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Defining Brand

As per American Marketing Association


“Brand is a name, term, sign, symbol, or design, or a combination of them, intended to identify the goods
and services of one seller or group of sellers and to differentiate them from those of competition”.

According to Walter Lander, one of the greats of the advertising industry


“Simply put, a brand is a promise. By identifying and authenticating a product or service it delivers a pledge
of satisfaction and quality”.

“Brand = Mindset”
• The sum of all communications and services received by the consumer
• Resulting in a distinctive in their “mindset”
• Based on perceived emotional and functional benefits.

Brand Versus Product

PRODUCT: ANYTHING THAT CAN BE OFFERED TO A MARKET FOR ATTENTION, ACQUTION,


USE, OR CONSUMPTION THAT MIGHT SATISFY A NEED OR WANT.

A PRODUCT MAY BE :

A PHYSICAL GOOD: eg Automobile, Bread


A SERVICE: eg Airline, Bank
A RETAIL STORE: eg Supermarket, Mall
A PERSON: eg Politician, Entertainer
AN ORGANIZATION: eg NGO, Trade organization
A PLACE: eg Delhi, India
AN IDEA: eg Social, Political cause

A BRAND IS:

“More specifically, what distinguishes a brand form its unbranded commodity counterpart and gives it
equity is the sum total of consumer’s perceptions and feelings about the product’s attributes and how they
perform, about the brand name and what it stands for, and about the company associated with the brand”

BRAND CREATE COMPETITIVE ADVANTAGES WITH

1. EITHER EXCELLENT OR CONSISTENT PRODUCT PERFORMANCE. EG GILLETTE,


SONY,3M.
2. OR BY CREATING RELEVANT AND APPEALING IMAGES. EG COCA – COLA,
MARLBORO, CALVIN KLIEN
WHY DO BRAND MATTER

CONSUMERS

1. Identification of source of product


2. Assignment of responsibility to brand maker
3. Risk reducer
4. Search cost Reducer
5. Promise, Bond, or Pact with maker of product
6. Symbolic device
7. Signal of quality

MANUFACTURES

1. Means of identification to simplify handling or tracing


2. Means of legally protecting unique features
3. Signal of quality level to satisfied customers
4. Means of endowing products with unique associations
5. Source of competitive advantage
6. Source of financial returns

WHAT ALL CAN BE BRANDED?

1. PHYSICAL GOODS – KELLOG’S, KODAK, MARLBORO, SONY , BENZ, NESCAFE.


2. SERVICES – AMERICAN EXPRESS, BRITISH AIRWAYS, FEDERAL EXPRESS, STAR
NETWORKS
3. RETAILERS AND DISTRIBUTORS – WALMART, SHOPPER’S STOP, PLANET M
4. ONLINE PRODUCTS AND SERVICES – GOOGLE, YAHOO, AMAZON
5. PEOPLE AND ORGANIZATIONS – CINDY CRAWFORD, SACHIN TENDULKAR, UNICEF,
RED CROSS
6. SPORTS, ARTS AND ENTERTAINMENT – MANCHESTER UNITED, STARWARS, DDLJ
7. GEOGRAPHIC LOCATIONS – INDIA, USA, GOA
8. IDEAS AND CAUSES – WWF, AIDS

BUSINESS WEEK’S 25 MOST VALUABLE GLOBAL BRANDS

RANK BRAND 2001 BRAND VALUE


($ BILLIONS)
1. COCA COLA 68.95
2. MICROSOFT 65.07
3. IBM 52.57
4. GE 42.40
5. NOKIA 35.04
6. INTEL 34.67
7. DISNEY 32.59
8. FORD 30.09
9. MC DONALDS 25.29
10. AT&T 22.83
11. MARLBORO 22.05
12. MERCEDES 21.73
13. CITIBANK 19.01
14. TOYOTA 18.58
15. HP 17.98
16. CISCO SYSTEMS 17.21
17. AMERICAN EXPRESS 16.92
18. GILLETTE 15.30
19. MERRILL LYNCH 15.02
20. SONY 15.01
21. HONDA 14.64
22. BMW 13.86
23. NESCAFE 13.25
24. COMPAQ 12.35
25. ORACLE 12.22

WHAT IS BRANDING?

“Branding is business process of managing you trademark portfolio so as to maximize the value of the
experiences associated with it, to the benefits of your key stakeholders especially current and prospective”.

KEY STAKEHOLDERS:
Employees, Customers, Stock/Share Holders, Suppliers, Intermediaries, Opinion Leaders, Local
Communities, Purchasers and Licenses

BRAND CAN BE DEFINED ACCORDING TO FOLLOWING DIMENSIONS:

1. IT’S CENTRAL ORGANIZING THOUGHT – Defining it for internal and stakeholder use in one
sentence.
2. IT’S SLOGAN – defining it for use with customers in one sentence
3. IT’S PERSONALITY – what would it be like if it were a human being?
4. IT’S VALUES – what does it stands For/Against
5. IT’S TASTES PREFERENCES – what does it look like? What does it sound like? What does it likes
and dislikes
6. IT’S HERITAGE – what are the stories you tell about/ what sort of brand it is?
7. IT’S EMOTIONAL BENEFITS – how it avoids/reduces pain or increases pleasure
8. IT’S HARD BENEFITS – What does the brand offers to it’s customers in tangible, quantifiable
terms- features, advantages, benefits.

BRAND ELEMENTS

CRITERIA FOR CHOOSING BRAND ELEMENTS

1. Memorability – Easily Recognized and Recalled


2. Meaningfulness – Descriptive and Persuasive
3. Likeability – Fun and interesting, Rich visuals & Verbal imagery, Aesthetically pleasing
4. Transferability – Within and across product categories, across geographic boundaries and cultures
5. Adaptable – Flexible and Updateable
6. Protectable – Legally and Competitively
BRAND SYMBOL

They lead to:-


1. Awareness eg – Gattu for Asian paints
2. Association eg – Suraksha charka for Colgate
3. Likeability & Positive feelings eg Amul girl
4. Stronger memory eg – Devil of Onida

Brand symbol can be created across the following concepts:-


1. Non living characters eg – Muscleman of MRF
2. Animal eg – Tiger for Tiger Biscuits
3. Nature eg – Coconut tree of Parachute
4. Pack eg – Bottle of Coke
5. Things eg – Wheel in Wheel detergent
6. People eg – Babies for Farex
7. Geometric shapes eg – Maruti
8. Scenes eg – Liril waterfall
9. Monuments eg – Taj Mahal for Taj Mahal tea
10. Logo eg - Pepsi

BRAND CHARACTER

A living or non- living personality which can be associated with a brand. Eg – Doughboy of Pillsbury Atta.
(“belly poke” “giggle”)

Research Criteria
Fitness with name, slogan, associations, packaging, advertising, competitors, brand extensions, likeability,.

BRAND LOGO

Combination of shapes and colors, which creates an identity for the brand.

Elements of Logo:-
1. Brand name
2. Geometric shape
3. Color
4. Slogan
5. Font

Logo change:- eg LG, Dabur, Aditya Birla, Lakme.

The overall research process of Logo


1. Evaluation of Logo in isolation – Distinctiveness, likeability, comprehension, preference.
2. Evaluation of Logo on Pack – Color associations, Benchmarking key competitors, objective
(Parachute – purity)
Color association based on
a) Climatic conditions
b) Visibility from a distance
c) Product category
d) Material used for packaging
e) Quality of printed technology
BRAND NAMES

“A brand name summarizes various relevant and irrelevant aspects as well as copy, audio & visual aspects
of a product which customers can sense”.

Naming guidelines:-
1. Descriptive – Singapore airlines
2. Suggestive – Sunsilk
3. Compounds – UCB
4. Classical – Raaga
5. Arbitrary – Apple, Kodak
6. Fanciful – Xerox

Brand names builds:-


1. Brand awareness – should be easy to pronounce, simple, familiar & meaningful, different, distinctive
and unusual.
2. Brand associations –
a. Word – Sunsilk for sun, silk, nature, shine, smooth, soft.
b. Image – Fair & Lovely for beautiful skin, beautiful lady, compliments.
c. Product – Aspirin, Disprin, Coldarin provoke association with tablet, medicine or pain
reliever.

Naming procedure
1. Define the ideal meaning that the brand should take.
2. Generate as many names as possible.
3. Screen names based on branding objectives and marketing considerations.
4. Collecting more extensive information on each of the final 5 to 10 names.
5. Consumer research to confirm management expectations.
6. Choosing the name that maximizes the firm’s objective.

BRAND EXTENSION

“Brand extension is when a firm uses an established brand name to introduce a new product”.
Line Extension and Category extension.

Types of Brand Extension:-


1. Product related – more options, cornering more shelf space, creating excitement, expanding core
promise, fighting competition. Eg – Lux, Lifebuoy, Pond’s.
2. Image related – Should have image fit. Eg – Colgate into brushes, Dettol into soap. Should have
business fit. Eg – Park Avenue into men Toiletries, Hawkins into masalas. Marketing mix should be
well managed. Eg – BPL, Videocon & Onida diversified at the same time.
3. Unrelated – Corporate image is critical. Eg – Tata, Godrej.
NURTURING SUB BRANDS

“When a new brand is combined with an existing brand”. Eg – Lifebuoy Gold, Junior Horlicks.

Why are sub brands necessary?


1. A new offering for a new segment. Eg – Junior Horlicks.
2. Stagnating mother brand. Eg – Pond’s Dreamflower Magic.
3. A string of offerings & hence identity for each of them. Eg – Cadbury’s Dairymilk, Nestle, Amul.
4. Cross selling eg – Videocon Bazooka.
5. Address different needs. Eg – Close-up Gel, Renew, Stripes
6. To develop different imagery. Eg – Bajaj Caliber, Discover
7. To establish innovative offering. Eg – Philips Powerhouse, J& J Kids.
8. To upgrade a loyal base of consumers to a better offering. Eg – Surf Excel.
9. To avoid confusion. Eg – BPL into Alkaline Battery with Excel & traditional battery with Power.

Types of sub brands:-


1. Mother brand is the endorser of the sub brand. Eg – Junior Horlicks, Sonata by Titan.
2. Co-driver relationship between the mother brand and the sub brand. Eg – Lifebuoy Gold, Colgate
Total.
3. The driver descriptor relationship. Eg – Dettol liquid soap, Maruti Zen, Parachute Lite.

CO-BRANDING AND CORPORATE BRANDING

“Co-branding also called as brand bundling or brand alliances – occurs when two or more brands are
combined into a joint product or are marketed together in some fashion”

“Co-branding is like a marriage”


Tips for a lasting relationship
1. Have you looked around enough?
2. Will you get as much as you give? Will it bring out the best in you?
3. Who is going to take responsibility?
4. How much can you still get on the side?
5. Will you grow old together?

Creating a powerful corporate brand


1. Corporate image
2. Competitive advantage
3. Building trust and credibility
4. Future direction for the organization.

Circular, Continuous, five phase Process


1. Preliminary audit, Research & Evaluation.
2. Analysis, Strategy, Planning & Development
3. Creative Exploration.
4. Refinement & Implementation.
5. Monitoring, Managing and Marketing of the Corporate Image.

“Corporate brand image needs to be thoroughly thought out, planned, nurtured, executed, monitored and,
when necessary modified. It’s the organization’s most valuable commodity & deserves to be always be
treated as such”
Corporate Image dimensions
1. Common product, attributes, benefits and attitudes – high qualityimage, innovative image.
2. People & Relationships – Customer focused image, employee focused.
3. Values and Programs – Socially responsible, environmentally concerned.
4. Corporate credibility – Expertise, Trustworthiness, Likeability.

BRAND ASSOCIATION AND BRAND IMAGE

Brand Association – The degree to which a brand name is associated with a product classification.

Types
1. Qualitative: feels good after Pepsi.
2. Quantitative: Vim enough to clean number of utensils.
3. Absolute: Ariel removes stains.
4. Relative: Nirma does not give whiteness like Rin.
5. Negative: Nirma powder fades clothes.
6. Positive: Frooti has a good taste.
7. Generic: Any bottled water is Bisleri.

Five ways of Help


• Basis for extension: Fairever soap to cream.
• Differentiate: Savlon does not burn.
• Wide reason to choose: Burnol is for burns.
• Illicit feelings: Santoor makes me look younger.

Forms of brand associations


• Product category: 7up – the uncola drink.
• Competitors: Captain cook salt free flow against Tata salt.
• Celebrity endorsements: Shahrukh Khan for Pepsi.
• Price: Babool, Honda, Surf’s Lalitaji.
• Place of origin: France – Fashion.
• Use of product/service: Anytime money, making ice quickly.

BRAND IMAGE

“The perception of product or service in the minds of the consumer”.


The image basically expresses a way of a consumer thinks about the brand and the feelings
the brand arouses when consumer thinks about it.
• What sort of image should our brand have? Company’s goals, consumer expectations, trade groups.
• Why research the brand image?
Brand positioning and efficiency of advertising.
• How to research brand association:-
a. Free association
b. Experience of using product
c. Decision making process
d. Difference in brand
BRAND RELATIONSHIP

BRM – An integrated effort to establish, maintain, and enhance relationships between a brand and its
consumers, and to continuously strengthen these relationships through interactive, individualized and value-
added contacts, and a mutual exchange and fulfillment of promises over a long period of time.

BRM requires:-
1. A deep understanding of customer expectations, attitude and behavior through a well organized and
managed customer database.
2. Innovative customer strategies, which are based on the results of thorough customer analysis, which
consequently, address the major issues pointed out by the analysis.

From Transactional to Relational (CRM)


• Customer insight driven relation ship
• BRAND IDENTITY ≈ BRAND IMAGE
• Trial ---Repeat Purchase---Share of Requirements Brand
Extension
TrialRepeat PurchaseShare of RequirementsAffinityBrand RelationshipLoyalty Service
Extension

• Linking brand and the customer together – The length and strength of the customer relationship is a
result of the relative value the customer perceives in the brand.
• Customer Equity is driven by Brand Equity.
• Customer – Centric Revenue management.

BRM Journey
Step 1: Actionable insight – key value drivers, utility, buying patterns, actual choices, market response
profile.
Step 2: Actionable segments – Profitability, usage, common needs.
Step 3: Value Propositions – Offers & the need, value of the brand, understanding trade offs.
Step 4: Develop a relationship – Mechanism to create positive interactions for satisfaction, loyalty growth,
and life time relationship.
Step 5: Measure the ROI – economic framework, spending allocation model, LTV, investment options.

BRAND LOYALTY

“Brand loyalty is the degree to which a customer holds a positive attitude towards the brand, a commitment
to it, and intends to continue purchasing it in the future”

Issues in Brand Loyalty


• Retaining customers indiscriminately would not lead to profitability
• HABIT Vs LOYALTY
• Consumers may avoid advertisement of competitive brands.
• Easy acceptability of new offerings.
• Functional loyalty – ‘Search oriented’
Symbolic loyalty – ‘Sensory gratification’
Experience loyalty – “post consumption loyalty”
The New Mantra: Multiple Brand Loyalty
• Growth of organized retailing
• Changing consumer preferences
• Increasing media clutter.
• Perceived value.

Stages in Brand Loyalty


1. Brand recognition: Consumer knows of the brand but does not prefer it to competitive brand.
2. Brand Preference: Consumer selects the brand over competing offerings based on knowledge
and experience.
3. Brand insistence: Consumer refuses to accept alternatives & searches extensively for the
desired brand.

BRAND EQUITY

“Brand equity is a set of assets (and liabilities) linked to a brand’s name and symbol that adds to )or
subtracts from)the value provided by a product or service. The major assets are:-
1. Brand name awareness
2. Brand loyalty
3. Perceived quality
4. Brand associations

How Brand Equity Generate Value

Brand 1.Reduced marketing cost


Loyalty 2. Trade leverage Provides value to Customers
3. Attracting new customers 1. Processing of information
4. Time to respond to competitors 2. Confidence in purchase
decision
Brand 1. Familiarity – Liking 3. Use Satisfaction
Awareness 2. Signal of commitment
3. Brands to be considered

Perceived 1. Reason to buy


Brand equity Quality 2. Differentiate Provides value to Firm
3. Price 1. Efficiency and effectiveness
4. Channel member interest of marketing Programs
5. Extensions 2. Brand Loyalty
3. Prices/margins
Brand 1. Help Process/Retrieve information 4. Brand extensions
Association 2. Reason-to-buy 5.Trade leverage
3. Create positive attitude 6. Competitive Advantage
4. Extensions

Other Proprietary Competitive advantage


Brand Assets
Customer based brand equity Model

4. RELATIONSHIPS
(What about you & me)

3. RESPONSE
(What about you)

2. MEANING
(What are you?)

1. IDENTITY
(Who are you?)

Brand equity drivers


1. Key equity drivers – gives the brand direct leverage against competition.
2. Minor advantage drivers – Brand rates statistically stronger but the business performance is lower.
3. Parity Equity drivers - Brand rates statistically equivalent but business performance is higher.
4. Potential vulnerability drivers – Both brand & business performance is low.

STRATEGIC BRAND MANAGEMENT PROCESS

1. Identify and establish brand positioning and values


• Mental maps
• Competitive frame of reference
• Points of parity and points of difference
• Core brand values
• Brand mantra
2. Plan and implement brand marketing plan
• Mixing and matching of brand elements
• Integrating brand marketing activities
• Leveraging of secondary associations
3. Measure and interpret brand performance
• Brand value chain
• Brand audits
• Brand tracking
• Brand equity management system
4. Grow & Sustain brand equity
• Brand – Product matrix
• Brand portfolio and hierarchies
• Brand expansion strategies
• Brand reinforcement and revitalization

SUCCESSFUL BRANDING

1. Great strategy begins with great research.


2. Develop an excellent brand proposition.
3. Value should be unique, relevant and sustainable.
BRAND AS A STRATEGIC DEVICE

The classical brand mgmt model The brand leadership model


Perspective FROM TACTICAL TO STRATEGIC
Brand manager status Less experienced, shorter time Higher in organization, longer
horizon time horizon.

Conceptual model Brand Image Brand Equity

Focus Short time financial Brand equity measures

FROM A LIMITED TO BROAD FOCUS


Product market scope Single products and markets Multiple products and markets

Brand structures simple Complex brand structure

Number of brands Single brands Category focus – Multiple


Brands
Country focus Single country Global perspective

Brand manager’s communication role Coordinator of limited options Tem leader of limited
communication options
Communication focus External/Customer Internal as well as external

FROM SALES TO BRAND IDENTITY


Driver of strategy Sales and Share Brand Identity

BRAND - PRODUCT MATRIX


Products
1 2 3 - - - - - n
A

CA
Brands ------
------
-A

M A

Rows (Breadth) :- Brand – Product Relationships.


Brand extension

Columns (Depth) :- Product – Brand Relationships


Brand Portfolio or mix
BRAND HIERARCHY
Is a means of summarizing the branding strategy displaying the number & nature of common & distinctive
brand elements across the firm’s products, revealing the explicit ordering of the brand elements.
1. Corporate brand
2. Family brand
3. Individual brand
4. Modifier

BRAND VALUE CHAIN is a structured approach to assessing the sources and outcomes of brand equity
and the manner in which marketing activities create brand value.

COMPETITIVE STRATEGIC DECISION


Market leader
1. Expanding the total market
• New users
• New usage
• More usage
2. Defending the market share
• Position defence
• Flank defence
• Preemptive defence
• Counter defence
• Mobile defence
• Contraction defence
3. Expanding the market share – increase profitability through PIMS.

Market Challenger
1. Frontal attack
2. Flank attack encirclement attack
3. By- pass attack
4. Guerrilla attack
5. Specific attack – price, quality, variety, innovation, newness, new channel, reduce cost, increase
advertising.

Market Follower
1. Counterfeiter – Black market
2. Cloner – brand name
3. Imitator – differentiates through advertising, packaging
4. Adapter – Improves the product.

Market Nicher
1. Vertical level specialist
2. Customer size specialist
3. Specific size specialist
4. Geographic specialist
5. Product line
6. Product feature
7. Quality / Price
8. Service specialist
9. Channel specialist
BRAND PLANNING
“It starts with recognizing the need to deliver superior value, analyzing product & market evolution, PLC,
developing the offer, suitably pricing it and delivering by multi-period marketing plans and budgets”.

Issues in Brand Planning


1. Brands play variety of roles
2. Considerable investment
3. Financially valuable assets
4. Focus on tactical planning
5. Brand ‘Vandalism’
6. Brand ‘Dilution’
7. Agency interaction limited

BRAND POTENTIAL
Forces influencing brand potential
1. Manufacturer – Integrating brand strategy with corporate culture.
2. Distributors – Mapping mutual objectives for long term brand profitability.
3. Consumers – should offer means of minimizing information search and evaluation.
4. Competitors – benchmark against competitor’s positioning & personalities

MANAGING BRANDS OVER THEIR LIFE CYCLES

1. Managing brand during the growth phase


• Clear statement
• Designing & Building
• Functional component
2. Managing brand during the maturity phase
• Numerous competitors
• Appropriate brand extensions
• Symbolic component
3. Managing brand during the decline phase
• Recycle the brand
• Revitalize the brand
• Functional or Symbolic component.
• Manage portfolio through MR

BRAND IDENTITY
“A brand identity is a unique set of brand associations that the brand strategist aspires to create or maintain.
It provides direction, purpose and meaning for the brand”.

BRAND IDENTITY TRAPS


1. Brand image trap – Brand image becomes the brand identity rather than just one input to be
considered.
2. Brand position trap – brand position guides the communication of the value proposition. Trap occurs
when goal becomes an advertising tagline rather than a brand identity.
3. The external perspective trap – when firms fail to realize the role that a brand identity can play in
helping an organization understand its basic values and purposes.
4. The product fixation trap – strategic and tactical management of the brand is focused solely on
product attributes.
AAKER’S Framework
“Brand identity is the sum of the brand expressed as a product, organization, person and symbol”.
1. Product – product scope, attributes, quality, value, uses, users, country of origin.
2. Organization – values, local vs global.
3. Person – personality, customer relationships
Physique
4. Symbol – visual imagery, metaphors, heritage.

KAPFERER’S Framework Reflection Personality


1. Physique – core value
2. Personality – as a person
3. Culture – organization value Culture Relationship
4. Relationship – consumer’s perception
5. Self-Image – consumer thinks of himself
Self-Image

Brand Identity Prism

EXTENDED IDENTITY

CORE IDENTITY

Core identity – Timeless essence of the brand


Nike – Sports & Fitness
Extended Identity – Elements that provide texture and completeness.
Nike – personality, relationship, sub brands, logo, slogan, endorser, value, etc.

CREATING BRAND PERSONALITY


1. Define the target audience.
2. Find out what they need, want & like.
3. Build a consumer personality profile
4. Create the product personality to match the profile.
Eg – Levis – original, masculine, sexy, youthful, rebellions, individual, free, American.

RELATIONSHIP BETWEEN CONSUMER AND BRAND

1. Committed partnership – long term and voluntary


2. Marriage of convenience – bond out of chance
3. Arranged marriage – imposed by third party
4. Casual friendship – occasional interaction
5. Close friendship – voluntary union
6. Compartmental friendship – situation based
7. Kinship – involuntary union
8. Rebound relationship – replace prior partner
9. Childhood friendship – childhood interactions
10. Courtship – testing
11. Dependency – suffering if unavailable
12. Fling – short term engagement
13. Adversarial relationship – negative feelings
14. Enslavement – no choice
15. Secret affair – private considered risky

BRANDS AND CONSUMER BUYING PROCESS

“EXPECTANCY VALUE MODEL”


1. Assign scores to the degree to which they expect a pleasurable outcome.
2. Value they ascribe to a favorable outcome.

CONSUMER BUYING MODEL

Tendency to
Extended Problem
Significant Perceived Limited Problem
Solving
Brand Differences Solving

Dissonance Limited Problem


Minor Perceived Brand Reduction Solving
Differences
High consumer Low consumer
Involvement Involvement

BRAND Vs OUTLET CHOICE


BRAND PERSONALITY
Company A Company B
Sophisticated Easy Going
Arrogant Modest
Efficient Helpful
Self Centered Caring
Distant Approachable
Disinterested Interested
Which one would you go for?

RECOGNITION VS RECALL
GRAVEYARD MODEL

High

Graveyard Brand

Recognition

Niche Brand

Low
Low High
Recall
STEPS IN BUILDING STRONG BRAND
1. Start with quality product
2. Identify your brand’s singular distinction, define your message, and position your brand properly in
the marketplace.
3. Own a word or phrase.
4. Tap into emotion
5. Build the image
6. Market the image
7. Live the message
8. Measure the brand equity against the competition and continue to build and refine your brand.
Brand share = brand size estimate for 1 year/ market size estimate for the same year
= brand sales / category sales

SERVICE BRAND
Challenges
1. Behavior of the service provider
2. His own behavior
3. Behavior of other customer

How branding Can be achieved


1. High quality top management
2. Vision
3. Results driven
4. Competitiveness
5. Customer focused
6. Differentiation
7. Consistent quality
8. Criticality of time
Information search evaluations of alternatives  purchase and consumptions  post purchase evaluation

BRAND SHARE
“ share of each brand of an organization in the total market size of the category”
eg share of Surf, Airtel, Wheel, Rin in the detergent category

STRATEGIC BRAND SHARE


Brandt type not
Leaked share offered A
Customers not
covered B
Customers competed
for and lost C
----------------------------------------------------------------------------------------------------------------------------------

Customers competed
Share of for and won D
Market
• Market Share = D + E Customers not
• Winning ratio = D/ (C+D) competed for E

RETAILER ISSUE IN BRANDING


• “Traditional retail vs new format retail”
• “Own label vs manufacturer’s label”
• retailer’s influence on strong vs Weak brand

Evolution of New format


Growing strength of
Major retailers
Large discounts from
manufactures
Small retailers
withdraw

Large store prices attracts


larger numbers of consumer

Increase share

Healthy profits due to


high level of sales
Store
expansion

BRAND LOYALTY – Fine outlets ABCDE


1. Hardcore loyal – AAAAA
2. Soft core loyal – ABABA
3. Shifting Loyal – AACCC
4. Switchers – ABCDE

• Loyalty programmes and proper positioning


• Brand image ≈ Retailer’s image

BRAND STRATEGY
2
1
High
Retailer’s 4
Attractiveness
3
Low
High Low
Brand Strength
UNDERSTANDING THE BALANCE OF POWER

Coercion – one party can punish the other if they fail to perform as per wishes.
Legitimate – Legal rights to influence.
Referent – One gains due to reference from the other.
Expert – Supplier has certain expertise.
Reward – Retailer expects reward.

“Power is ability of one party to control the actions of another and can be conceived in terms on continuum”

SOURCES OF DEPENDENCY

Invest in Strengthen
Relationship Relationship

Retailer’s real rate Category


of growth Average
Consider Defend
withdrawal Relationship

0% 10% 100%

Manufacturer’s share of
retailer’s sales of category
= Size represents profit from

BRAND POSITIONING STRATEGIES

“Positioning is single minded definition”.


“Positioning is determined by defining the brand’s benefit to the consumer, opportunities for which the
brand is best suited, the brand’s target audience, and who its main competitors are”.

ELEMENTS OF POSITIONING
1. The product – meaning it has for the consumer and how he relates to it.
2. The company – Company image and heritage
3. The competition – In relation to various competitive offerings.
4. The consumer – Consumer perception and expectations.

POSITIONING METHODS
1. Impulse purchase items – Chocolates etc. Create excitement, enhance Memorability.
2. Daily use items – Toothpaste and Soaps etc. Promote habitual buying.
3. Self-adorn items – Shoes, garments etc. Create favorable prepurchase disposition, emotional appeal.
4. Consumer Durables – Washing machines etc. Project brand superiority
5. Industrial Products – Raw material, equipments etc. Standard quality, Company’s image, specialized
features, performance guarantee.

TECHNIQUES OF POSITIONING
1. By specific product attributes
2. By distinct benefits to users
3. By specific usage
4. By user category or Application
5. By product class association
6. By Price/Quality
7. By reference group
8. By packaging

POSITIONING Vs DIFFERENTIATION
“Differentiation is to differentiate the offering suitably by designing asset of meaning differences to justify
the price”.
“Positioning involves designing the company’s offer and image so that it occupies a distinct and valued
place in the targeted customer’s mind”.

DIFFERENTIATION STRATEGY
1. Product feature
2. Performance quality
3. Exclusivity and Style
4. Design
5. Product range and variety

CUSTOMER SEGMENTATION

1. Loyal users – who buy a particular brand on amore or less consistent basis most or all of the time.
2. Competitive loyals – Who buys a competitor’s products most or all the time.
• Intense loyals – competitor loyals who are convinced of a particular brand’s merits to such an
extent that for them other brands do not exist.
• Value seekers – competitor brand with most utility for the cost even if it is not the best in the
market.
• Habit bound buyers – habitual buying of the competitor’s brand.
3. Switchers – who keep switching brands for variety of reasons.
• Value switchers – who evaluate price – value relationship
• Occasional usage switchers – brands within the same category for discrete needs.
• Variety switchers – variety seekers.
4. Price buyers – lowest price band.
5. Non users – do not use any brand and have negative attitude towards the category.

BRAND ARCHITECTURE AND BRAND PORTFOLIO

“Brand architecture is an organizing structure of brand portfolio that specifies th brand role and relationship
among the brands and different product market context”.

“Brand portfolio is the collection of various brands of a company”.

I. PORTFOLIO ROLES
a) Strategic brand – mega brand currently dominating, represent a meaningful future level of
sales and profit.
b) Linchpin brand – not necessarily represent a meaningful future in sales and profit but it is
leverage point of a major business area. Eg. Park Avenue from Raymond’s.
c) Silver bullet – a brand or sub brand that positively influence the image of another brand. Eg.
IBM Thinkpad.

II. PRODUCT MARKET CONTEXT ROLES


a) Endorser & sub-brands roles – A endorser brand is an established brand that provides
credibility and substance to the offering. Sub-brand is a modifier to the mother brand.
b) Benefit brand – either some feature, ingredient or service which becomes the USP. Eg. Oral
B replacement detector
c) Co-brands
d) Driver role – extent to which a brand drives purchase decision and defines the use
experience.

III. BRAND PORTFOLIO STRUCTURE


a) Brand groupings – logical groupings of brands that have meaningful characteristics in
common. Eg. Healthcare, oralcare, personalcare.
b) Brand hierarchy trees – logical chart with both horizontal and vertical dimensions which
provides perspective for brand architecture.
c) Brand range – spanning the brand or product class or the potential to do so.

PERCEPTUAL MAPPING

“Graphical technique used by marketers that attempts to visually display the perceptions of the comsumers
or potential customers”.
1 2 3 4 5 6 7 8 9 10
High moisturizing

● ● Attractive ● ●
Trendy ●
● ●
● ● Reliable ● ●
Deodorant Luxurious ●
Non- Family ●
deodorant
Sporty ●



Low moisturizing

MARKETING APPLICATION
1. Market description and segmentation
2. Identify product weaknesses
3. Content development and evaluation
4. Tracking customer perceptions
5. Identify difference among groups.

TECHNIQUES
1. Multi dimensional scaling – multiple dimensions given by respondents. Important issues are
Similarity/Dissimilalarity data, preference data, number of dimensions, labeling of dimensions, what
do the gaps mean.

2. Attribute methods-
a. Cluster analysis – For natural groupings. It reduces the number of observations or cases by
grouping them into smaller set of clusters. Helps in segmenting the market, targeting, product
positioning, new product development, selecting test markets.
b. Factor analysis – Analyze interrelationships among a large number of variables & explain
these variables in terms of their common underlying dimensions.
c. Discriminant analysis – One dependent and many independent variables. Dimensions based
on differences rather than similarities.

BRAND AUDIT GUIDELINES

“A brand audit is a comprehensive examination of a brand in terms of its sources of brand equity, health of
the brand & suggest ways to improve and leverage its equity. From the marketer perspective it means to
understand what products and services are being offered and marketed. From the consumers perspective, to
understand how they perceive the brands and what beliefs they possess”.

1. Brand inventory – Is to provide current, comprehensive profile of how all the products and services
sold by a company are marketed and branded. (DEMAND SIDE)
a. Brand elements
b. Supporting marketing program.
2. Brand exploratory – Research activity directed to understanding what consumer think and feel about
the brand in terms of brand awareness, strength, favorability and uniqueness of brand associations.
a. Qualitative Research
b. Quantitative Research

BRAND TRACKING SURVEY


I.Brand awareness & Usage
a) What brands of quick service restaurant chains are you aware of?
b) Which are your favorite quick-service restaurant chains?
II. Brand judgments
a) How favorable is your attitude toward McDonald’s?
b) What is most unique about McDonald’s?
III. Brand performance
McDonald’s
a) Is convenient to eat at
b) Has a varied menu
IV. Brand imagery
a) To what extent do people you admire and respect eat at McDonald’s.
b) To what extent do you feel you grew up with McDonald’s.
V. Brand feelings
Does McDonald’s gives you a feeling of:-
a) Warmth?
b) Excitement.
VI. Brand resonance
a) I consider myself loyal to McDonald’s
b) I would go out of my way to eat at McDonald’s
CORPORATE OR FAMILY BRAND TRACKING
a) How well managed is GE?
b) How concerned is GE with its customers?.

BRAND EQUITY MANAGEMENT SYSTEMS

1. Brand equity Charter


a. Define the firm’s view of brand equity concept
b. Describe the scope of key brands
c. Specify what the actual & desired equity
d. Explain how brand equity is measured
e. Suggest how brand equity should be managed
f. Outline how marketing programs should be devised
g. Specify the proper treatment of the brand in terms of trademark usage, packaging and
communications.

2. Brand equity Report – To be distributed on a regular basis. Descriptive information as to what is


happening & why it is happening. Should include all relevant internal and external measures of
brand performance and sources and outcomes of brand equity.

3. Brand equity Responsibilities


a. Overseeing Brand equity – CBO
b. Organizational design and structures
c. Managing marketing partners.

BRAND BENEFITS AND ATTRBUTES

BENEFITS OF SUCCESSFUL BRAND


1) Leveraging power
2) Cooperative marketing / Promotional ventures with desired partners
3) Loyalty drives repeat business
4) Greater shareholder & stakeholder return
5) Brand based price premium allow for higher margin.
6) Embody a clear, valued and sustainable point of differentiation relative to competition
7) More loyal and stronger customer base are more likely to forgive company in the event of a mistake.
8) Protects the company’s innovation

POSITIONING BY ATTRIBUTES
Eg. Electronic fuel injection, Enzyme detergent wash, Insulation in refrigerators.

USP – Television  Began with color TV, then remote, then picture clarity, LG’s Golden eye, BPL Quadra
focus, Onida KY Rock.
Combination of Rational and Psychological Benefits.

REPOSITIONING OF BRANDS
Aspirational Vs Achievable strategies
1) Ensure relevance to a customer’s frame of reference
2) Secure the customer’s ‘permission’ for the positioning.
3) Deliver on the brand’s new promise
Brand Equity Elements
Intangibles
Origin

Internal
Reputation

Personality
External Emotional
Intangible
Benefit
Perceived Association Evolution
value
What the brand Brand Brand What the
offers Benefits Identity brand is
Functional
Rational
Presence
Benefit Activities
Process

Presentation
Relationship

Tangibles

REPOSITIONING
Changing the positioning of a brand. For e.g. Dettol toilet soap positioned as beauty soap. Not in line with
parent brand i.e. antiseptic liquid. Hence repositioned as germ – kill soap & was accepted

1. Increasing relevance to consumer


a) e.g. – Lipton yellow label from delicious, sophisticated, premium tea for global citizen
changed to Indian flavor.
b) Cadbury’s Bournvita
Taste additive to milkExtra Nutrition,
Extra tasteNutrition, Mental stimulation

2. Increasing occasions for use.


a) Monaco biscuits – Perfect salted  Excellent plain, terrific with toppings
b) Dettol liquid – For cuts & Gashes  Overall hygienic(Shaving, Bathing, washing)

3. Search for viable position


a) Complan – Food for Sick  Against Horlicks  For family  For growing Children.

4. Making the brand serious


b) Saffola – Good for heart  heart not safe without it  Most health conscious brand.

5. Falling sales
a) Ambassador – Rugged road master  Amember of family
6. Bringing in new consumers
a) J&J baby shampoo – No more tears  Mild Shampoo  Extra soft for heavy users.

7. Making the brand contemporary


a) Keokarpin hair oil – Styling  The non sticky hair oil.
b) Onida TV – Neighbor’s envy Owner’s pride  World’s envy India’s pride.

8. Differentiation from competitors


Mint-O –-> Adult candy
} Polo
All mint, A mint with the hole
No hole

9. Changed market conditions


a) Milkmaid – Whiteness for tea coffee  Maker of tastiest milk  Toppings for Cakes Puddings 
Use in dessert recipes.

MTV – Building Brand Resonance

MTV was established in 1981 as a maverick pioneer in the burgeoning cable television industry. Over the
next 20 years, MTV moved from the fringe of television culture in America to the core of pop culture in the
countries all over the world. The key of MTV’s success in each market was its ability to connect with the
young consumers. This led to a constant cycle of reinvention. With a few exceptions, at each crossroads
MTV was able to find the right mix of music & culture to capture the viewership of successive generations
of young people, both domestically and internationally. This case examines the key decision & factors that
enabled MTV to accomplish its rise a global media network from its humble origins. The following
questions need to be discussed.

ADVERTISING & BRANDING

1. Advertising is not about selling the skill of you firm, but about promoting the qualities that
differentiate your firm from so many others.
2. The goal of advertising is to focus attention on what sets your firm apart from others.
3. Advertising broadcasts your differentiators to a targeted audience of mass proportions.
4. DAGMAR or Defining advertising goals for measured advertising results.
5. Advertising must communicate a DIFFERENCE which must be competitive and PERSUASIVE
which must be discovered and SEARCHED.
6. Branding Vs Action compelling Advertising.
7. Role of agency.
8. Decision Tree.
Model 1- U1
Old
Model 2- U2

Model 1- U3
Foreign
New
Model 2- U4
BUY
Model 1- U15
Old
Domestic Model 2- U6
NOT BUY
Model 1- U7
New
Model 2- U8

Node 1 Node 2 Node 3 Terminal Utility of


Node Outcome

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