Page 75 - DMGT506_CONSUMER_BEHAVIOUR

Consumer Behaviour

Notes

Caselet CEAT – Raising the Bar

n April 15, 2008, CEAT Ltd. (CEAT), part of the RPG Group and a major tire
manufacturing company, unveiled a new word mark brand, doing away with its
O25-year-old mascot, the rhino, and the tagline, 'Born tough'. The rebranding
exercise was carried out as part of a brand repositioning effort. The CEAT logo and the
tagline had been in use since 1983. While this tagline seemed to work quite well when
strength and durability were the only aspects that customers looked for in tires, it seemed
to have lost its relevance with the needs of both the primary customers (automobile
companies), and the end-consumers changing.
Recognizing this, the company repositioned CEAT from a brand that conveyed toughness
to one that was associated more with performance, style, and comfort. Therefore, they
decided to drop the 'Born Tough' logo as well as the rhino.

There was another reason for dropping the age-old rhino logo, even though it had high
recall. This was the general perception associated with the rhinoceros – that of an endangered
species – and the company did not want this perception to be extended to the brand as
well. It wanted a more modern and contemporary logo, which would go with its new
positioning in the market.
The letter "E"appeared distinct, without the upright stroke connecting the three horizontal
ones. Its red letter signified motion and movement. The "E"also represented the idea of
"raising the bar", as the brand tried to raise its performance standard and credibility in the
market. It also signified broadening of the company's capabilities, in terms of reach across
segments and geographies. The red lines of the "E"gave the logo a very young and modern
appeal, while the remaining letters were in blue, showing maturity and stability.

CEAT's new logo symbolizes not just our foundations but reveals an accent on the future."
The company planned to invest 400 millions on the entire campaign, with 100 millions
allocated for the first year.
Source: icmrindia.org

5.2 Consumer Imagery

An image is a total perception of something that individuals form by processing all the
information they are exposed to over time. Research indicates that consumers develop enduring
perceptions or images about brands, prices, stores and companies. These inferences are consumers’
beliefs about products or services. Consumers may associate an Omega or Rolex watch with
quality because of their advertising or word-of-mouth communications from friends.
Individuals develop a self-image of themselves and certain brands carry a symbolic value for
them. Some products seem to match this self-image of an individual while others do not. According
to Russell W Belk, consumers attempt to enhance or preserve their self-images by purchasing
products that they believe correspond to or agree with their self-images and avoid buying
products that do not fit their self-images.
Consumers also tend to buy from those outlets that seem to be consistent with their self-image.
Many large retail stores and chains in India have started focusing on the need to build their
identity to attract certain classes of consumers and create store loyalty among them.

70 LOVELY PROFESSIONAL UNIVERSITY