a satisf"ing #ustomer e(perien#eI"t#"$!f!#% Co&6#t!t!o" Although the Internet remo!es the geographi#al #onstraints of rea#hing #ustomers* it also remo!es the geographi#al prote#tion from #ompetitors* as the" are =ust one /#li#,/ a)a"-

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This* #ombined )ith the emergen#e of ele#troni# intermediaries* the diminishing barriers+ to+entr" and the lo)er s)it#hing #osts* has resulted in a fier#e #ompetiti!e en!ironmentK"o+l#%0# !$ 1#co&!"0 a K# Strat#0!c A$$#t Man" #ompanies ha!e re#ognised that if the" )ant to su##eed* their organi@ations must harness ,no)ledge + internall" and e(ternall" 4 in de!eloping produ#ts* impro!ing pro#esses* getting #loser to #ustomers and ultimatel" sta"ing ahead of #ompetitors-

Internet te#hnolog" #an be used to e(ploit #olle#ti!e learning and ,no)ledge* allo)ing emplo"ees to share ,no)ledge* #ollaborate more effe#ti!el" and ultimatel" embed organi@ational intelligen#e )ithin pro#esses* produ#ts and ser!i#esT/# Pac# of Bu$!"#$$ !$ Acc#l#rat!"0 .ith the fast pa#e of te#hnologi#al #hange* the globali@ation of business* fier#e #ompetition* empo)ered #ustomers* the de!elopment of a ,no)ledge e#onom"* and the B% ( 0 en!ironment* the t"pi#al #lo#,+speed at )hi#h #ompanies need to operate has a##elerated- No) #ompanies need to mo!e at warp,speed* to #apture ne) opportunities* #ommit and deplo" resour#es* #onstantl" inno!ate* respond to #ompetiti!e and mar,et d"nami#s* and reorgani@e as appropriateR#)olut!o"!?!"0 Sal#$ a"% Bra"% 'a"a0#&#"t The Internet pro!ides #ompanies )ith a ne) #hannel to rea#h a ne) breed of #ustomerEnhan#ed #ommuni#ation #apabilities allo) #ompanies to build one+to+one relationships )ith their #ustomers and suppliers that )ere pre!iousl" impossible- It allo)s #ompanies to impro!e #ustomer ser!i#e* a#hie!e global rea#h and reali@e a ne) sour#e of #ost ad!antage- As su#h* it pro!ides the opportunit" to rea#h #ustomers )here the" )ant* )hen the" )ant ho) the" )ant and )ith the le!els of #ustomer ser!i#e the" demandN#+ :a $ of Or0a"!?!"0 a"% Structur!"0 Bu$!"#$$

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Transformed #ommuni#ations #osts and #apabilities are helping to dri!e a fundamental rethin, of ho) firms should organise themsel!es- E(amples of emerging information age business stru#tures in#lude flat !ersus hierar#hi#al* e(tensi!e outsour#ing* suppl" #hain #ooperation* and multiple strategi# allian#es and partnershipsThe opportunit" of lin,ing the #omplete suppl" #hain /!irtuall"/* #ombeidn )ith intense #ompetiti!e pressures* and the need for speed and fle(ibilit" ha!e a##elerated the unbundling of business s"stems-

In#reasingl"* #ompanies are fo#using on the part of the !alue #hain that is most !alued b" #ustomers or )here their #ompan" has a #ore #ompeten#e* and partnering up )ith the best for the remaining a#ti!ities- In this )a"* #ompanies #an pro!ide #ustomers )ith a strong !alue proposition b" offering them the best in qualit"* !ariet"* information* ad!i#e and #on!enien#eT/# Strat#0!c I&6orta"c# of All!a"c#$ a"% Part"#r$/!6$ Although this point has alread" been tou#hed upon* allian#es and partnerships ha!e ta,en on a ne) le!el of strategi# importan#e- Traditionall"* #ompanies ha!e loo,ed upon allian#es onl" as a means of filling gaps* and most traditional partnerships )ere !erti#al* lin,ing #ompanies )ith suppliers and #ustomers up and do)n a pre+defined !alue #hain;o)e!er* most Internet and e+#ommer#e partnerships e(tend be"ond this* lin,ing #ompanies )ith #ompetitors and pla"ers from entirel" different industries and business se#tors* thus #reating a : %alue net1 - The e(tent of this partnering highlights the t"pi#al stru#ture and d"nami#s of an online #ompan"- In an attempt to pro!ide a ri#h #ustomer e(perien#e* man" online #ompanies are blending together the produ#ts and ser!i#es of a )ide range of #ompanies- This pro!ides #ustomers )ith added !alue* )hile ma,ing the offering hard to dupli#ate off+line- Partnering )ith portals and affiliate )eb sites is important in dri!ing traffi# to a )eb site- Rapid and e(tensi!e partnering is also an effe#ti!e )a" to a#hie!e the first+mo!er ad!antage that #an pro!e essential to)ards establishing a #ompetiti!e ad!antage-

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F!"%!"0$ The Internet and its strategi# impa#t are not te#hnologi#al issues + the" are business issues- The Internet is transforming e!er" business to some degree- Ne) opportunities for effi#ien#" and #o+ordination are emerging* #ompetition is intensif"ing* the pa#e of business is a##elerating and po)er is shifting to the #ustomerAs su#h* it is transforming the #ompetiti!e lands#ape and brand+building en!ironment* )hile triggering the emergen#e of ne) brand building strategies* tools and opportunities-

BUILDING BRANDS ON THE INTERNET

INTRODUCTION The Internet is #hanging the brand en!ironment or : brand scape1 - This #hapter e(plores the ne) d"nami#s of brands and the #riti#al importan#e of #ustomer lo"alt" online- Ne) strategies and tools for building brands on the Internet are identified* in#luding the intera#ti!e approa#h to attra#ting #ustomers and building lo"alt"- The limitations of brand+building on the Internet are also dis#ussedR#a$o"$ for Pr#$#"c# o" !"t#r"#t A. To E$ta1l!$/ a" O"l!"# Pr#$#"c# B" B??'* )orld)ide e#ommer#e re!enues are e(pe#ted to total P% trillion dollars- No matter )hat business #ompan" is in* the" #an/t ignore % trillion dollars business opportunit"- To be a part of that #ommunit" and sho) that the" are interested in ser!ing them* #ompanies need to be on the ... or else #ompetitors )illB. To N#t+or; A lot of )hat passes for business is simpl" nothing more than ma,ing #onne#tions )ith other people- E!er" su##essful business person ,no)s* it/s not )hat "ou ,no)* it/s )ho "ou ,no)- Passing out business #ard is part of e!er" meeting and e!er" person #an tell more than one stor" of ho) a #han#e meeting turned into the big deal- Internet gi!es "ou an opportunit" to pass on #ompanies< business #ard to thousands* ma"be millions of

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potential #lients and partners- These ser!i#es are pro!ided B% hours a da"* ine(pensi!el" and simpl"* on the ...- The #ompan" is no) a !irtual lo#ation )here people #an find an"timeC. To 'a;# I"for&at!o" A)a!la1l# .hat are "our hoursQ .hat do "ou doQ ;o) #an someone #onta#t "ouQ .hat methods of pa"ment do "ou ta,eQ .here are "ou lo#atedQ .hat is toda"/s spe#ialQ Ne(t )ee,/s promotion information- The #ustomer is informed of e!er" reason )h" the" should do business )ith #ompan"* leading to more businessD. To S#r)# Cu$to&#r$ Ma,ing business information a!ailable is one of the most important )a"s to ser!e #ustomers- But if )e loo, at ser!ing the #ustomer* )e/ll find e!en more )a"s to use ... te#hnolog"- Allo) #ustomer to sear#h for e(a#tl" )hat the" )ant )ithout hunting through the store* the" #an find #olors* si@es and more )ithout the help of a sales agent* its all right there at their fingertips- All this #an be done* simpl"* qui#,l" and ine(pensi!el"* on the ...E. To I"cr#a$# Pu1l!c I"t#r#$t .ith .eb page information* an"bod" an")here )ho #an a##ess the .eb and hears about is a potential !isitor to .eb site and a potential #ustomer for our information thereF. To S#ll T/!"0$ Man" people thin, that this is the number > thing to do )ith the .orld .ide .eb* but here it is not- To ma,e it #lear )e should #onsider selling things on the Internet and the .orld .ide .eb after )e ha!e done all the things abo!e and ma"be e!en after doing quite a fe) more things from this list- .h"Q .ell* the ans)er is #omple( but the best )a" to put it is* do )e #onsider the telephone the best pla#e to sell thingsQ Probabl" not.e probabl" #onsider the telephone a tool that allo)s "ou to #ommuni#ate )ith our #ustomer* )hi#h in turn helps us sell things- The te#hnolog" is different* of #ourse* but before people de#ide to be#ome #ustomers* the" )ant to ,no) about #ompan"* )hat the"

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do and )hat the" #an do for #ustomers- These things #an be easil" and ine(pensi!el" done on the internet- The #ompan" should sele#t #ontemporar" te#hnolog" )ithout pa"ing mu#h for itG. To R#l#a$# T!&# S#"$!t!)# I"for&at!o" .hat if #ompanies< materials need to be released at a #ertain timeQ A #ontest )inner* a spe#ial promotion* the fall #oupon- No) the information #an be made a!ailable at midnight or an" time "ou spe#if"* )ith all related materials su#h as photographs* bios* et#- released at e(a#tl" the same timeImagine the anti#ipation of HAll materials )ill be made a!ailable on our .eb site at >BD?> AMH- The s#oop goes to those that )ait for the information to be posted* not the one )ho releases "our information earl"H. To 'a;# Sa&6l#$ A)a!la1l# .hat if #ompanies )idget is great* but people )ould reall" lo!e it if the" #ould see it in a#tionQ The album is great but )ith no airpla"* nobod" ,no)s that it sounds greatQ A pi#ture is )orth a thousand )ords* but "ou don/t ha!e the spa#e for a thousand )ordsQ The ... allo)s #ompan" to add sound* pi#tures and short mo!ie files to #ompan"<s info if that )ill ser!e its potential #ustomers- No bro#hure )ill do that- Cou #ould potentiall" send out samples but the #ost to do that )ould be o!er)helming for a small businessI. To R#ac/ a H!0/l D#$!ra1l# D#&o0ra6/!c The demographi# of the ... user is probabl" the highest mass+mar,et demographi# a!ailablesuall" #ollege+edu#ated or being #ollege edu#ated* ma,ing a high salar" or soon to ma,e a high salar"* it/s no )onder that .ired maga@ine* the maga@ine of #hoi#e to the Internet #ommunit"* has no problem getting Ae(us and other high+end mar,eter/s ad!ertising- E!en )ith the addition of the #ommer#ial online #ommunit"* the demographi# )ill remain high for man" "ears to #ome-

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E. To A"$+#r Fr#Du#"tl A$;#% 9u#$t!o"$ The organi@ations time is usuall" spent ans)ering the same questions o!er and o!er again- These are the questions #ustomers and potential #ustomers )ant to ,no) the ans)er to before the" deal )ith #ompan"- B" posting them on a ... page )ill remo!e another barrier to doing business )ith #ompan" and frees up some time for that harried phone operator-

K. To O6#" I"t#r"at!o"al 'ar;#t$ .ith a .eb page* #ompan" #an open up a dialogue )ith international mar,ets as easil" as )ith the #ompan" a#ross the street- As a matter+of+fa#t* before it goes onto the .eb* it should de#ide ho) the" )ant to handle the international business that )ill #ome their )a"* be#ause the postings are #ertain to bring international opportunities * )hether it )as part of plan or not- Another added benefitJ if #ompan" has offi#es o!erseas* the" #an a##ess the home offi#es information for the pri#e of a lo#al phone #allL. To Cr#at# a -3BHour S#r)!c# .e/re not all on the same s#hedule- Business is )orld)ide but offi#e hours aren/t- Tr"ing to rea#h Asia or Europe is e!en more frustrating- But .eb pages ser!e the #lient* #ustomer and partner B% hours a da"* se!en da"s a )ee,- No o!ertime either- It #an #ustomi@e information to mat#h needs and #olle#t important information that )ill put "ou ahead of the #ompetition* e!en before the" get into the offi#e'. To K##6 U6%at#% I"for&at!o" A)a!la1l# 9u!c;l . Sometimes* information #hanges before it gets off the press- No) "ou ha!e a pile of e(pensi!e* )orthless paper- Ele#troni# publishing #hanges )ith "our needs- No paper* no in,* no printer/s bill- Cou #an e!en atta#h "our .eb page to a database )hi#h #ustomi@es the page/s output to a database "ou #an #hange as man" times in a da" as "ou need- No

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printed pie#e #an mat#h that fle(ibilit"- Its an instant online full #olor #atalog that is updated in real+timeN. To T#$t 'ar;#t N#+ S#r)!c#$ a"% Pro%uct$ Tied into the reason abo!e* )e all ,no) the #ost of rolling out a ne) produ#tAd!ertising* ad!ertising* ad!ertising* PR and ad!ertising- E(pensi!e* e(pensi!e* e(pensi!e- On#e "ou ha!e been on the .eb and ,no) )hat to e(pe#t from those )ho are seeing "our page* the" are the least e(pensi!e mar,et for "ou to rea#h- The" )ill also let "ou ,no) )hat the" thin, of "our produ#t faster* easier and mu#h less e(pensi!el" than an" other mar,et "ou ma" rea#h- 2or the #ost of a page or t)o of .eb programming* "ou #an ha!e a #r"stal ball into )here to position "our produ#t or ser!i#e in the mar,etpla#eAma@ingO. To R#ac/ a S6#c!al!?#% 'ar;#t Sell fish tan,s* art reprodu#tions* and fl"ing lessonsQ Cou ma" thin, that the Internet is not a good pla#e to be- .ell* thin, again- The Internet isn/t =ust #omputer gee,s an"more.ith the millions of the ... users* e!en the most spe#ifi#all" defined interest group )ill be represented in large numbers- Sin#e the .eb has se!eral !er" good sear#h programs* "our interest group )ill be able to find "ou* or "our #ompetitorsP. To S#r)# =our Local 'ar;#t .here!er "ou are lo#ated there is probabl" enough lo#al #ustomers )ith .eb a##ess to ma,e it )orth "our )hile to #onsider .eb mar,eting- Some lo#al restaurants e!en ta,e reser!ations on the )eb or internet orderO Cou #an ma,e the .eb a #ost+effe#ti!e retail lo#ation no matter )here "our mar,et isTHE NE: D=NA'ICS OF BRANDS Traditionall"* in addition to pro!iding added !alue* brands )ere a substitute for information + a )a" for #onsumers to simplif" the time #onsuming pro#ess of sear#h and #omparison before de#iding )hat to bu"- ;o)e!er* the Internet ma,es sear#h and #omparison mu#h easier- This threatens to undermine the !alue of brands- On the other

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hand* the logi# of the Internet #uts another )a"- Transa#tions on the Internet require #ustomers to pro!ide detailed personal information + names* addresses* #redit #ard numbers* et#- 7enerall"* people ha!e #on#erns about sharing personal information- In addition* the intangible nature of the Internet* and the fa#t that #ustomers are bu"ing goods that* in most #ases* the" ha!e ne!er handled or seen 5e(#ept ons#reen6* has pla#ed greater importan#e on trust and security- People onl" tend to transa#t )ith sites the" ,no) and trust + sites that pro!ide a )ealth of information and ma,e #omparison shopping eas"* )here the user feels a part of* and sites that understand the user/s needs and preferen#es-

This highlights the surfa#ing of in ormation and relationships as ,e" sour#es of added !alue in the Internet e#onom"- 1ustomers deri!e added !alue through the pro!ision of information on the produ#ts or ser!i#es the" bu"* as )ell as on topi#s of interest related to the brand and produ#t #hara#teristi#s- Traditionall"* brands ha!e been de!eloped in an en!ironment )hereb" a #ompan" #reates a brand* and pro=e#ts it onto a third part" intermediar" 5the media6- In response* man" unnamed #ustomers de!elop a :relationshipG )ith the brandTHE I'PORTANCE OF ONLINE CUSTO'ER LO=ALT= A##ording to a re#ent stud"3* 0&9 of senior e(e#uti!es belie!e the su##ess of an e+ business initiati!e depends entirel" on its abilit" to build #ustomer lo"alt"- In fa#t* it #ould be argued that #ustomer lo"alt" is e!en more #riti#al online- This !ie) is reinfor#ed b" in+depth studies #arried out b" Bain M 1o- 5B???6 )hi#h identified the follo)ing fa#torsD + 1ompanies )ill not brea,+e!en on one+time shoppers + often* #ustomer a#quisition #osts are high* and to re#o!er their in!estment* #ompanies need to retain #ustomers so that the" return to the site repeatedl"- Man" e+retailers 5 ;e,tailers;6 are a!eraging more than P>?? to a#quire a ne) #ustomer* and some are spending o!er P&??- Therefore* it is !er" unli,el"

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that an online retailer #an brea, e!en on a one+time shopper* unless the" are selling high+ pri#e* high+margin items+ Repeat pur#hasers spend more and generate larger transa#tions + due to more frequent shopping and larger pur#hases+ Repeat #ustomers refer more people and bring in more business + )ord+of+mouth is the single most effe#ti!e and e#onomi#al )a" online businesses gro) their sites+ Ao"al #ustomers are more )illing to bu" other produ#ts from the #ompan"- 2or e(ample* almost 0?9 of T/# Ga6 online shoppers said that the" )ould #onsider bu"ing furniture from T/# Ga6- Repeat pur#hasing not onl" binds trust* but also pro!ides more opportunities for #ross+selling-

These points stress the importan#e of online #ustomer lo"alt"* and )ith #ustomers holding all the po)er* #ompanies must ensure that the" pro!ide a #ompletel" satisf"ing end+to+end #ustomer e(perien#e- This is further reinfor#ed b" the fa#t that* on a!erage* a disgruntled online #ustomer tells >? people about a poor e(perien#eINCREASING RETURNS ECONO'ICS F FIRSTB'OVER ADVANTAGE E#onomists ha!e traditionall" taught that businesses gro) to the point )here returns to s#ale diminish* as the benefits of s#ale are o!er)helmed b" the disad!antages of si@e;o)e!er* this is not the #ase on the Internet- On#e the up+front in!estments are made 5for resear#h and de!elopment and te#hnolog" infrastru#ture6* additional produ#ts* #ustomisation for indi!idual #ustomers* and other features #an be added or #hanged at lo) marginal #ostSimilarl"* additional #ustomers and transa#tions #an be managed )ith limited fi(ed #ost in!estment- As a result* ea#h additional unit sold does not #ost more than the last to deli!er* and in the #ase of information+based produ#ts* the #osts approa#h @ero8- E!en more important* businesses and online #ommunities that rel" on #onne#ti!it" #an en=o" : network effects1 * 5also referred to as : %iral economics1 6* )here the !alue of the

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net)or,* and the !alue that ea#h member realises* in#reases disproportionatel" as more people =oin the net)or,Nu&1#r of u$#r These #hara#teristi#s suggest there ma" be :first +mo!erG ad!antages for businesses that establish leadership positions- .ith no #ompetitors around* being first into a mar,et ma,es it easier to #apture the #onsumer/s share of mind- As the #ompan" builds a #ustomer base and de!elops a relationship )ith #ustomers* its abilit" to tra#, #ustomer preferen#es and #ustomise offerings impro!es* enhan#ing the intera#tion- This ma,es it more effi#ient in impro!ing produ#t sele#tion* #ross+selling and up+selling- It also allo)s online #ompanies to tap supplementar" re!enue streams* in#luding dire#t mar,eting* ad!ertising and referrals* deli!ering in#reased margin per #ustomerIn addition* the larger #ustomer base pro!ides online #ompanies )ith more le!erage in attra#ting and negotiating )ith ,e" #ontent* #ommer#e and distribution partners- This* in turn* pro!ides added !alue and strengthens the #ompan"/s abilit" to build #ustomer lo"alt" and instill s)it#hing #osts- An e(panding #ustomer base enables retailers to amorti@e the #ost of brand building o!er a larger base- 7i!en the #onne#ti!it" of the Internet among #ustomers* larger sites #an le!erage more #ustomer ad!o#ates to redu#e #ustomer a#quisition #osts- Aarger sites #an also negotiate better supplier dis#ounts or produ#t pla#ement feesThis sno)ball effe#t fa!ors first+mo!ers* as on#e a strong lead is established* the leader )ill pi#, up momentum and )ill stand to gain an insurmountable ad!antage + unless the leader ma,es a serious mista,e* or until a #ompetitor finds a )a" to #hange the rule of the game again- .hen a #ompan" rea#hes /#riti#al mass/* the brand begins to ta,e hold* and the #ost of s)it#hing to an alternati!e brand be#omes quite high* leading to the e(ponential e(pansion of the #ustomer base- B" the time a #ompan" has rea#hed #riti#al mass* its gro)th #ur!e relati!e to a ne) entrant is some)hat daunting- As a result* the !alue of the #ompan" rises e(ponentiall" )ith mar,et share- This is the logi# behind some of the e(traordinar" !aluations of Internet #ompanies- These fa#tors help to understand )h" man" online #ompanies are spending aggressi!el" 5up to '&9 of their

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re!enue6 on mar,eting and site de!elopment to a#quire #ustomers and build #riti#al massNe) mar,eting strategies* su#h as /!iral/ mar,eting* ha!e emerged in attempts to e(ploit the net)or, effe#t and potential e(ponential gro)th of the #ustomer baseVIRAL 'ARKETING Eiral Mar,eting is a mar,eting te#hnique that indu#es )eb sites or users to pass on a mar,eting message to other sites or users* #reating a potentiall" e(ponential gro)th 5li,e a !irus6 in the message/s !isibilit" and effe#t- It is often referred to as :)ord+of+mouthG* :#reating a bu@@G* :le!eraging the mediaG* and :net)or, mar,etingG- .ord +of+mouth is a parti#ularl" po)erful medium* as it #arries the implied endorsement from a friend-

The Internet* )ith its e+mail lists* )eb sites* #hat rooms and bulletin boards* ma,es #ommuni#ation tighter* and )ord+of+mouth e!en more effe#ti!e- As a result* !iral mar,eting is an effe#ti!e tool in getting a message out fast* )ith a minimal budget and ma(imum effe#t- Other #ompanies ha!e adopted !iral mar,eting te#hniques su#h as '!ra1!l!$ 5a#quired b" AOL6* # Grou6$ and G#oc!t!#$ 5both a#quired b" =a/oo>6G#oc!t!#$ enables people to #reate personal )ebsites for free- .hen a user builds a )ebsite* the" tell all their friends to !isit it* and in doing so spread the )ord for G#oc!t!#$- If a #ompan" #an pro!ide a strong enough in#enti!e for #ustomers to Share their lists of personal #onta#tsJ )hether for #ommuni#ations or #ommunit"* the" )ill ha!e a po)erful !iral opportunit" at their disposal- A good !irus )ill loo, for prolifi# hosts 5su#h as students6 and tie into their high frequen#" so#ial intera#tions 5su#h as e+ mail and messaging6- The #lassi# e(ample of !iral mar,eting is Hot&a!l.co&* a #ompan" no) o)ned b" '!cro$oft- Hot&a!l.co& )as one of the first free )eb+based e+mail ser!i#es* and the" #reated a subs#riber base more rapidl" than an" #ompan" in histor"Toda" the" are the largest e+mail pro!ider in the )orld )ith o!er %? million usersTheir strateg" )asD +7i!e a)a" free e+mail addresses and ser!i#es +Atta#h a simple tag at the bottom of e!er" free message sent out* sa"ingD

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+7et Cour Pri!ate* 2ree Email at httpDLL)))-hotmail-#omH +Then stand ba#, )hile people e+mail their net)or, of friends and asso#iates +These people then see the message* sign up for their o)n free e+mail* and then propel the message e!en further to their o)n e!er+in#reasing #ir#les of friends and asso#iates+Ea#h ne) user be#omes a #ompan" salesperson* and the message spreads organi#all"In its first >-& "ears* Hot&a!l a#quired o!er >B million subs#ribers- A traditional print publi#ation )ould hope to rea#h >??*??? subs#ribers )ithin a fe) "ears of laun#h* but Hot&a!l signs up more than >&?*??? subs#ribers e!er" da"* se!en da"s a )ee,- Digital !iruses #an spread internationall" more rapidl" than biologi#al !iruses that rel" on the ph"si#al pro(imit" of the host-

In fa#t* Hot&a!l is used in o!er >'? #ountries and is the largest email pro!ider in #ountries su#h as 1hina and Eietnam* )here the" ha!e ne!er #arried out an" promotional a#ti!ities- E!en in India* Hot&a!l has surpassed the in!in#ible nati!e #"ber #ompan" R#%!ff&a!l.co& in terms of number of subs#ribersTHE ONLINE E<PERIENCE F THE 7CS FRA'E:ORK The 01s 2rame)or, outlines the ma=or #omponents that add !alue and #ontribute to the qualit" of an online e(perien#e- In essen#e* the 01s are a #ontinuation and restatement of mar,eting/s traditional %Ps 5Produ#t* Pri#e* Promotion* and Pla#e6Co")#"!#"c# 1on!enien#e goes be"ond the abilit" to #ondu#t transa#tions around the #lo#,- The #ustomers/ abilit" to a##ess and displa" information rapidl" is e(tremel" important- Sites that are diffi#ult to use #an #ause frustration* ma,ing #ustomers :#li#, off1 to another site- In fa#t* $?9 of potential #ustomers lea!e sites be#ause the" #annot find )hat the" are loo,ing for* and ''9 of people )ho start a :shopping basket1 fail to #omplete the transa#tion- Ease+of+use* ease+of+na!igation* and fast response times are among the most important fa#tors in establishing )eb brand lo"alt"* )hereas a slo) response time and site do)ntime )ill ha!e a signifi#ant negati!e impa#t-

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Co"t#"t 1ontent is rele!ant and useful information dire#ted at the needs and interests of the targeted users- .ith almost infinite displa" spa#e and in!entor" #apabilit"* online #ompanies ha!e the opportunit" to pro!ide ri#h* up+to+date information* e(pert insights* and a )ide range of produ#ts* )hi#h #an enhan#e the #ompan"/s !alue proposition1ontent is #onsidered to be a ;sticky/ appli#ation as it enti#es !isitors to spend longer periods of time on the siteA #ertain amount of :#ommer#e content1 is important to support the pur#hase de#isionA##ording to 2orrester Resear#h>?* $>9 of online #onsumers use the Internet for obtaining produ#t information* e!en if the" pur#hase offline* and nearl" B?9 use it for post+sales support- 7ood #ontent #an help to edu#ate bu"ers and sellers and #reate a greater sense of #ontrol o!er the transa#tion- On the other hand* !isitors should not be engulfed )ith too mu#h information- Other #ontent in#ludes #ommunit"+generated #ontent and ad!ertising 5if it is rele!ant and useful6Cu$to&!$at!o" 1ustomisation in!ol!es tailoring the presentation of a )eb+site to indi!iduals* based on profile information* demographi#s* or prior transa#tions- Online sites #an tra#, a #ustomer/s pur#hase histor" and modif" its ser!i#e a##ordingl"- Often* sites allo) ;surfers #ustomise their e(perien#e b" #hoosing )hat t"pe of information the" !ie) through personali@ed sites 5su#h as ' =a/oo>6* as )ell as through lo"alt" programmes that pro!ide targeted benefits- Some #ompanies ha!e ta,en this a step further and #ustomise the produ#t or ser!i#e on offer 5D#ll offers :made +to+orderG #omputers through D#ll O"l!"#6- 1ustomisation #reates the feeling of a one+to+one relationship* )hi#h enhan#es the user/s online e(perien#eCo&&u"!t

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Online #ommunities are emerging as ne) gathering pla#es for #onsumers )ith similar interests 5e-g- I V!lla0# and G#oc!t!#$G- These sites allo) members to intera#t )ith one another* share information and a##ess a )ide range of ser!i#es- An important #ontribution of these #ommunities is that the" pro!ide members )ith a medium to #ommuni#ate )ith ea#h other- Members #an intera#t in #hat rooms* use bulletin boards* and organise li!e e!ents- A unique #hara#teristi# of an online #ommunit" is that the site in#ludes both editorial #ontent 5determined b" the site o)ner6 and member dri!en #ontent- An online #ommunit" offers a #ompelling )a" to enti#e #ustomers ba#, to a site- It fosters a sense of belongingness among the members* )hi#h is fa#ilitated b" a #ombination of fa#tors2or a #ommunit" to )or,* it needs a #riti#al mass of members- 1ommunities enhan#e the speed and !alue of information sharing* allo)ing #ustomers to deepen their e(perien#e

)ith a brand and build more personal #onne#tion* and #an #reate emotional lo"alt"* )hen membership in the brand/s #ommunit" be#omes an end in itselfCo""#ct!)!t 1onne#ti!it" is #on#erned )ith site+to+site #onne#ti!it" and user+to site #onne#ti!it"Site+to+site #onne#ti!it" fo#uses on #onne#ting users to other rele!ant sites- 1ompanies #an pro!ide a sele#tion of related lin,s that #omplement the site/s purpose and !alue proposition* as )ell as attra#ting traffi# from other sites- 1onne#ti!it" is enhan#ed b" lin,ing to sear#h engines L portals and popular sites )here target #ustomers are li,el" to be bro)sing- This is similar to pla#ing offline stores in high traffi# areas- On#e #ustomers ,no) of a site* the" opt to input the RA 5Internet address + )))-brand+name-#om6 ser+to+site #onne#ti!it" dire#tl" into the bro)ser and a##ess the site immediatel"-

fo#uses on pro!iding in#enti!es for users to #onne#t ba#, to the site- The de!elopment of lo"alt" programmes* )hi#h pro!ide targeted and unique 51ustomised6 benefits to the #ustomer* ser!es this purpose and helps to build #ustomer lo"alt"- Other tools su#h as book marking the page #an also fa#ilitate #onne#ti!it"Cu$to&#r Car#

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Online #ustomers often require assistan#e and reassuran#e- 1ustomers share se#urit" and pri!a#" #on#erns* and a re#ent sur!e" b" Mar,et .at#h re!ealed that 'B9 of surfers feel that gi!ing out personal information on the Internet is unsafe- Therefore* #ustomer support at all stages of the intera#tion is important* and #an be pro!ided through e+mail* online #hat* toll+free telephone numbers* and 2AN pages 52requentl" As,ed Nuestions6 to sol!e problems- In addition* #ustomer #are a#ti!ities #an in!ol!e pro!iding a !ariet" of pa"ment* deli!er" and return options* as )ell as features su#h as gift+)rappingCo&&u"!cat!o" The Internet pro!ides the opportunit" to establish dialogue )ith #ustomers through e+ mail* li!e #hat* and online sur!e"s- 1ommuni#ation #an be tailored to spe#ifi# user interests and should allo) for t)o+)a" intera#tion- It is important in building relationships* as )ell as informing and reminding #ustomers of spe#ial offers* ne)s up+ dates* a#ti!ities* e!ents and sub=e#ts of interest to the #ustomerThe stages in building a lo"al #ustomer base is basi#all" a reformulation of the Inno%ation,Adoption *odel 52igure & + A)areness* Interest* E!aluation* Trial* Adoption6* modified to ta,e into a##ount of the intera#ti!e d"nami#s of the Internet- This model #onsists of fi!e stages 4 Attract, Engage, Retain, +earn and Relate , Attract The #riti#al first step of the digital #ustomer e(perien#e is to attra#t ;eyeballs* ;and bring people to the site for the first time- The #ompan" must build a)areness and #ommuni#ate its !alue proposition to its target #ustomers- This is more diffi#ult online than offline* be#ause there is no ph"si#al presen#e- Therefore* !isibilit" relies solel" on +ommunication- The me#hanisms to #ommuni#ate range from traditional media 5TE* billboards* Maga@ines* Ne)spapers* et#-6 to online tools* in#luding affiliate programmes )ith other )ebsites* lin,s from dire#tor" sear#hes 5+onnecti%ity6* e+mail notifi#ations and banner ad!ertisements-

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The most effe#ti!e methods are dire#t e+mail* affiliate programmes* publi# relations and tele!ision ad!ertising- Online #ompanies must ensure that the #ost of attra#ting and a#quiring #ustomers is lo)er than the a!erage lifetime !alue of these #ustomers 5AE16Iapferer/s Brand Prism is useful to ensure that a #ompan" de!elops a distin#t and #onsistent brand identit"- 1reati!it" is also an important fa#tor in gaining attention in toda"/s #luttered mar,etpla#e- Attra#ting #ustomers is onl" the first step in building online brands- 1ompanies then need to engage #ustomers to obtain their interest and parti#ipationEngage .ith the multitude of #hoi#e a!ailable on the Internet* it is important to qui#,l" engage #onsumers/ interest before the" mo!e on- The ,e" fa#tors at this stage are +on%enience #ombined )ith interesting +ontentRetain Maintaining ongoing #onta#t is essential for building relationships- It is the e(tension of engaging and fo#uses on ,eeping a #ustomer on the site through the use of sticky appli#ations- +ontent is the basi# dri!er of retaining #ustomers on a site* and must be #ontinuousl" updated due to the multiple !isit nature of #ustomers- The ob=e#ti!e is to in#rease the #on!ersion rate 59 of bro)sers #on!erted into bu"ers6* and retaining #ustomers and engaging them on an ongoing basis results in in#reased produ#t pur#hase opportunities and pro!ides the opportunit" to learn more about the #ustomer* and forge #loser relationships than an" offline operator- +ommunities and +ustomisation are other sti#," appli#ations+earn The Internet pro!ides e(tensi!e opportunities to learn about #onsumers 5demographi#s* attitudes and beha!iour6- The initial site registration pro!ides an earl" opportunit" to obtain useful information- Building up a ,no)ledge database on ea#h #ustomer + )ho the" are and )h" the" shop online* and )hat additional produ#ts and ser!i#es are the"

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interested in + pro!ides #ompanies )ith !aluable information )hi#h* if used properl"* #an #reate !alue for the #ustomer and help build the brand #ustomer relationshipRelate B" le!eraging the multidimensional data gathered from ongoing intera#tions )ith indi!idual #ustomers* a #ompan" #an #reate !alue b" pro!iding a personali@ed online e(perien#e- This helps to #reate a #ustomer base that spends more time and mone" at a site- +ustomisation and good +ustomer +are help to ere#t s)it#hing barriers and en#ourages #ustomers to return and repeat the #"#le-

LI'ITATIONS OF BRANDBBUILDING ON THE INTERNET It )ould be unrealisti# not to a#,no)ledge some of the limitations to )hat the Internet #an offer the brand+building pro#essD +The Internet does not ha!e the penetration of other promotional mediums 5e-g- TE* Radio6+The Internet supports brand+building a#ti!ities )here there is a need to build a relationship- 1ertain produ#t #ategories* su#h as gro#eries and #on!enien#e goods* do not lend themsel!es to a need for #ustomers to build a relationship )ith the brand+Not all produ#t #ategories ha!e a strong fit )ith intera#ti!e media as the" still need real life intera#tion* and the need to stimulate the other senses 5taste* tou#h* smell6+Brand+building fa!ors produ#ts that #an be sold online- ;o)e!er* it is not e#onomi#all" feasible to sell #ertain produ#ts* espe#iall" in small quantities* due to high deli!er" and transa#tion #osts 5relati!e to the !alue of the produ#t6-

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F!"%!"0$ On the Internet* the e(perien#e is the brand- In order to #reate :apostles 1, #ompanies must pro!ide a satisf"ing end+to+end #ustomer e(perien#e + from the promises made in the !alue proposition* to its deli!er" to the #ustomer- 7i!en the high a#quisition #osts of online #ustomers* it is #riti#al for #ompanies to build relationships and foster brand lo"alt"- The 01s 2rame)or, outlines the ,e" #omponents of the brand e(perien#e and the sour#es of added !alue> Iotler* P- :Mar,eting Management 4 the Millennium EditionG B Aa,er* D-* :Managing Brand Equit"D 1apitalising on the Ealue of a Brand NameG $ Iapferer* F-* : Strategic Brand *anagement1 % Phillip Iotler* :Mar,eting ManagementG & Berr"* A- M Parasuraman* A-* :*arketing Ser%ices9 +ompeting Through <uality1 * 5Ne) Cor,D 2ree Press6* >88>* pp->$'+>%B

RESEARCH METHODOLOGY
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RESEARCH 'ETHODOLOG=
Pro1l#& Stat#&#"t A free mar,et #ompetition is se!ere and #onsumers prefer man" times re#ogni@able brands- Building brand is done b" all leading #ompanies- Interbrand latest ran,ing #onfirms amount of resour#es spend on brand building #orrelating )ith the #ompan" gro)th- Earlier it )as onl" big #ompanies )ho had the resour#es to build brands- The ad!ent of internet has bro,en all the barriers in rea#hing #ustomers and opening up the mar,ets- This has led to equal opportunit" for all pla"ers to build brands on internet )hose potential is humongous- Small #ompanies ha!e utili@ed the opening to gro) at faster pa#e than traditional #ompanies- E!en traditional #ompanies ha!e sho)n gro)th b" de!eloping their internet brand building efforts- The le!el pla"ing field #reated b" internet poses #omple( problems in sele#ting mar,eting strategies for internet brand building )hi#h #an help in differentiation in the #luttered mar,etO1H#ct!)#$ of t/# Stu% &$

The ob=e#ti!es of this dissertation are as follo)sD - To gain an understanding o the role o *rands and how they have traditionally *een *uiltA re!ie) and anal"sis of leading a#ademi# thin,ing )ill be used to e(plorethese issuesB To explore how the %nternet is changing the *rand-*uilding environment. and to identi y new sources o value. tools and strategies to *uild *rands on the %nternetA#ademi# literature and an anal"sis of the impa#ts of the Internet )ill be used to in!estigate these fa#tors* supported b" se#ondar" data related to aspe#ts of online business from a##redited and published sour#esB To identi y the /ey actors and characteristics that contri*utes to the development o success ul %nternet *randsThis is based on the out#ome of the primar" resear#h 5in+depth #ase studies6* )ith referen#e to the theoreti#al themes that emerge from the literature re!ie) and in terms of the pra#ti#al impli#ations for #ompaniesResearch 0esign Academic ResearchI 7i!en that the Internet is su#h a ne) area* there is more )or, in popular rather than a#ademi# literature- 1onsequentl"* the literature re!ie) dra)s on leading a#ademi# thin,ing in more established areas su#h as brand management* relationship management* mar,eting* strateg" and e#onomi#s- The absen#e of a#ademi# literature on Internet branding posed a ma=or obsta#leJ ho)e!er* this also highlights the true !alue of the dissertation- .hile there is no attempt* nor desire* to pro!ide an in depth anal"sis of the ps"#hologi#al and so#ial dimensions of brands* #ertain ,e" fa#tors are highlighted in their rele!an#e to the dissertation-

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Secondary 0ataD This #onsists primaril" of ,e" fa#ts and sur!e" results quoted b" leading #onsultan#" and resear#h firms* and is used to pro!ide insight into some of the fa#tors that #ontribute to the de!elopment of su##essful brands1ypothesis 2&ramewor/3D This is based on the literature re!ie) and se#ondar" data- The resulting =+s >ramework and Interacti%e Brand, Building *odel outline ,e" sour#es of added !alue and the tools a!ailable for #ompanies to #reate a high+impa#t #ustomer e(perien#e that is #riti#al in building an online brand- These are further refined using the insight obtained through the #ase studiesCase StudiesD The dissertation is essentiall" built on the in+depth anal"sis of the brand building efforts of si( online #ompanies- The #ase studies in#lude born+on+the+)eb #ompanies that are among the most re#ognised Internet Brands 5A&a?o".co&* #Ba and =a/oo>6* traditional :bri#,s +and+mortarG #ompanies that rose to the #hallenge of ta,ing their brands to the Internet 5Ga6.co&6* as )ell as an Internet failure 5 Boo.co&6- The #ombination of #ases pro!ides a useful and pra#ti#al insight into brand+building issues and problems* and fa#tors that #ontribute to a brand/s su##ess-

T 6# of R#$#arc/
The resear#h is mainl" done in a des#ripti!e )a" and lots of sur!e" has been done in order to #ondu#t resear#h- Due to the nature of resear#h both primar" and se#ondar" data has been used and the details are gi!en in the ne(t subheading-

R#$#arc/ Proc#%ur#
This se#tion outlines the pro#edure follo)ed in #olle#ting data and anal"@ing ita3- Type o data usedI

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Both primar" data and se#ondar" data )here used- Primar" data )as obtained from dire#t inter!ie)s )ith e+#ustomers* )eb+users* and potential pur#hasers- Se#ondar" data )as obtained from sour#es li,e bro#hures of #"ber #ompanies* .eb sites* Maga@ines* and Boo,s et#*3- "ethod o collection4 The sur!e" )as #ondu#ted to #olle#t primar" data both quantitati!e and qualitati!e- Data )as sought from #"ber #ompanies and e+#ustomers- It in#ludes questionnaires* telephone sur!e"s and e+mail sur!e"sc3 Tools or data collection4 The primar" data )as #olle#ted )ith the help of questionnaire- The questionnaire )as designed to obtain ne#essar" information that #an help resear#her to fulfill his stud"- The questionnaire )as administered b" the resear#her through dire#t !isit to institutes* #ompanies* administration offi#es* and residen#es* and b" #olle#ting them from the respondents at a later date in some #asesPart of the questionnaire )as #ondu#ted abroad b" an o!erseas #onfidential partner of the resear#her- The abo!e mentioned partner released the questionnaire* #olle#ted the data* and #on!e"ed the feedba#, to resear#her through Internet- That ,ind of un#on!entional e+ #on!e" has brought a ne) dimension to the stud"* and brought out a broader idea about ho) the things doned3 Sample si5e4 Ieeping in mind the budgetar"* time and manpo)er #onstraints* the total sample sele#ted )as >?? sample units- &? of them )ere #ondu#ted in Bangalore* and the remaining )as administrated abroad* mostl" in 7eorgia* SAe3 Sampling Techni(ue The sample used is small ,eeping in !ie) of the nature of the respondents- So )e ha!e used #on!enient random sampling in the dissertation-

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3 Assumption4 The information from the respondents has been treated as the #orre#t informationThough the sample si@e is limited to >??* the resear#her feel it is good enough to #ome to #on#lusion about ho) to build a re#ogni@ed brand name on InternetTo anal"@e and interpret the primar" data* the resear#her has used simple per#entage anal"sis* )hi#h suits the best-

Sco6# of t/# Stu%

To understand )hat !ital role a brand name might pla" in #ontributing to the su##ess of a #"ber #ompan"* it )ill be ne#essar" to understand the #onte(t of #urrent issues )ithin the Dot#om industr" and to identif" the main pla"ers )ithin the Dot#om industr"* their brand building strategies* their su##esses and failures* and lessons from them- The pro=e#t )or, #o!ers brand building strategies )ith spe#ial referen#e to si( t"pi#al #"ber #ompanies* in#ludingD A&a?o".co& =a/oo> EBa Ga6.co& Boo.co&

And the sur!e" has been #ondu#ted based on t)o sour#esD the first are randoml" sele#ted respondents )ithin the #it" of Bangalore* and the se#ond are randoml" sele#ted e+ respondents from o!erseas* mostl" in 7eorgia* #olle#ted through e+mailsSA- Nuestionnaire )as sent and

L!&!tat!o"$ of t/# Stu%

>- Part of the stud" )as #arried out in Bangalore #it"- ;en#e the results must not be e(tended to the national le!el as the ps"#hographi#s and demographi#s !ar" signifi#antl" a#ross the #ountr"- Thus the results are appli#able onl" in Bangalore #it"-

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B- Out of > la,h odd dot#oms in the )orldJ onl" & #ompanies are sele#ted* so )e #an not generali@e the findings$- 7i!en suggestions and interpretations are limited to parti#ular #ompanies onl"%- Part of the stud" )as based on e+sur!e"* in )hi#h resear#her has entrusted an o!erseas #onfidential partner to do the =ob of releasing the questionnaire* #olle#ting the data* and #on!e"ing the feedba#,- The result* therefore* is less dependable&- Biased and #on#ealed responses b" the respondents #an<t be a!erted'- E!en though #omparati!e anal"sis of different #"ber #ompanies is done* onl" some aspe#ts of their brand building strategies are ta,en into #onsiderationThe data a!ailable on this are limited and #ompanies* be#ause of their business se#ret* are not )illing to part )ith it0- The pro=e#t is to be #ompleted )ithin B months* )hi#h is insuffi#ient for a further in+ depth anal"sis- The limitation of time hori@on therefore is another #onstraint of this stud"-

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CASE ANALYSIS
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CASE ANAL=SIS INTRODUCTION This #hapter pro!ides an anal"sis of si( #ompanies- Ea#h #ase is presented in the same format in#luding* a #ompan" o!er!ie)* its !alue proposition* the sour#es of added !alue 5using the 01s 2rame)or,6* its brand+building strateg" 5ho) it generates traffi#6* and other ,e" fa#tors that ha!e #ontributed to its su##ess 5or failure6- The #ases are presented in the follo)ing sequen#eD =a/oo> A&a?o".co& Boo.co& EBa Ga6.co&

CASE STUD=I =AHOO>

CO'PAN= OVERVIE:

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In April >88%* CahooO )as founded b" Da!id 2ilo and Ferr" Cang* t)o PhD students at Stanford ni!ersit"* )ho started an online guide as a )a" to ,eep tra#, of their personal interests on the Internet- The #on#ept e(ploded 5through )ord+of+mouth6 and in less than si( months* the site )as re#ei!ing > million hits per da"- CahooO has sin#e promoted from an ordinar" sear#h ser!i#e into a global Internet #ommuni#ations* #ommer#e and media #ompan" that offers a #omprehensi!e branded net)or, of ser!i#es and information to more than >%& million indi!iduals ea#h month )orld+)ide* and is one of the fe) Internet #ompanies to turn a profit earl" in the de!elopment of the Internet- As the first online na!igational guide to the )eb* CahooO is a leading guide in terms of traffi#* ad!ertising* household and business user rea#h- CahooO is one of the most re#ognised brands on the Internet and is the '&th most !aluable brand in the )orld- The #ompan"/s global )eb net)or, in#ludes B$ )orld properties outside the S-

VALUE PROPOSITION At the #ore of CahooO/s !alue proposition* lies the dire#tor" + a hand tailored and eas"+to+ use guide to the Internet that be#omes more useful ea#h da" as Internet penetration* the amount of information* and the number of )ebsites #ontinues to e(plode- A##ording to Timoth" Ioogle* 1EO of CahooO* :&e;%e set out to make ?ahoo@ the only place anyone needs to go to get connected to anything. There;s nothing in the real world to compare to thatAG- As su#h* CahooO offers a range of supporting ser!i#es that add !alue* from e+mail ser!i#es to sto#, quotes and mu#h more* all in a single lo#ationSOURCES OF VALUE J THE 7C$ FRA'E:ORK Co")#"!#"c# 1entral to CahooO/s su##ess* is the )a" it has stru#tured and displa"ed information- Their goal is not to list e!er"thing under the sun* but instead to be sele#ti!e and to displa" the best the )eb has to offer in a hierar#hi#al frame)or, that ma,es sense to #ustomers- The"

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ha!e ,ept the design of the site simple and #lean to appeal to #ustomers and a!oid slo)+ to+load graphi#s- More re#entl"* CahooO e(tended its #on!enien#e through its ?ahoo@ #%erywhere ser!i#e* to allo) a##ess* regardless of platform 5i-e- mobiles* TEs* Palm #omputers6Co"t#"t CahooO has pursued a broad range of deals )ith #ontent and #ommer#e #ompanies- These ha!e helped CahooO be#ome the pla#e to tra#, do)n a broad range of !aluable information and resour#es* ranging from dail" ne)s and )eather reports to road maps and boo,s* and has been at the heart of CahooO/s gro)th and de!elopment - The" ha!e formed multiple allian#es and partnerships )ith leading online #ompanies su#h as A&a?o".co&Their thrust has been to pro!ide !aluable #ontent to #ustomers* )hile pro!iding partners a##ess to a large #ustomer base- This #reates a )in+)in situation as its satisfies CahooO* the partner* and more importantl"* the end+user-

Cu$to&!$at!o" *y ?ahoo@ allo)s surfers to #ustomise their !ie) of CahooO and pi#, fa!orite topi#s* from sto#,s and sports results to )eather and air fares* and is similar to a #ustom tailored ne)spaper- B" tailoring the information to users/ preferen#es* CahooO has in#reased #ustomer lo"alt" and retention ratesCo&&u"!t CahooO has de!eloped #ustomi@able )eb #ommunities #alled CahooO 1lubs* )here groups of people )ith shared interests #an #ommuni#ate through #hat* message boards* and e+mail- In >888* CahooO A#quired 7eo 1ities* 5one of the largest online #ommunities6 )hi#h pro!ides eas"+touse and inno!ati!e tools to allo) users to publish #ontent on the site- CahooO/s a#quisition of e 7roups 5an e +mail group #ommuni#ation ser!i#e6 )ill pro!ide #onsumers )ith po)erful ne) )a"s of #ommuni#ating one+toone* one+to+man"* and man"+to+man"- One of the most re#ogni@ed CahooO #ommunities is the famous CahooO Messenger- Built from >88&* )ith more than >??*??? #hat rooms and

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)idel" !ar"ing topi#s* from publi# health to mo!ies* from sports to politi#s* CahooO Messenger attra#ts more than > million #hatters dail"* and spreads its #ommuni#ation through )ord+of mouth faster than an"thing else- In some #ountries li,e Eietnam and 1hina* CahooO Messenger has be#ome a #ultural phenomenon* )here an ordinar" #hatter spends no less than $ hours dail" on CahooO Messenger to meet his or her e+palsCo""#ct!)!t 1onne#ti!it" is CahooO/s #ore produ#t* and the nature of the na!igation business* and is dri!ing CahooO/s multiple partnerships and allian#es* to pro!ide its #ustomer base )ith a##ess to useful lin,s and #ontent- In addition* CahooO has also implemented #ampaigns to persuade users to boo,mar, the site* or to ma,e it their home page-

Cu$to&#r Car# CahooO responds to #ustomer inquiries !ia e+mail* fa(* telephone and e!en traditional mail* and plans to in#orporate other features su#h as online #hat to fa#ilitate #ommuni#ations- CahooO spends more on #ustomer support than most #ompanies* reinfor#ing the brand #ustomer relationship* and #ontributing to their reputation as a qualit" ser!i#e pro!iderCo&&u"!cat!o" B" positioning itself as a site that users frequentl" !isit* and through #ommuni#ations !ia email* CahooO maintains #lose #onta#t )ith #ustomers- CahooO also en#ourages #ustomers to e+mail ideas and feedba#,BRANDBBUILDING STRATEG= CahooO is a mar,eting ma#hine- It is often highl" praised for its brand+building abilit" and promotion strategies through the use of traditional 5offline6 media and guerrilla

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mar,eting te#hniques to build a)areness* and a##ording to Intelliquest* 3B9 of Internet users and B$9 of people intending to go online* re#ognise the name CahooO- CahooO/s brand+building su##ess starts )ith its name* and its impli#ations of a good time- 7i!en the unease )ith )hi#h the a!erage #onsumer approa#hes te#hnolog"* CahooO a!oided #hara#teri@ing itself as a te#hnolog"+oriented #ompan"* and the #ompan" has al)a"s #ommuni#ated the utilit" of its ser!i#e in a )a" that reinfor#es other #ore brand attributes 4 a sense of irre!eren#e* an approa#hable nature* and an inherent friendliness- .hile Internet #ompanies )ere targeting e$isting Internet users through the use of online promotion methods* CahooO e(tended be"ond this to use traditional offline media- At the time this )as #onsidered a brea,through* and it formed a #riti#al lin, in CahooO/s brand building strateg"- Their strateg" )as to target :near surfers1 + people )ho are not "et online but are li,el" to use the Internet in the near future- These near surfers represented 5and still do6 a large and fast gro)ing group and* therefore* b" building a re#ognised brand name* CahooO )ould be one of the first sites that the" !isited-

As a result* CahooO aggressi!el" promoted the site through publi# relations* TE #ommer#ials and radio spots during dri!e time- In >88'* the" hired Black )ocket to #reate a brand a)areness #ampaign that be#ame !er" su##essful through the de!elopment of the tag line : o ?ou ?ahoo@B1 * )hi#h #on!e"ed the brand/s irre!erent personalit" - In addition* CahooO adopted : guerrilla marketing1 te#hniques 4 )ith its name being plastered on e!er"thing* from the Ramboni i#e+sha!ing ma#hine of the San Fose Shar,s 5I#e ;o#,e" Team6 to o!er >B? produ#ts* in#luding ba#,pa#,s* T+shirts* breath mints* para#hutes* sno)boards* sailboats* and "o+"os* as )ell as TE sho)s 5All 'cB#al* ER6 and ;oll")ood mo!ies- The" e!en ha!e a barter deal )ith the San 2ran#is#o %8ers* )hi#h has fans s#reaming CahooO to #heer their team as the CahooO/s logo flashes a#ross the football stadium s#reen- The" also teamed up )ith publisher Riff+Da!is 1o- to #reate ?ahoo@ Internet (ife* a monthl" maga@ine guide to )hat/s ne) on the )eb and it has #o+ branded produ#ts* ser!i#es and #ontests )ith )ell ,no)n brands su#h as B#" F E#rr C$* V!$a and 'CI- CahooO has paid little for this e(posure* )hi#h has been instrumental in establishing CahooO as a household name- Although this seems li,e a shotgun approa#h*

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it is in fa#t a #arefull" or#hestrated #ampaign that requires ea#h branding opportunit" to meet one stri#t test + it must reinfor#e the image of the #ompan" as :a ser!i#e that is fun* a little )a#," and in!itingG- On#e #ustomers a##ess the site* #ustomers qui#,l" dis#o!er its !alue and through a high qualit" e(perien#e 501s6* CahooO has managed to #ulti!ate high brand lo"alt"- A##ording to a re#ent stud"* 8B9 of CahooO users rate the ser!i#e as :e(#ellentG or :!er" goodG )hi#h is signifi#antl" higher than those of other sites* and 0'9 turned to CahooO before !isiting another sear#h engine or na!igational site- In addition* the resear#h sho)s that 0$9 of CahooO users boo,mar, the ser!i#e + higher than all other Ser!i#es- A##ording to Iaren Ed)ards* EP+Brand Mar,eting* Cahoo/s abilit" to qui#,l" pi#, up on user<s interests has been a ,e" fa#tor #ontributing to their su##ess* stating that :if we wait to hear about it in the news, it;s too late

OTHER FACTORS THAT CONTRIBUTE TO THEIR BRAND LEADERSHIP I""o)at!o" F F!r$tB'o)#r A%)a"ta0# CahooO )as first to mar,et )ith a detailed sear#h engine* first to go publi#* first to turn around an annual profit* and first to go main stream b" ad!ertising its name using traditional media- To maintain its lead* CahooO has in!ested relentlessl" in ne) ser!i#es and mar,eting programmes that ha!e set it apart from the pa#,- In addition* the" ha!e #arried out e(tensi!e partnering* allian#es and a#quisitions to pro!ide added !alue ser!i#es to their #ustomers* )hile attra#ting ne) #ustomersCu$to&#r Focu$ F R#6utat!o" for E(c#ll#"c# CahooO has ,ept #lose tabs on the e!olution of the mar,et and the interests of its #ustomers* and has #ulti!ated a reputation for e(#ellen#e* from its #on!enient and logi#al stru#ture and displa" of information* to its simple design* its e(#ellent #ustomer ser!i#e* its #hoi#e of partners* and its openness 5for e(ample* if a user #annot find )hat it is

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sear#hing for* CahooO points them to its #ompetitors b" in#luding lin,s to AltaV!$ta* HotBot* GoTo.co&* and other sear#h engines at the bottom of its sear#h results page6CONCLUSION CahooO is one of the most su##essful brands on the Internet- As the first online na!igational guide to the )eb* CahooO has benefited from a first mo!er ad!antage- The" ha!e maintained that lead through the #reation of a high qualit" end+to+end #ustomer e(perien#e- This has been a#hie!ed through their relentless in!estment into ne) ser!i#es and e(tensi!e partnerships and allian#es )ith leading brands- These relationships ha!e pro!ided end+users )ith added+!alue* )hile also asso#iating CahooO .ith )ell ,no)n brands- CahooO/s intense fo#us on #ustomer/s needs and high qualit" online e(perien#e has been instrumental in #ulti!ating a reputation for e(#ellen#e- In addition* their inno!ati!e promotional and guerrilla mar,eting te#hniques* ha!e #reated a distin#t brand identit" that Differentiate the brand and appeals to its target mar,et- As a result of all these fa#tors* CahooO has built a strong brand* )ith a large #ustomer base and high le!els of #ustomer lo"alt"- The essen#e of CahooO/s brand+building strateg" is highlighted in a simple statement made b" Iaren Ed)ards* EPBrand Mar,eting of CahooO* :)e<!e really focused our marketing efforts on attracting new users and pro%iding an e$perience that makes them stay2G-

CASE STUD=I A'AKON.co&

CO'PAN= OVERVIE: Ama@on-#om has be#ome s"non"mous )ith e+#ommer#e* and is one of the fe) Internet brands that are re#ognised all o!er the )orld- It is the 0%th most !aluable brand in the )orld* and the most )idel" re#ognised e#ommer#e brand name in the S 5)ith '?9 a)areness6- Ama@on ser!es o!er B$ million #ustomers from >'? #ountries* and has sales of o!er PB billion- In addition* it is the most !isited e+#ommer#e )ebsite in Ameri#a* and one of the top t)o or three in Britain* 2ran#e* 7erman" and Fapan- In Ful" >88&* Ama@on-#om laun#hed )ith a mission to use the Internet to transform boo, bu"ing into a fast* eas"* and en=o"able e(perien#e- Ama@on-#om has sin#e e!ol!ed from being an online boo,seller into a one+stop shop )ith : #arth;s Biggest Selection1 of more than >3

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million produ#ts* ranging from boo,s and musi# to au#tions and shops 5a portal L mar,etpla#e that online sellers #an use to sell their produ#ts6* and has equit" in!estments in se!eral e+tailersVALUE PROPOSITION Ama@on-#om<s su##ess stems from its #ompelling !alue proposition- Ama@on pro!ides in#reased added !alue on se!eral dimensions* in#ludingD in#reased sele#tion* dis#ounted pri#es* more information* greater #on!enien#e* and higher le!els of #ustomisation and ser!i#e than the traditional shopping e(perien#e allo)s- In addition* Ama@on has #ulti!ated a reputation for e(#ellen#e* inno!ation and deli!ering on its promises- Through its pro!ision of a one+stop shopping e(perien#e* #ombined )ith its le!els of #ustomisation and #ustomer ser!i#e* Ama@on has been able to differentiate itself from other online #ompetitors-

SOURCES OF VALUE J THE 7C$ FRA'E:ORK Co")#"!#"c# Ama@on pro!ides !alue+added features to in#rease the ease of shopping en#ourage repeat !isits and dri!e higher #on!ersion rates- The site is eas"+to+use* offering multiple paths to a gi!en boo, or produ#t- The site is designed to minimi@e do)nload time 5limited graphi#s6 for users on modems and despite the hea!" traffi#* do)nloads qui#,l" and ser!i#es !isitors adequatel"- O!er time* Ama@on has added other features for shopping #on!enien#e* su#h as the AmaCon.com All Product sear#h 5sear#hes the entire )eb6* the A,+lick e(press #he#,out* gift #li#,* )ish lists* gift reminders* and AmaCon.com Anywhere to support a##ess from )ireless de!i#es 5i-e- mobile phones* Palm EII PDA de!i#e6Co"t#"t

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Ama@on pro!ides #ontent on se!eral le!els* in#luding boo, =a#,et images* boo, summaries* e(pert re!ie)s* #ustomer testimonials* re#ommendations* and inter!ie)s )ith authors* dis#ussion boards* and #ustomer Purchase +ircles- 1ustomer pur#hase #ir#les allo) shoppers to #ross referen#e similarities su#h as )here people )or,* li!e or stud"This is an e(ample of Ama@on/s abilit" to data its !ast #ustomer base of information to learn and relate b" ma,ing re#ommendations and presenting items on the )eb page that ha!e a high probabilit" of being of interest to parti#ular #ustomers + thereb" in#reasing #on!ersion rates- B" le!eraging its !ast #ustomer base* Ama@on/s #ontent si not reprodu#ible b" #ompetition* and therefore* #reates a #ompetiti!e ad!antageCu$to&!$at!o" Ama@on pro!ides 1ustomised features and ser!i#es* from the #ustomer re#ognition at the point of interfa#e to the #ontent and re#ommendations based on #onsumers/ pur#hase histor" and Purchase +ircles- In doing so* Ama@on #reates one+to+one relationships )ith its #ustomers* )hi#h helps to build lo"alt" and #reate s)it#hing #osts* )hile dri!ing up repeat pur#hases and #ross+selling opportunities-

Co&&u"!t Ama@on has also added a #ommunit" element to the pur#hasing pro#ess* and ingeniousl" turned boo,lo!ers/ predile#tions into a sour#e of differentiation b" soli#iting and posting readers/ #omments )ith boo, displa"s- This builds the lo"alt" of both the #ustomers )ho )rite re!ie)s and the #ustomers )ho find #ommunit" among li,e+minded people- More re#entl"* Ama@on introdu#ed AmaCon.com iscussion Boards to further enhan#ing the #ommunit" feel b" allo)ing #ustomers to share information on topi#s of interestCo""#ct!)!t Ama@on has built relationships )ith high traffi# )eb portals and sites* #on!erting them into a storefront for Ama@on* and has de!eloped an Associates Programme, lin,ing it to a large number of other sites- These are dis#ussed in more detail later-

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Cu$to&#r Car# Ama@on pla#es great emphasis on satisf"ing #ustomers and pro!iding high le!els of #ustomer ser!i#e- This #ustomer+#entri#it" is e!ident in all Ama@on/s a#ti!ities* from its shopping bas,et appli#ations )hi#h lists the estimated time to deli!er" reliabl"* to the proa#ti!e notifi#ation of ne) items of interest* real+time shipping and ba#,order noti#es* and #ustomer intera#tion- All these a#ti!ities e(ploit the #ommuni#ations #apabilit" of the )eb and e+mail to offer greater #ustomer /tou#h/ and titer #ustomer ser!i#eCo&&u"!cat!o" Ama@on maintains #lose #ommuni#ation )ith #ustomers- On#e orders are pla#ed* the" are subsequentl" #onfirmed b" e+mail* and #ustomers are also e+mailed )hen the items are shipped from the )arehouse- In addition* t)o personali@ed ser!i#es* #yes and #ditors* help maintain #onta#t and build traffi# b" e+mailing #ustomers )hen desired produ#ts or boo,s be#ome a!ailable- As a result of all these fa#tors 501s6* Ama@on has been able to #reate a strong !alue proposition and #ompelling online e(perien#e that engages and retains #ustomers* enti#ing them to return to the site and pur#hase repeatedl"-

BRANDBBUILDING STRATEG= Ama@on has attra#ted traffi# in a number of )a"s- Through the first half of >88'* Ama@on had primaril" relied on )ord+of+mouth among tightl" ,nit online #ommunities 5ne)sgroups and #hat rooms6 to #reate a : #"ber bu@@G and impro!e its !isibilit"- In the se#ond half of >88'* it began to ad!ertise in print media and online + a mo!e that along )ith the no!elt" of its business model and the ne)ness of the Internet* helped generate publi#it" and stories about the #ompan" in publi#ations su#h as The &all Street /ournal* The >inancial Times* Business &eek* 0ewsweek* 0ew ?orker and The #conomistIn Ful" >88'* Ama@on inaugurated the Associates Programme under )hi#h other )ebsites #ould displa" the Ama@on-#om hot+lin, and offer spe#ifi# boo,s of interest to their !isitors- This enabled Ama@on to rea#h more #ustomer segments and ni#hes- Instead

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of pa"ing dire#tl" for this e(posure* Ama@on offered Asso#iates referral fees of up to >&9* )hi#h onl" applied to sales that resulted from the initial click,through* and not subsequent pur#hases- The Associates Programme has been phenomenall" su##essful* attra#ting member sites of all si@es* and b" >888 it had o!er B??*??? members* in#reasing to o!er &??*??? b" August B???- Ama@on has de!eloped allian#es and partnerships )ith high traffi# )eb portals and sites- 2rom Ful" >880 to De#ember >883* Ama@on #losed deals )ith fi!e of the si( most !isited Internet addresses* in#ludingD A&#r!ca O"l!"# 5AOL6* N#t$ca6#C$ N#t c#"t#r and N#t S#arc/* =a/oo>* and G#oc!t!#$- These multimillion+dollar* multi"ear deals in!ol!e e(#lusi!e boo,+selling rights* mutual lin,s* and primar" button pla#ement on )eb portal sear#h engines- The CahooO agreement )as also lin,ed to Ama@on/s entr" into Europe + Ama@on-de be#ame the lo#al pro!ider for CahooO 7erman" and Ama@on-#o-u, the lo#al pro!ider for CahooO I M IrelandAma@on also established agreements )ith AltaV!$ta* E(c!t#* Pro%!0 and 6/o&#- In addition* Ama@on has used !iral mar,eting te#hniques through #ustomer re!ie)s* free e+ 1ards and gift #ertifi#ates 5)hi#h #ustomers send to friends* thereb" promoting Ama@on-#om6-

The ma=orit" of #ustomers #ontinue to be attra#ted through )ord+of+ mouthJ ho)e!er* )ith the e(plosion of )ebsites* Ama@on has also in#orporated traditional offline media 5TE* Maga@ines* and billboards* ne)spapers6 to generate a)arenessOTHER FACTORS THAT CONTRIBUTE TO THEIR BRAND LEADERSHIP I""o)at!o" F F!r$tB'o)#r A%)a"ta0# As an earl"+mo!er on the Internet and a first+mo!er in online boo,selling* Ama@on has been able to build a strong brand at relati!el" lo) #ostJ due to the h"pe and #o!erage it )as gi!en- In addition* Ama@on )as able to se#ure partnerships and allian#es )ith ,e" pla"ers* further enhan#ing their !alue proposition- Ne!ertheless* Ama@on is #onstantl"

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see,ing ne) )a"s of impro!ing its offering* and a##ording to Feff Be@os* :)e<re not a stationary target. &e were blessed with a two,year head start, and our goal is to increase that gapDGCu$to&#r Focu$ F R#6utat!o" for E(c#ll#"c# Ama@on/s #ustomer fo#us is e!ident throughout all its a#ti!ities- A##ording to Feff Be@os* :.nline, the balance of power shifts away from the company and goes towards the customer. .ur secret is that we ha%e not been competitor obsessed. &e ha%e been customer obsessed, while our competitors ha%e been AmaCon.com obsessedE1 - As su#h* Ama@on #ontinuall" in!ests in re+)or,ing and impro!ing its te#hnolog" infrastru#ture and soft)are 53?9 in ba#, offi#e operations6* de!eloping #ustomer ser!i#e #entres and e(panding its distribution net)or, to support high le!els of ser!i#e* establishing a reputation for e(#ellen#e and fulfillmentD!$t!"ct Bra"% I%#"t!t Feff Be@os #hose the name /Ama@on/* be#ause he )anted be short* memorable* to #apture the spirit of the site* and to #on!e" its !ast si@e and offering- In addition* he )anted the name to start )ith an /A/ so that it )ould appear at the top of sear#h engine listsCONCLUSION Ama@on has a#hie!ed a #ustomer base of o!er B$ million people and an annual re!enue run rate of o!er PB billion in less than fi!e "ears- The ,e" fa#tors dri!ing its gro)th and high retention rates stem from its #ompelling !alue proposition and high qualit" end+to+ end #ustomer e(perien#e- Ama@on has also benefited from a first+mo!er ad!antage gi!ing it an edge o!er #ompetitors* ho)e!er* Ama@on/s intense fo#us on #ustomer needs and #ontinual inno!ation* ha!e ,ept it ahead- This #ustomer+#entri#it" is a ,e" hallmar, of a su##essful Internet brand-

CASE STUD=I BOO.co&

CO'PAN= OVERVIE:

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2ounded in >888* Boo-#om laun#hed )ith the goal of being the )orld/s first truly online retailer of sportswear and fashion1, and )as billed as one of Europe/s hottest e +#ommer#e !entures- Boo-#om had set the re#ord as Europe/s best+founded European Internet Start+up* re#ei!ing P>B& million of funding* arranged through F- P- Morgan* and in#luded high profile in!estors su#h as Bernard Arnault* 1hairman of AEM; 5o)ns Aouis Euitton and 1hristian Dior6 and B> In!estment 5Benetton 7roup6* among othersAfter a high profile laun#h* the #ompan" )as hindered b" te#hni#al problems that dela"ed the site going li!e b" fi!e months 5until No!ember >8886- On#e going li!e* Boo-#om entered si( mar,etsD S* England* S)eden* 2inland* 7erman" and Denmar,2.3.- VALUE PROPOSITION A##ording to Ia=sa Aeander* founder and 1hief Mar,eting Offi#er of Boo-#om* : our marketing thrust is not based on pricesF it;s about range and con%enience. If a clothing brand is on the Boo site, it means all that brand;s product line is a%ailable, not the limited range you might get at most (ondon fashion shops=1 - Boo-#om pro!ided a range of >3 fashion and foot)ear brands in#luding DKN=* Pu&a* E)#rla$t* Croco%!l# and Co")#r$#-

SOURCES OF VALUE F THE FAILURE OF BOO.CO' Their strateg" )as to design an inno!ati!e )ebsite )ith intera#ti!e graphi#s to appeal to both sport and fashion enthusiasts- Eisitors #ould sear#h items b" sport* brand* #olour* pri#e or st"le* )ith the abilit" to rotate produ#ts and @oom+in on fabri#s* stit#hing and #olour- $+D produ#t images )ere a##essible in all #olours and st"les* read" to sto#, in a shopping #art and mi(+n+mat#h on a rotating se(+spe#ifi# mannequin- To trans#end )eb shopping/s impersonal stigma* the #ompan" de!ised a personalit" #alled Miss Boo* an animated personal shopper )ho guides site !isitors and offers remar,s- To build #ustomer lo"alt"* the" established the Pla"er/s 1lub 5or Aeisure Aounge in the I6* a lo"alt" s#heme to re)ard frequent bu"ers* and de!eloped B%+hour #ustomer ser!i#e teams in four )orld+)ide offi#es- Boo-#om also published #ontent in an online st"le maga@ine*

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in#luding intera#ti!e games to attra#t pur#hasers- All orders )ere to be deli!ered )ithin & )or,ing da"s in Northern Europe and the S from distribution #entres in Muni#h* 7erman" and Aouis!ille* Ientu#,"- ;o)e!er* Boo made some fundamental mista,es2irst* a large portion of its potential mar,et )as unable to use Boo-#om/s site be#ause the )ebsite design 5e(tensi!e graphi#s* pop+up )indo)s* $+D images6 )as too ad!an#ed for most #omputers and a##ess )as frustratingl" slo)- It required a high band)idth Internet #onne#tion that )as onl" a!ailable to >9 of European surfers and B9 in the S- In addition* the site )as poorl" stru#tured and diffi#ult to na!igate* and a##ording to Fim M#Ni!en* 1EO of Ierb* an a)ard )inning )eb Design 1ompan"* Boo-#om )as a :mish,mash when it when li%e............ it didn;t seem ob%ious what you were supposed to doG1. In Fanuar" B???* Boo redesigned its )ebsite to ma,e it easier to na!igate* and added a !ersion de!oid of pop+up )indo)s and graphi#s- The #hanges also gagged Miss Boo and a paper #atalogue )as printed for those )ho )ant to bu" offline- ;o)e!er* the earl" bad e(perien#e and negati!e )ord+of+mouth s#ared off man" online shoppers )ho lost #onfiden#e as Boo-#om had de!eloped a reputation as a #umbersome and slo) site* e!en though it had be#ome simpler and faster- There )ere also fulfillment and #ustomer ser!i#e problems- Although #ustomers re#ei!ed the pur#hased items )ithin a fe) da"s* man" #omplained that the" re#ei!ed the )rong items- In addition* these /mista,es/ #ould not be #orre#ted easil"- 1ustomers had to demand a refund* and then re+order the items again- Ob!iousl"* on#e the mone" )as refunded #ustomers did not ris, going through the frustrating and in#on!enient pro#ess again- Besides these issues* there #ontinues to remain a doubt )hether the basis of Boo/s !alue proposition )as #ompelling enough in the first pla#e- 2irst of all* pri#es )ere not dis#ounted* and se#ondl"* an Internet alternati!e to real+)orld shopping for high fashion #lothing* misses man" aspe#ts that tend to be !alued b" Boo-#om/s target audien#e of the "oung and trend" shoppersTraditional fashion shopping pro!ides sour#es of !alue through its so#ial e(perien#e and entertainment* )hereb" people en=o" )ondering around shops* tr"ing on different st"les* getting their friends/ opinions* and the feeling and image asso#iated )ith )al,ing into a high fashion store- Boo/s !alue proposition failed to deal )ith these issuesBRANDBBUILDING STRATEG=

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Boo-#om )as quite su##essful in generating interest and #reating a)areness- The name )as #hosen on the basis that it is H simple, catchy and easy to remember and spell H and #ould be trademar,ed in &' #ountries- There )as a lot of h"pe surrounding the start+up due to the amount of mone" in!ested in the #ompan"* and the high+profile in!estors in!ol!ed- Boo qui#,l" burned #ash on PR and ad!ertising* spending P>& million on an ad!ertising #ampaign )ith BMP DDB* )hi#h re#ei!ed a mi(ed response- Ad!erts appeared on TE* #inemas and maga@ines su#h as G9* ESPN 'a0a?!"#* Roll!"0 Sto"#* Vo0u#* and Ell#- Although the" attra#ted traffi#* #ustomers soon dis#o!ered the site/s frustrating fla)s* resulting in lo) #on!ersion rates* and despite of all the h"pe* negati!e )ord+of+mouth spread more qui#,l" than the ad!ertisementsCONCLUSION Boo-#om failed to pro!ide a #ompelling !alue proposition* and did not fo#us on target #ustomer benefits- Instead of o!er h"ping the #on!enien#e the" offer* Internet #ompanies must remind themsel!es )hat #ustomers miss about in+person shopping and #ompensate )ith true added !alue- Boo-#om also failed to address basi# #ustomer needs of a simple* eas"+tou#h* qui#,+to+load site* and should ha!e s#aled ba#, the te#hnolog" to ensure as man" people as possible #ould bro)se the site- Instead* the" fo#used on ad!ertising the brand and not the less glamorous* but !ital* areas of brand+building* su#h as #reating a positi!e end+to+end #ustomer e(perien#e and ma,ing ea#h #ustomer #onta#t pleasurable and memorable* and ensuring goods are a!ailable and deli!ered as promised- As a result* the" )ere unable to build a #riti#al mass of bu"ing members needed to generate re!enue to offset the steep set+up #osts-

CASE STUD=I EBa

CO'PAN= OVERVIE: EBa" is the )orld/s largest person+to+person online trading #ommunit" and is one of the fe) Internet #ompanies that are profitable- EBa" effe#ti!el" #reated a ne) business model ne!er before possible 4 effi#ient one+to+one trading in an au#tion formatIndi!iduals use eBa" to bu" and sell items in more than %*$?? #ategories* from no!elties and antiques to ele#troni#s and to"s- Sellers pa" a nominal fee for pla#ing an item up for

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sale* and eBa" re#ei!es a transa#tion fee that ranges from >-B&9 to &9 of the final sale pri#e on an" item sold- The bu"er and the seller )or, out the logisti#s of the transport 5e-g- shipping* pa"ment6 bet)een themsel!es* and eBa" ne!er ta,es possession of the item being sold* or the pa"ment for the item + remo!ing the need for in!entor"* transportation and other o!erhead #osts- Sin#e its laun#h in September >88&* the eBa" #ommunit" has gro)n to in#lude more than >? million registered users* )ith the number of unique dail" !isitors setting a re#ord of >-03B million in Fanuar" B???- There are o!er half a million ne) au#tions* and %&?*??? ne) items =oining the :for saleG list e!er" B% hoursVALUE PROPOSITION eBa" offers #onsumers an effi#ient* B% hour a da"* global trading pla#e for bu"ing and selling personal items in an entertaining au#tion format- This is a ne) mar,et + the #losest thing in the offline )orld is trading forums su#h as #lassified ads* #olle#table sho)s* garage sales* flea mar,ets and au#tions- People per#ei!e the au#tion format to offer better pri#es* and eBa" pro!ides added !alue through its #on!enien#e* e(tensi!e sele#tion and geographi#al rea#h* )ith emphasis being pla#ed on its unique #ommunit" feel and #ulture- A##ording to Meg .hitman* 1EO of eBa"* :at its core, eBay is not about auctions.

Auctions are an enabler. Auctions make it fun. Auctions represent a platform. But eBay is really about a uniHue sense of community that eBay users are creating for themsel%esG SOURCES OF VALUE J THE 7C$ FRA'E:ORK A##ording to Meg .hitman* : the first brand,building strategy that we ha%e is to ha%e a great customer e$perience. Still the %ast maIority of our new users come from word,of, mouth. And you only get word,of,mouth if you ha%e a great customer e$perience. So in brand,building Iob 0o. A is ha%ing a great customer e$perienceJ1 deal )ith ea#h other* as the" rarel" deal dire#tl" )ith the #ompan"nli,e the pre!ious #ase studies dis#ussed* the eBa" #ustomer e(perien#e is based on ho) their #ustomers

0&

Convenience The site enables sellers to list items for sale and bu"ers to bid on items of interest using eBa"/s full" automated* topi#all" arranged* eas"+touse online ser!i#e- eBa" has also e(panded to a##ommodate a##ess through )ireless de!i#es for added #on!enien#enli,e most )ebsites that simpl" post #ontent* eBa"/s site has to pro#ess thousands of li!e bids simultaneousl"* )hi#h is mu#h more demanding on the s"stem* in#reasing the ris, of outages- eBa" had a :)a,e up #allG in Ful" >88'* )hen the )ebsite #rashed for 3 hours* angering hundreds of thousands of eBa" users* and sin#e* the" ha!e #ontinuall" in!ested in s"stem #apa#it"Content 1ontent is primaril" user generated through the items listed for sale- This #ontributes to the #ommunit" feel* and adds to the e(perien#e and the dis#o!er" of the au#tion pro#essOther #ontent in#ludes the banner ads* )hi#h are narro)l" targeted on rele!ant sub=e#ts su#h shipping and transport #ompanies and pa"ment methods to aid usersCustomisation eBa" pro!ides *y eBay )hi#h allo)s users to #ustomise the interfa#e* and is #onsidered b" man" users as one of the best features on the )ebsiteCommunity eBa" attributes mu#h of its su##ess to a strong sense of #ommunit" among its users- 2or man" /eBa"ers+/ a s eBa" users refer to themsel!es + eBa" represents more than =ust a pla#e to bu" and sell goods- It is a pla#e )here people #an meet )ith similar interests* dis#uss topi#s the" #are about* and share information- To en#ourage this sense of #ommunit"* eBa" offers its users #ategor"+spe#ifi# #hat rooms* bulletin boards* a monthl" ne)sletter* e+mail* a :gi!ing +boardG for #haritable donations to user +identified #auses- In addition* the #ommunit" spirit and personal relationships also trans#end the online e(perien#e* and there are se!eral reports of eBa" users !a#ationing together* )or,ing

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together and helping ea#h other offline- eBa"/s #ommunit" has a distin#t #ulture based on trust* respe#t* autonom"* empo)erment and equalit"Connectivity eBa" has #reated an affiliate net)or,* lin,s to high traffi# sites* banner ads and lin,s to supporting ser!i#es su#h as pa"ment options and transport #ompanies to help #ustomers #oordinate the logisti#s- eBa" also engaged in mar,eting partnerships* the largest of )hi#h )as )ith AOA* but the" ha!e other partnerships )ith o!er >&? )ebsites of !ar"ing s#ales- The" also introdu#ed a Power Sellers Programme 5lo"alt" s#heme6 )hi#h gi!es spe#ial benefits and pri!ileges to hea!" usersCustomer Care eBa" #ontrols neither end of the transa#tion* and the users/ e(perien#e on eBa" is more dri!en b" the seller or bu"er than b" eBa" itself- As su#h* eBa" has in!ested in #ustomer #are and support to ensure people #ondu#t safe transa#tions- eBa"/s approa#h to #ustomer #are has e!ol!ed o!er time- During the first t)o "ears* eBa" emplo"ed a HremoteH #ustomer support model* in )hi#h the #ompan" hired a#ti!e* ,no)ledgeable* and respe#ted members of its o)n user #ommunit" to ser!e as #ustomer support representati!es- These people )or,ed from their homes* ans)ering e+mails and responding to questions posted on the site/s bulletin boards-

Communication eBa" maintains #lose #ommuni#ation )ith its members- The" en#ourage members to ta,e a#ti!e role in the site and to pro!ide feedba#, and ad!ise them of and problems through the >eedback >orumBRANDBBUILDING STRATEG= The ma=orit" of eBa"/s users ha!e been attra#ted through )ord+of+mouth* as a result of the high qualit" e(perien#e it pro!ides- Earl" on* eBa" identified that B?9 of the users represented 3?9 of the !olume of the site 53?LB? rule6- Based on this* the" de#ided to

00

target their mar,eting efforts on these hea!" users* )ho tended to be serious #olle#torsAs a result* eBa" de#ided that it )ould not enter into ma=or portal ad!ertising deals in the short term* and instead fo#us on grassroots mar,eting initiati!es through print ad!ertising in !erti#al publi#ations 5e-g- *ary Beth;s Beanie &orld* in trade sho)soll +ollector6 and appearan#e

CASEI GAP
CO'PAN= OVERVIE: 7ap opened its first store in San 2ran#is#o in >8'8* and toda" it is the $'th most !aluable brand in the )orld- The 7ap offers a balan#e of modern and seasonal st"les of #lothing* from =eans and T+shirts to ,ha,is and =a#,ets- Its rea#h e(tends a#ross more than >*3?? stores in the S* 1anada* I* 7erman" and Fapan- This su##ess is largel" due to their simple formula 4 : to deli%er style, ser%ice and %alue to e%eryone1 - In late >880* 7ap started selling items online + an earl" #on!ert to the then+re!olutionar" idea of #lothes retailing on the Internet- 1urrentl"* online sales are onl" a!ailable to S #ustomers* and are still relati!el" small #ompared to 7ap/s P8 billion in annual sales* ho)e!er* the gro)th prospe#ts are enormous- 7ap/s online sales tripled in >883 alone* and sales in >888 amounted to P3? million* up from PB? million in >883- E!en the #ollapse of the global Dot#om industr" in middle B??? sho)ed a !er" little effe#t to 7ap-#om

VALUE PROPOSITION 7ap/s simple* standard st"les are )ell suited to online shopping* and 7ap online pro!ides a##ess to the full range of items at 7ap* 7apIids* and Bab"7ap* from shirts to a##essories and hard+to+find si@es- In addition* 7ap online e(ploits the a##essibilit" and #on!enien#e of the Internet* to pro!ide #ustomers )ith greater #on!enien#e and optionsA##ording to Feanne Fa#,son* head of 7ap Online* :t his is about being clicks,and, mortar, letting customers access the Gap brands, whether in the store or onlineAD1 SOURCES OF VALUE J THE 7C$ FRA'E:ORK

03

In terms of the 01s frame)or,* 7ap Online primaril" fo#uses on Convenience* Content* and Customer Carenli,e other #ompanies that transform from :bri#, and mortarG to #"ber* the e(tensi!e integration of 7ap/s online and offline a#ti!ities are #learl" e!identEisiting the gap-#om store one immediatel" noti#es the #onsisten#" bet)een the online and retail stores* from the blue and )hite #olour s#heme to the eas"+to+shop format + ma,ing !isual referen#es to its offline roots- Mi#hael M#1adden* E(e#uti!e Ei#e President of 7lobal Mar,eting* des#ribes the #ompan"/s brand personalit" as d:irect and straightforward ........%ery easy, %ery efficient1 AE- This personalit" is reinfor#ed online through the simple stru#ture and la"out* ma,ing it convenient* and eas"+to+use- The site also offers sharp graphi#s* but pro!ides #ustomers )ith the option of !ie)ing te(t+onl"* ma,ing na!igation e!en faster- 7ap-#om/s content #onsists of detailed information on its full range of produ#ts* allo)ing shoppers to #ontrast different #uts and st"les- The site/s !irtual st"le feature also allo)s #ustomers to mi(+and+mat#h #ombinations of #lothing* and #ustomers #an !ie) their latest TE ad!erts for bu"ing inspiration* as )ell as sample all of the latest shades of fingernail polish on a !irtual hand* )hi#h )ould not be possible in the storenli,e the #ase of Boo-#om* 7ap/s simple* standard st"les are )ell suited to online #lothes shopping* and goods bought online get returned at the same rate as store pur#hases + as most 7ap online shoppers ha!e a good idea of ho) 7ap #lothes fit- In order to integrate its offline and online operations and logisti#s* 7ap made a de#ision to #harge sales ta( on online sales- B" doing so* #ustomers #an return goods pur#hased online to their neighbour hood store* )ithout #ausing #ompli#ations BRANDBBUILDING STRATEG= J E<TENSIVE INTEGRATION 7ap-#om has been able to pigg"+ba#, on The 7ap/s offline ad!ertisements 5in TE* Maga@ines* billboards* et#-6 that also promote the online store- In addition* it is full" le!eraging its offline presen#e to build a)areness* b" displa"ing the RA 5)))-gap-#om6 in store )indo)s )ith the slogan :surf-shop-ship 1 * on #ounter #ards* on shopping bags and e!en on the #ash register* )hi#h displa"s : Shop online at www.gap.comK on the displa" s#reens bet)een transa#tions- Store #ler,s are also trained to loo, for produ#ts online for their #ustomers if the store does not ha!e them in sto#,* or to refer shoppers to 7ap/s )ebsite- In #ertain high traffi# 7ap and 7ap Iids stores* the

08

retailer has installed :&eb lounges1 that lure bu"ers )ith #omfortable #ou#hes and terminals hoo,ed up to 7ap-#om- To #on!ert )al,+in shoppers to #"bershoppers* 7ap has held in+store #ampaigns to get #ustomers to submit their e+mail addresses* b" offering a >?9 dis#ount and free shipping on their first online pur#hase- These efforts doubled the si@e of 7ap/s e 4mail database* pro!iding a useful )a" to dire#tl" rea#h #ustomers- Most of 7ap/s online traffi# is generated b" le!eraging its ph"si#al presen#eJ ho)e!er* 7ap has also supplemented this )ith online promotionsD +In August >888* 7ap se#ured a $+"ear #ommer#e and mar,eting agreement )ith AOL* that gi!es 7ap more !isibilit" on the Internet b" lin,ing to the )orld/s largest online shopping destination $D /o6LAOL mar,etpla#e- +7ap-#om has lin,s )ith CD"o+ to #ross promote )ebsites- The idea emerged as 7ap )as flooded )ith e+mails form #ustomers as,ing ho) the" #ould bu" a re#ording of the musi# pla"ed in 7ap TE #ommer#ials- +7ap-#om has also #reated an affiliate programme en#ouraging sites to establish lin,s to gap-#om in return for a &9 #ommission on e!er" sale referred through the siteCONCLUSION 7ap-#om is an e(ample of su##essful #rosso!er mar,eting- .ith their brand a)areness and net)or, of retail outlets* 7ap had a signifi#ant ad!antage o!er pure online pla"ers in attra#ting #ustomers and building #riti#al mass- Pure online pla"ers ha!e to in!est hea!il" in logisti#s* )hereas established #ompanies* su#h as 7ap* ha!e alread" established the ba#,+end operations and #an use them as the #ornerstone of their online business- The Internet* on the other hand* pro!ides e(isting #ustomers )ith added !alue through the #on!enien#e of pur#hasing online* and #an also pro!ide a##ess to different #ustomer segments )ho ma" not usuall" bu" the produ#ts at all + thereb" in#reasing the #ompan"/s rea#h- B" aggressi!el" mar,eting both the stores and the )ebsite* and allo)ing ea#h to le!erage the strengths of the other* 7ap has been able to signifi#antl" strengthen their brand+#ustomer relationship* )hile reaping the benefits of lo) #ustomer a#quisition #osts and e(tended rea#h- A ,e" fa#tor has been 7ap/s #onsisten#" and abilit" to deli!er the same le!el of ser!i#e qualit" that is e(pe#ted from the brand* thereb" reinfor#ing its brand identit"- This t"pe of seamless integration and s"mbioti# relationship is #riti#al in building su##essful :#li#,s +and+mortarG brands-

3?

> :CahooO + The 1ompan"* The Strateg"* The Sto#,G + Business &eek* September 0* >883 5)))-business)ee,-#om6 B :CahooO 2orges Strong Brand .hile Adding Meat" 1ontentG + Ad%ertising Age* Ma" $* >888 $ .illis* 1-* :Does Ama@on-#om Reall" MatterQG + >orbes* April '* >888 % ;a@leton* A-* :Feff Be@osD ;o) he Built a Billion +Dollar Net .orth Before his 1ompan" E!en Turned a ProfitG* The &eek* Ful" B??>& ;a@leton* A-* :Feff Be@osD ;o) he Built a Billion +Dollar Net .orth Before his 1ompan" E!en Turned a ProfitG* The &eek* Ful" B??>' .arner* B-* :Mar,eters of the CearD Feff Be@os* Eolume Dis#ounterG 4 The &eek* O#tober >B* B??? 0 Ia=sa Aeander* 1MO of Boo-#om* as #ited in :Boo-#om opens its !irtual doorsG + *arketing &eek* Fune >?* >888 3 .ard* M-* :2rom Boo-#om to Boo-goneG + BB+ 0ews .nline* Ma" >3* B??? 5ne)s'-thdo-bb#-#o-u,6 8 Inter!ie) )ith Meg .hitman b" Ainda ;imelstein as #ited in :. hat/s Behind the Boom at eBa"G L Business &eek* B>st Ma" >888 5)))-business)ee,-#om6

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DATA ANALYSIS AND INTERPRETATIO N

DATA ANAL=SIS AND INTERPRETATION Ta1l# , :/at 6#o6l# %o o"l!"#@ SNO> B $ PARTI1 AARS E mailing 7eneral Information Surfing No- O2 RESPONDENTS 38 0> 3' PER1ENTA7E 38 0> 3'

3B

% & ' 0 3 8 >? >> >B >$ >% >& >'

Reading Interest Produ#t Nueries Tra!el Business Entertainment Pur#hasing Ne)s Fob Portals 1hat ;ome .or, Ban,ing Sto#, Nuoting

%B $3 03 &% '' 0' '& &' %& &> $% %& >?

%B $3 03 &% '' 0' '& &' %& &> $% %& >?

No. ./ )ESP.NDENTS 1# #$ $# 7$ $$ 1 E mailin 7 S*r&in $ Prod*ct 9*!ri!s 9 Ent!rtainm!nt 12 :o+ Portals 1# Ban>in 1 )!adin 7 Tra0!l 1% P*rchasin 17 ;hat 1$ Stoc> 9*otin #1 76 1# 1% #1 71 69 71 6$ 12 76 2 8!n!ral In&ormation # Int!r!st 6 B*sin!ss 11 N!-s 11 <om! =or>

I"t#r6r#tat!o"I 2rom the abo!e table* it is #lear that the ma=orit" of respondents ha!e surfed on Internet to #he#, their e+mail 58>96* sear#hed for general information 50396* and attended re#reational a#ti!ities 5reading* surfing* hobbies* #hatting* entertainment* et#6- Out of >?? respondents* onl" $& logged on #"ber #ompanies for pur#hasing* and onl" >3 had the real intention to bu" or sell online-

3$

Ta1l# - Ho+ &a" actuall carr!#% 1u$!"#$$ tra"$act!o"$ !" !"t#r"#t SNO. , PARTICULARS =ES NO No. OF RESPONDENTS ,2 82 PERCENTAGE ,2M 82M

3%

No. OF RESPONDENTS

1YES

2 NO

I"t#r6r#tat!o"I It is e!ident from the abo!e table that the minorit" >&9 of the respondents has a#tuall" bought or sold on Internet- The other ma=orit" 3&9 surfed on the .orld .ide .eb for other a#ti!ities 5reading* surfing* ;obbies* #hatting* entertainment* produ#t sear#hing* et#6- Ad!ertisement should be aimed at this small potion of #ustomers rather than pursuing the )hole !ast mar,et-

Ta1l# . Na&# of c 1#r co&6a"!#$ ou actuall %#al +!t/ No- O2 RESPONDENTS 3 ? >B

SNO- PARTI1 AARS > Ama@on B Boo-#om $ Cahoo

PER1ENTA7E BB9 ?9 $$9 3&

% EBa" & 7ap-#om ' Others Total

>& ? > $'

%B9 ?9 $9 >??9

% 1

6 %

1#

12

1 'ma?on

2 Boo.com

7 Yahoo

1 E+ay

# 8a,.com

$ .th!rs

I"t#r6r#tat!o"I The abo!e table sho)s the degree of popularit" and #redibilit" among different brands- Among fi!e respe#ti!e brand names* eBa" has got the biggest number of transa#tions* follo)ing b" CahooO and Ama@on-#om Boo-#om and 7ap-#om got none-

Ta1l#I3 Nu&1#r of #B 6urc/a$#r +/o +a"t to co&# 1ac; for futur# tra"$act!o". SNO- PARTI1 AARS > Ces B No Total No- O2 RESPONDENTS $% B $' PER1ENTA7E 8%-%?9 &-&?9 >??9

3'

71

1 Y!s

2 No

I"t#r6r#tat!o"I Among the real e+pur#haser* the ma=orit" of 8%9 )ants to #ome ba#, to respe#ti!e #"ber #ompanies the" dealt )ith before- It sho)s the solidit" of business transa#tions and relations on the Internet- On#e #ustomers are satisfied* the" intend to ,eep the ne(us )ith the #ompan" the" ,no)* rather than shifting from #ompan" to #ompan"- It highlights the signifi#an#e of ,eeping up )ith #ustomer<s standard and per#eption right in the first transa#tion 5the moment of truth6-

Ta1l#I2 Sta"%ar%$ of 0oo% o"l!"# co&6a" SNO- PARTI1 AARS > B $ Brand 1ost 1on!enien#e No- O2 RESPONDENTS B' >3 B3 PER1ENTA7E B'9 >39 B39

30

% & ' 0

Means of Pa"ment Eariabilit" Offers Others Total

>? >? & $ >??

>?9 >?9 &9 $9 >??9

1% 1%

2$

26

16

1 Brand 1 M!ans o& Paym!nt 7 .th!rs

2 ;ost # (aria+ility

7 ;on0!ni!nc! $ .&&!rs

I"t#r6r#tat!o"I Among the abo!e fa#tors 5brand* #ost* #on!enien#e* means of pa"ment* !ariabilit" of goods and ser!i#es* promotion and dis#ount6* brand name holds the most signifi#ant position* )ith $? out of >?? respondents #laimed that is )as the most important fa#tor to a #ompan"- The ne(t important fa#tors are #on!enien#e 5>'96* promotion and dis#ount 5>&96* #ost 5>$96* !ariabilit" 5896* and means of pa"ment 5&96-

Ta1l#I 4 Factor$ +/!c/ %#t#r&!"# +#1 1ra"% lo alt .

SN.. 1 2 7 1 P')TI;U@')S Usa ! /ast r!s,ons! /amiliarity )!l!0!ncy No. ./ )ESP.NDENTS 77 2$ 2% 17 PE);ENT'8E 77A 2$A 2%A 17A

33

Total

1%%

1%%A

17 77

2%

2$

1 Usa !

2 /ast r!s,ons!

7 /amiliarity

1 )!l!0!ncy

I"t#r6r#tat!o"I The abo!e table sho)s the ,e" fa#tors that ensure )eb brand lo"alt"Out of >?? respondents* $0 #laimed that the Ease of use M na!igation is the most important element 5$096* )hereas B' ga!e their !ote to 2ast response time 5B'96* B? to 2amiliarit" 5B?96* and >0 supported Rele!ant M a##urate information 5>096-

Ta1l#I 7 Factor$ +/!c/ $to6$ +#1 1ra"% lo alt .

No. ./ )ESP.NDENTS 2$ 21 22

SN.. 1 2 7

P')TI;U@')S .*t dat!d in&ormation Slo- ,roc!ssin tim! Sit! do-nloadin

PE);ENT'8E 2$A 21A 22A

38

Poor c*stom!r s!r0ic!. Total

26 1%%

26A 1%%A

26

2$

22

21

1 .*t dat!d in&ormation 7 Sit! do-nloadin

2 Slo- ,roc!ssin

tim!

1 Poor c*stom!r s!r0ic!.

I"t#r6r#tat!o"I The abo!e table sho)s the ,e" fa#tors that destro" )eb brand lo"alt"Out of >?? respondents* B' #laimed that outdated information is the ,e" element that demolishes #ustomers< belief 5B'96* )hereas B% attributed to slo) response time 5B%96* BB to Site do)ntime 5BB96* and B3 to Poor #ustomer ser!i#e 5B396-

Ta1l#I 8 T/!"0$ 6#o6l# 6urc/a$# o"l!"#.

SN.. 1 2 7

P')TI;U@')S ;ons*ma+l! @*B*ry it!ms <om! r!lat!d

No. ./ )ESP.NDENTS 7# 27 2#

PE);ENT'8E 7#A 27A 2#A

8?

1 # $ 7 6

8arm!nts '*tomo+il!s )!al Stat! 'ntiC*iti!s .th!rs

$7 12 16 71 12

$7A 12A 16A 71A 12A

71 16

12 7#

12 27 $7 2#

1 ;ons*ma+l! # '*tomo+il!s

2 @*B*ry it!ms $ )!al Stat!

7 <om! r!lat!d 7 'ntiC*iti!s

1 8arm!nts 6 .th!rs

I"t#r6r#tat!o"I 2rom the abo!e table* )e #an see the tenden#" of )hat people )ant to bu" on Internet- Out of >?? respondents* most of them 50&9 M '0 96 #hose #onsumable and garments respe#ti!el"- .hereas goods )ith high !alue li,e real estate* !ehi#les* and lu(ur" )ere hardl" #hosen-

Ta1l#I * Ra";!"0 t/# 6o6ular!t of c 1#r co&6a"!#$. Ra"; ,$t -"% Co&6a" =a/oo> EBa
8>

.r% 3t/ 2t/

A&a?o" Ga6.co& BOO.co&

I"t#r6r#tat!o"I 2rom the table No-$* )e #an see eBa" has got the biggest number of transa#tions among the lot* follo)ing b" CahooO and Ama@on-#om- But )ith regard to le!el of re#ognition and a)areness* CahooO trans#ends eBa" and Ama@on-#om- It pro!es ho) effe#ti!e CahooO is in #reating #ommunit" a#ti!ities and spreading publi# relationship* in#luding !iral effe#t and )ord+of+mouth-

Ta1l#I ,5 Do ou r#a% c/a!" or 1ul; &a!l$@

SN.. 1 2

P')TI;U@')S Y!s No Total

No. ./ )ESP.NDENTS 16 62 1%%

PE);ENT'8E 16A 62A 1%%A

8B

16

62

1 Y!s

2 No

I"t#r6r#tat!o"I 1hain+mails and bul,+mails are often used to get #ustomer a)areness and attention- But as time goes b"* bul,+mails do not ha!e the same signifi#an#e li,e before* and #ustomers usuall" refer bul,+mails as :garbageG and tr" to delete them )ithout #asting a single glan#e at- It is #alled as :self +prote#tion rea#tionG- 1"ber #ompanies should de!elop other ,inds of promotion and brand building rather than rel"ing on #hain+mails-

8$

MAJOR FINDINGS

FINDINGS AND RECO''ENDATION

8%

FINDINGS K# factor$ t/at co"tr!1ut# to 1u!l%!"0 a $ucc#$$ful o"l!"# 1ra"%

There is no one+si@e+fits+all solution for building a su##essful brand on the Internet* ho)e!er* the e(tensi!e resear#h and in+depth #ase studies pro!ided in this dissertation indi#ate #ertain #ommon underl"ing #hara#teristi#s )hi#h #an be summari@ed as follo)sD A Co&6#ll!"0 Valu# Pro6o$!t!o"

Su##essful online brands are e(ploiting e!er" #apabilit" offered b" the Internet to deli!er #ompelling !alue propositions that appeal to #ustomers* b" offering more !alue than attainable through traditional :bri#,s +and+mortarG establishments- The" are pro!iding greater #on!enien#e 5B%(06* lo)er pri#es* )ider sele#tions* and a##ess to more information on the produ#ts or ser!i#es being pro!ided* and enhan#ing this )ith la"ers of Added+!alue through the /01s/+ 1on!enien#e* 1ontent* 1ustomisation* 1ommunit"* 1onne#ti!it"* 1ustomer 1are and 1ommuni#ation- Su##essful brands re#ognise that the !alue proposition must more than #ompensate for the loss of in+person #onta#t U"!Du# Po$!t!o"!"0 Co"c#6t F D!$t!"ct Bra"% I&a0#

Strong brands are de!eloping unique positioning #on#epts* to distinguish themsel!es from #ompetitors- CahooO/s su##ess #an be largel" attributed to its unique positioning strateg" and distin#t image that appeals to its target mar,et- B" distinguishing their offering and fo#using on unique sour#es of !alue+added* brands are harder for #ompetitors to emulate- In addition* these #ompanies must ha!e an inherent understanding of their brand identit" and #ore !alues* to maintain #onsisten#"* as )ell as Determine ho) far the brand #an be meaningfull" stret#hed to other produ#ts and mar,et segments* before it fra#tures-

A H!0/ 9ual!t O"l!"# E(6#r!#"c#

8&

Strong Internet brands are those that #reate a high qualit" engaging online #ustomer e(perien#e- The 01s frame)or, allo)s #ompanies to deli!er a tangible #ustomer e(perien#e- Su##essful online brands meet the demands inherent in ea#h of the 01 #ategories* b" ingraining con%enience and ma,ing the site eas"+to+use* qui#,+to+load and eas"+to+na!igate* deli!ering #ompelling content* customising the e(perien#e* de!eloping a community feel* ma,ing connecti%ity eas"* integrating customer care* and establishing t)o+)a" communication- B" pla#ing emphasis on different /1s/* the" are differentiating their e(perien#e from those of #ompetitors- A )ell e(e#uted #ustomer e(perien#e that satisfies #ustomers* results in higher brand equit" I"t#"$# Cu$to&#r Focu$

Aeading online brands ha!e an intense #ustomer fo#us* and de!elop a detailed understanding of their #ustomers/ needs- These brands are a##umulating ,no)ledge about #ustomers* through past transa#tions and soli#ited input* and b" fo#using on #ustomer needs* are le!eraging this #ustomer ,no)ledge 5learning6 to nurture relationships 5relate6* b" pro!iding better ser!i#es* #ustomisation and #ustomer #are- 1ustomer fo#us builds trust and #redibilit" that is #entral to de!eloping a strong brand #ustomer relationship D#l!)#r!"0 o" t/#!r #BPro&!$#$

2ulfillment and deli!ering on e+promises is the a#id test of online brands- The su##essful brands are those )ho are in!esting hea!il" in logisti#s* distribution #entres* and #ustomer #are to ensure a #ompletel" satisf"ing end+to+end #ustomer e(perien#e- In doing so* the" are #ulti!ating a reputation for e(#ellen#e* )hi#h builds #onfiden#e and trust that not onl" enti#es #ustomers to do repeat business )ith the #ompan"* but leads them to spread positi!e )ord+of+mouth* attra#ting other #ustomers to the site-

8'

Stro"0 Co&&u"!cat!o"$ Pro0ra&&#

The ,e" Internet brands ha!e made ma=or #ommitments to building A)areness and ha!e de!eloped multifa#eted* integrated #ustomer a#quisition Strategies* ranging from online methods to traditional offline media- The" are targeting their promotions to attra#t qualit" #ustomers and to ,eep #ustomer a#quisition #osts do)n- Nualit" #ustomers )ho are hea!" users of the brand are important as the" not onl" offset the #ost of #ustomer a#quisition* but also pro!ide added !alue to the brand #ommunit"- Properl" or#hestrated :guerrilla mar,etingG plo"s #an also be effe#ti!e in building a)areness and reinfor#ing brand image Strat#0!c All!a"c#$

Rather than doing e!er"thing on their o)n* leading brands ha!e fo#used on building strong partnerships and allian#es* parti#ularl" to se#ure #ontent and )iden rea#h to ne) #ustomer segments and ni#hes- As a result* these #ompanies are #reating e!en stronger !alue propositions* offering #ustomers the best in qualit"* !ariet"* #ontent* and #on!enien#e- Allian#es and partnerships pla" an important role in a#hie!ing speed and momentum* and b" partnering )ith )ell+,no)n brands* a #ompan" #an le!erage the partner/s brand and reputation to reinfor#e its o)n- Allian#es )ith leading portals and popular sites are important to generate traffi# and brand !isibilit"* and e$clusi%e allian#es #an lo#, out #ompetitors from !aluable #ontent or online real estate- The most su##essful partnerships are s"mbioti# mat#hes* )hereb" ea#h part" benefits from the other/s e(pertise or s,ills* )hile ultimatel" benefiting the end+#ustomers F!r$tB'o)#r A%)a"ta0#

Most of the su##essful online brands identified a mar,et opportunit" earl" and mo!ed qui#,l" to #apitalise on the potential the" sa)- A first mo%er ad!antage is an important asset for an online brand- B" getting to mar,et earl"* the #ompan" benefits from the bu@@* and traffi#* that #omes )ith inno!ation* and it #an a#quire #ustomers )hile it is still ine(pensi!e to do so-

80

It lo#,s up important #ontent and distribution partnerships* and it aligns itself )ith the most influential !enture #apital sour#es- 7etting to mar,et qui#,l" #an pro!ide an Internet #ompan" )ith signifi#ant momentum and a !aluable boost o!er the #ompetitionThe #hallenge then lies in ,eeping up the momentum- Man" strong online brands )ere also early,mo%ers on the Internet* and benefited from additional h"pe* and e(tensi!e )ord+of+mouth due to its no!elt"- As Internet penetration e(ploded* these )ell+publi#i@ed brands also too, off-

83

RECOMMENDATIONS

RECO''ENDATIONS
88

The era of Internet brings a totall" ne) approa#h to building a brand name- Aet<s ha!e a glan#e at the different routes to brand building on the ne) d"nami#s of brands-

D!ff#r#"t a66roac/#$ !" 1ra"% 1u!l%!"0-

7i!en that the #ommer#ial Internet onl" began to ta,e off in >88%* there has been a limited time hori@on to e!aluate the durabilit" of Internet brands- In addition* )ith the emergen#e of )ireless a##ess and ne) platforms* ne) opportunities and d"nami#s )ill emerge as #ompanies de!elop inno!ati!e )a"s of a#quiring #ustomers* building relationships and satisf"ing needs- Therefore* ongoing resear#h )ould be ne#essar" to build on the findings of this dissertation- Ne!ertheless* the author belie!es that the #ore #on#epts and ,e" fa#tors identified that #ontribute to su##essful online brands are li,el" >??

to persist- Brands and brand+building tools tend to be asso#iated )ith #onsumer mar,ets* ho)e!er* the" are equall" important in business mar,ets- As su#h* the #on#epts* tools and ,e" fa#tors outlined in this dissertation are also appli#able to business mar,etsNe!ertheless* an in+depth anal"sis* dra)ing on se!eral #ase studies from business mar,ets* )ould represent an e(#iting opportunit" for further resear#h- ;a!ing established a strategi# perspe#ti!e on building online brands* this dissertation )ould benefit from #omplementar" in+depth resear#h in the so#ial and ps"#hologi#al d"nami#s of the Internet and its impa#t on #onsumer beha!iour- Based on his o)n resear#h and sur!e"* resear#her has re#ognised the often used brand promotion method* their popularit"* and their respe#ti!e effe#ti!eness-

POPULARIT= AND HO: EFFECTIVE ARE BRAND BUILDING 'ETHODS

MET<.D Bann!rs Emails P*+lic )!lation Ma a?in!s S,onsorshi, N!-a,a,!r )adio Dir!ct Mail T!l!0ision .*tdoor 'd0!rtisin '&&iliat!d Pro ramm!

P.PU@')ITY 69A 77A ##A 1#A 71A 72A 72A 7%A 7%A 17A 17A

E//E;TI(ENESS )'NDED /).M % to # 2.6 2.7 7.2 1.1 7.1 2.$ 7.1 7.1 1 7.7 1.7

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1%%A 6%A $%A 1%A 2%A %A Bann!rs S,onsorshi, T!l!0ision

69A 77A ##A 1#A 71A 72A 72A 7%A 7%A 17A 17A

Emails N!-a,a,!r .*tdoor 'd0!rtisin

P*+lic )!lation )adio '&&iliat!d Pro ramm!

Ma a?in!s Dir!ct Mail

2rom the abo!e table* it is #lear that some usuall" used promotion methods li,e banners and e+mail sho)ed little effe#t to)ards #ustomers- Therefore* to enhan#e a)areness and brand image* #ompan" should in#rease the use ofD Aff!l!at# 6ro0ra&$I )ith other alread"+re#ognised online #ompanies li,e CahooO* Ama@on-#om* or AOA- It is the )a" has been #hosen b" man" su##essful ones li,e 7ap-#om* or eBa" Pu1l!c r#lat!o" a"% out%oor act!)!t!#$-

2urther* there are some more suggestions from resear#her to #"ber 1ompanies regarding ho) to #reate a strong brand name on InternetD ;a!e a #redible logisti#s )ith a##eptable qualit" of goods and ser!i#e- Ma,e sure that the a!ailabilit" of goods and !ariabilit" of #ategories are ensuredBuild a simple )ebsite )ith humble graphi# and a##essible info- Site must be easil" used and na!igated- A!oid the mista,e b" Boo-#om of building a )ebsite that requires a po)erful #omputer #onfiguration and a )ide Internet run)a"- The result is )ebsite is too slo) to load* and leads to nothing but frustration of #ustomers Suppl" rele!ant and a##urate info-

>?B

.hen a #ustomer posts his or her mail to as, some question )ith regard to produ#t info sear#h* feedba#, must be gi!en )ithin %3 hours.hen using #redit #ard as the most popular means of pa"ment* #ompan" must ensure the pri!a#" of #ustomer- Be)are o ha#,ers at the top most le!elDon<t tr" to dig on !aluable items li,e antiquities* lu(ur"* or real estate- Be#ause its parti#ular ris, and #onfiguration* an online #ompan" should fo#us on small !alue items li,e boo,s* #onsumable* garments and foot)ear* upholster"* #igarette and al#ohol* et#-

>?$

CONCLUSION

>?%

CONCLUSION
Mar,eting strategies for brand building on internet has be#ome a ma=or area of interestThe resear#her #ould ha!e better understanding of brands and internet as a #arrier of brands- A detailed stud" of the Brands and internet has been done to a##omplish this ob=e#ti!e- Strategi# Brand Management* :Noel IopfererG and other arti#les ha!e gi!en important dimensions in understanding the brandIt )as found that internet is #hanging the brand building en!ironment po)erfull"- The tremendous opportunit" opened b" internet and d"nami#s of it has for#ed people to utili@e inno!ati!e tools and strategies for brand building on internet- Strategi# allian#e* tie ups and intense #ustomer fo#us is turning out to be fe) of the ma=or fo#us areas in brand buildingThe dissertation helped in finding #ertain ,e" fa#tors and #hara#teristi#s that help in de!elopment of su##essful internet brands- Important of them are a 1ompelling !alue Proposition* unique positioning* distin#t brand image strateg" and relationship building intera#ti!e strategies- In this fast gro)ing global e#onom" internet is going to be #ru#ial fa#tor in an" organi@ations mar,eting strateg"- Mar,eting strategies identified from this dissertation )ill bring fo#us on ne#essar" strategies for internet brand building-

>?&

ANNEXURE

>?'

9u#$t!o""a!r#
ND>- .hat are the things "ou do on internetQ Reading and )riting email Sear#hing for general information Surfing Reading ;obbies Tra!el information Doing "our business L )or, Entertainment Pur#hasing Sto#, quotes Fob sear#h 1hatting Doing "our home)or, L assignment Au#tions Ban,ing Trading sto#,s

NDB- ;o) long "ou usuall" spend on Internet Aess than 0 hours per )ee, 3+>% hours per )ee, >&+B3 hours per )ee, B8 hours and abo!e

ND$- ;a!e "ou e!er #arried out "our business transa#tion5s6 on InternetQ Ces No ND%- If "es* name the #ompan" that "ou dealt )ith Ama@on-#om Boo-#om eBa"-#om 7ap-#om >?0

CahooO-#om Others

ND&- Do "ou )ant to #ome ba#, to those #ompanies for further transa#tionsQ Ces No '- A##ording to "ou* )hat isLare the most important element5s6 for a good online #ompan"Q Brand 1ost 1on!enien#e Means of pa"ment Eariabilit" of items Promotion M dis#ount Others

ND 0- A##ording to "ou* )hat is the ,e" to .eb brand lo"alt"Q Ease of use and na!igation 2ast response time 2amiliarit" Rele!ant and a##urate information

ND 3- A##ording to "ou* )hat is the ,iller of .eb brand lo"alt"Q Outdated information Slo) response time Site do)ntime Poor #ustomer ser!i#e

ND 8- Things "ou )ant to bu" online 1onsumables Au(ur" Interior 7arments M foot)ear Eehi#les Real estate Antiquities >?3

Others

ND >?- Ran, si( belo) #ompanies from > to ' in order of the most to the least re#ogni@ed brand CahooO-#om Ama@on-#om 7ap-#om Boo-#om eBa"-#om

ND >>- Do "ou usuall" read #hain mail or bul,+mailQ Ces No

ND >B- .hat ,ind of ad!ertisement normall" attra#ts "our attentionQ 1hain mail M bul,+mail Dire#t mail Tele!ision Ne)spapers Radio Buttons Banners Ads featuring gifts and dis#ounts

PERSONAL INFOR'ATION

ND >- .hat best des#ribes "our ageQ >&+>8 "ears B?+B% "ears B& "ears M abo!e ND B- Cou are aD nder graduate
>?8

 7raduate Post graduate

ND $- Are "ou a 1omputer and Internet AiterateQ Ces No ND %- .hat is "our professionQ Student 1omputer engineer 2a#ult" Businessman Others

If "ou )ish to add an" other remar,* please do so SSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSS SSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSS SSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSS SSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSS

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BIBLIOGRAPHY

>>>

BIBLIOGRAPH= :EBSITES
)))-ama@on-#om )))-at,earne"-#om )))-bain-#om )))-b#g-#om )))-boo-#om )))-business)ee,-#om )))-eba"-#om )))-ebusinessforum-#om )))-e#onomist-#om )))-forrester-#om )))-gap-#om )))-gapin#-#om )))-google-#om )))-interbrand-#om )))-m#,inse"quarterl"-#om )))-p)#global-#om )))-"ahoo-#om BOOKS AND 'AGAKINES

Business maga@ines M dailies in Bangalore as )ell as from o!erseasD Business .ee, Business .orld 1omputer .orld The E#onomist The E#onomi# Times 2ar Eastern E#onomi# Re!ie)

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Sales and Mar,eting Management Pit#h Strategi# Management

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