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Christies Auction 2000Actress Judy Garlands slippers from

Wizard of Oz, was sold for over $80,000(actual cost $12.50)

Actor Christopher Reeves Super Man suitfetched over $30,000. Gilligan Islands skipper hat was sold for

$8,000.

It is the celebrity associations that led to such high pricesfor these items which are otherwise trivial cost wise.

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Brand Management

An Introduction

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Definitions of Brand

American Marketing Association (AMA) -

A brand is a name, term, sign, symbol or

design or a combination of them ----- toidentify the goods and services of one sellerfrom those offered by another.

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Branding is all about creating differences Brand Elements key to creating a brand.

Choose a Name

Logo

Symbol

Package

Design

or other attributes that distinguishes the product.

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Definitions of Brand

One of the most popular and potentiallyimportant marketing concepts to arise in the1980s was the concept of Brand Equity.

Fundamentally, branding is all aboutendowing products and services with thepower of brand equity.

The brand equity concept stresses theimportance of the role of brand in marketingstrategies.

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Why Do BrandsMatter?

Advantages of Branding toconsumers and also to firms.

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ROLES THAT BRANDS PLAY

Advantages for Consumers

Identification of source of product:assignment ofresponsibility to product maker. Past experiences and marketingprogrammes help consumers to learn about brands and provide as ashort hand device.

Risk reducer:Functional risk, physical risk (user), financial risk,social risk, psychological risk (mental well being) & time risk

Search cost reducer: consumers already know about quality ,product characteristics of the brand it enables lesser search for

solutions. Promise, bond or pact with maker of product:helps in

building relationships.

Symbolic device:Benefits may not be always functional Brandsallow consumers to project their self image

Signal of quality

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ROLES THAT BRANDS PLAY

Advantages for Firms Means of identification:fundamentally they help in the

identification of product and helps in accounting andadministration / operations.

Legal protection for the invention/ the uniquefeatures of your product.

Signal of quality level to satisfied customers.Means of endowing products with unique

associationsSource of competitive advantageSource of financial returns

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Three Levels Of Product (Old)

Corebenefit

orservice

Packaging

Features

StylingQuality

BrandName

Installation

Delivery &

Credit

After sales

service

Warranty

Core Product

TangibleProduct Augmented

Product

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Brand vs. Product

Kotler defines 5 levels to a product (Air-conditioner) The Core Benefit (cooling & comfort)

Generic product(Sufficient cooling capacity (ton), economicelectricity consumption, adequate fresh air intake etc)

Expected product:(Adjustable cooling speeds, adjustablelouvers, removable air filters, aesthetic panels/looks, parts& service warranty, split unit, non Freon refrigerant gas etc.)

Augmented Product:Electric touch pad controls, display to

shoe indoor and outdoor temperature, automatic mode toadjust temp based on outside temp. personal liking)

Potential product:Cooling balanced throughout room, lowprice, low energy consumption.

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Five Levels Of Product

CoreBenefit

ExpectedProduct

CoreProduct

BasicProduct

AugmentedProduct

BasicFeatures

CommonAttributes

LatestStyle

Warranty A.S.S

Paymentterms /Credit

Product Differentiation

BrandPersona

CRM / Services

BrandName

LoyaltyClub

Superior

valuePotential

Product

Brand

Image

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Brand vs. Product -2

Kotler:Competition essentially takes place at theaugmentation level as most firms can successfullybuild satisfactory products (expected level).

Theodore Levitt:The new competition is notbetween what companies produce in factories but---------------------------------------- between what they

add to their factory output in the form of packaging,services, advertising, customer advice, financing,delivery / logistics, warehousing and other thingswhich people value.

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Branding

A brand is basically a product, but one thatadds other dimensions that differentiate itfrom other products designed to satisfy thesame need.

These differences may be tangible andrational, or can be symbolic, emotional and

intangible (but related to what the brandrepresent).

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Brand vs. Product - 3

What distinguishes a brand from its unbrandedcommodity and gives it its equity ----- is the sumtotal of consumers perceptions and feelings

----------about the product attributes and how they

perform

about the brand name, brand associations andwhat it stands for

and about the company associated with it.

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Coca-cola, Marlboro, Colgate: understoodconsumer motivations & desires and

created relevant and appealing imagessurrounding their products

Often these intangible image associationsare the only way by which you candistinguish different brands.

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Creating a successful brand entails blending allthese various elements together:

The product/service will have to be of high qualityand appropriate to consumer needs

The brand name must be appealing and in tunewith consumers perceptions about the product.

Packaging, pricing, promotion and all other

elements must similarly meet tests ofappropriateness, appeal and differentiation.

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Can Anything BeBranded?

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Branding Applications

Physical goods

Components Intel, Material Dupont,Chicken Purdue, Venkys etc.

Services:

American Express, FedEx, Marriot Hotels,AC Nielsen, Goldman Sachs.

Online Products & Services

Google, Yahoo, Amazon.com, Bazee.com,e-bay

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Branding Applications

People & Organizations Amitabh Bachan, Beckham, Michael Jordan Tata Steel, Infosys, GenpactRetailers & DistributorsWall-Mart, Sears, Metro, Mearsk,Geographic Locations

Kerala, Singapore Ideas & Causes World Wild Life Fund

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Commodity To Brand

Marketers can benefit from branding wheneverconsumers are in a choice situation.

A commodity is a product so basic that itcannot be physically differentiated in the mindsof consumers.

Number of product categories that were seen

one time as commodities have seen theemergence of highly differentiated brands.

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Branding

Brands are something that resides in theminds of consumers ..

(include all other perceptions such as their

fantasies etc.)

Branding (endowing products/services with

the power of brand) Its all about creatingdifferences.

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Branding

The key to branding is that consumers mustbe made to think that all brands in thecategory are not the same.

It involves creating mental structures &helping consumers organize their knowledge

about products/services which provides clarityfor customers in decision making.

Brand as a short-hand

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Branding

Brand differences are often related to attributesor benefits of the product itself.Gillette, Birla-White,3M, Harpic, Surf, Colgate, LG-Golden Eye, Samsung,Kelvinator, Godrej PUF etc.

Other brands create competitive advantagesthrough non product related means.Pepsi, Lux,Marlboro, Kingfisher, Onida, Boomer, M. Dew

They have understood consumer motivations &desires and created appealing images aroundtheir products.

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Brand Promise

A brand is essentially a marketers promiseto provide predictable product or service

performance.

Brand promise is the marketers vision of whatthe brand must be and what it should do for theconsumers.

True value and future prospects of a brand lies

with the customers. Their knowledge about the brand and their likely response

to companys marketing activities which again will be basedon brand knowledge.

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Building StrongBrands

What are the core aspects involved indeveloping strong brands?

Models of Aaker, Kapferer & Keller

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BRAND ANATOMY David Aakers work on Brand personality leads

to Brand anatomy. It consists of an innermost level which is termed

as theessence.

Followed by the next outer level, thebenefitsand the final level, theattributes.

David Aaker seems to treat essence to besynonymous with Brand personality.

Essence is the basic idea behind the brand

When a brand is configured, it is important to getits essence first.

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BRAND ANATOMY -1

Essence is the basic idea behind the brand. This essence translates into benefits .

These benefits should be converted to specificattributes.

Ultimately it is these benefits and attributes that formwhat he calls Brand Anatomy.

For instance essence of a brand like Close-up is youth.(Typically toothpaste uses the plank of dental health prevents cavities, dental decay prevention etc.).

This essence translates into benefits like joy, fun,energy & modernity.

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BRAND ANATOMY -2

Close Up- Brand anatomy:

The above mentioned benefits gets reflected in the attributes

of the product. The bright packaging of Close-Up signals modernity. Also the bright

colour and the gel reflect youth.

The endorsement of close up Anthakshari is the celebration, joy andenergy dimension of the brand.

(Youth)Essence

BenefitsFun

Joy

Modern

Energetic

Attributes Bright colour

Gel

Bright

packaging

Soft squeeze

tube

Endorsement ofAnthakshari

Price

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BRAND ANATOMY 3(Compiled YLR Moorthy)

Brand Essence Benefits Attributes

Coorg Coffee 100% Coffee Purity No Chicory

Little Hearts Romance Fun Heart shaped

Marlboro Macho Socially admired Strong tobacco

Mohawks shoe Modern Comfort Casual wear

Pepsi Youth Merriment Fizzy drink

Impact Bicycle Rebellion Trendiness Sleek Body

Elanza luggage Top-of-the-line Sophisticated Premium quality

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Brand Identity Prism

Jean Noel Kapferer

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BRAND IDENTITY KAPFERERS FRAMEWORK

KAPFERER arranges elements of brand identity as a sum of

certain tangible and intangible elements. Both Aaker and Kapferer describe brand personality as a subset of

brand identity.

Brand Identity Prism

Picture of sender

Picture of recipient

PersonalityPhysique

CultureRelationship

Reflection Self-Image

Ex

terna

liza

tion

Inte

rna

liz

ati

on

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BRAND IDENTITY PRISM -2

Elements of the Brand Identity prism Kapferer represents brand identity as a six sided

prism

Six faces of the prism are

1.Physique 2.Personality 3. Culture,4.Relationship 5.Reflection & 6. Self Image.

Physique: is the basis of the brand. The physique of Philips is technology and

reliability, while for the brand Tata it is trust. MRF itwill be strength & reliability.

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Brand Identity Prism -3

1. PhysiqueBrand first of all physical specifications &

qualities. It is brands back bone the tangible

values added. If brand is a flower then stem is its physique.Traditionally branding works on positioning

the product relying on certain key productand brand attributes /benefits.

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Physique

The first step in defining a product is todefine its physical product what is itconcretely? What does it look like? What

does it do?Picture of famous coca-cola bottle in its

cans.

By showing the traditional bottle, cokeaims to remind us of its roots.

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Brand Identity Prism -2

2. Brand Personality: It answers the question, what happens to

this brand if it became a person.

It can be human being or animated objectsor animals.

Brand has a personality. By communicating it

gradually builds up character.Highly used in advertising to bring / project

all the intangibles associated with brand.

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Brand Personality:

It has been the main focus of advertisingsince 1970s.

Easiest way to creating personality is tohave a brand spokesperson.

Brand identity is the personality facet of

the source. It should not be confused withSelf image which is a portrayal of the idealreceiver.

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BRAND IDENTITY PRISM -5

3. Culture :

Brand is a culture. Every product dorepresent this culture it derives & is a meansof communication.

It is the set of values feeding the brandsinspiration. It refers to the basic principlesgoverning the brand in its outward signs.

Mercedes embodies German values. Order prevailseven at 260 km/hr landscape may be whizzing by,but the Merc remains stable and unperturbed.

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Culture

Culture is what links a brand to the firmwhen both share the same name.

Because of its culture Nestle has notsucceeded in conveying the image of afun & enjoyable brand.

Maggi does not carry Nestle Logo.

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Culture

Symbolizes the organization, its country-of-originand the values it stand for.

India is known for its traditional remedies which iswhy Balsara, Dabur, Zandu evoke a goodresponse abroad.

Germany for its precision engineering, Japan forconsumer electronics and US for services.

Mercedes Benz, Hitachi, Fed Ex, MC-Donaldsbenefit from this. IBM, Coca-cola, Nike and Levis stands for

American culture.

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Culture

Brand culture plays an essential role indifferentiating the brand. This facet is the onethat helps to differentiate the luxury brands themost because it refers to their source.

Calvin Klein's minimalism, and Benetton'scontroversy orientation provide a set of valuesand different from that of Esprit.

Cultural facets is the key to understanding thedifferences between Nike, Reebok and Adidas.

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BRAND IDENTITY PRISM - 4

4. Relationship: A brand is a relationship. Indeed, brands are often

at the crux of transactions and exchanges

between people. Its the hand shake between the consumer and the

organization.

The relationship with Colgate is one of depe-

ndebility (oral hygiene) and that with Saffolaedible oil is one of safety.

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Relationship

This is particularly true for brands in the servicesector and also for retailers.

Yves Saint Laurent brand functions with charm:

the underlying idea of a love affair permeatesboth its products and advertising.

Christian Diors symbolizes another type of

relationship: one that is grandiose, ostentatious,the desire to shine like gold.

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Relationship

This facet defines the mode of conduct thatmost people will identify with the brand.

The way the brand acts, delivers services and

relates to its customers.Nike suggests a peculiar relationship based on

provocation, it encourages us to let loose (letsdo it).

IBM symbolizes orderliness, while Appleconveys friendliness. Moulinex defines itself asthe friend of women.

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5. Reflection: Theconsumers perception of what the brand

stands for. Pepsi stand for young, while Cokecuts across all age groups.

When asked on views about car brands, peopleimmediately answer in terms of the brandsperceived client type.For young people, for

fathers; for show offs; for old folks etc. Brand will always tend to build a reflection or an

image of the buyer or user.

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Reflection

Reflection and target (group) often gets mixed up.

Target describes the brands potential buyer oruser.

Reflecting the customer is not the target group.

Customer should be reflected as he/she wishes tobe seen as a result of using the brand.

Pepsi for instance has a much higher clientele thanthe 15-20 year old, narrow segment which its Ads

projects. How can such a paradox be explained.

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Reflection

How can such a paradox be explained For the younger segment (8-14 year olds) Pepsi

embodies their dream, of what they want to bewhen they grow up.

Youth identifies with the heroes.

For adults they represent a certain way of lifeand of certain values rather than of a narrowlydefined age group.

Thus the brands brings in 40 year olds also toidentify with this special way of life.

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Reflection

The confusion between reflection and target isquite frequent and causes problems.

Many managers show in their ads - theirconsumers as the way they are.

Fallacy behind this is - Consumers indeed usebrands to enhance their identity.

In the ready-to-wear industry, the obsession tolook younger should concern the brandsreflection, and not necessarily their target.

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6. Self Image:

Finally a brand speaks to our self image.

If reflection is targets outward mirror, self image isthe consumers internal mirror.

What the consumer thinks of himself. Mercedesowner tells himself that as he belong to the elite he

is treating himself to the best car. Porsche owners simply want to prove themselves

that they have the ability to buy such a car.

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Self Image

Even if you dont practice any sports, Lacosteclients inwardly picture themselves as membersof an elegant sports club

An open club with no race, sex or agediscrimination but endows its members withdistinction.

This works because sports is universal.

When two Harley Davidson customers meet,they can strike up a conversation immediately

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BRAND IDENTITY PRISM

Mahindra Maxx - Brand Prism

Physique : Tough, spacious and economy

Personality: Family man - dependable

Relationship: Companion traveler

Culture: Family values (caring)

Reflection / user image: Semi urban business man

Self image:Prudent (Smart choice).

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Components of BrandBuilding Blocks

Customer Based Brand EquityModel Kevin L. Keller

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Customer Base Brand Equity Pyramid

Resonance

Judgments Feelings

Performance Imagery

Salience1. Identity

(Who are you?)

2. Meaning(What are you?)

3.Response(What about you?)

4. Relationships(What about you & me?)

BUILDING A STRONG BRAND

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BUILDING A STRONG BRAND

The Four Steps of Brand Building:(Customer Based Brand Equity Model)

They represent those basic questions that customers askabout brands.

1. Who are you? (Brand Identity) Ensure identification of the brand in customers

minds by associating it with a particular productclass or need.

2. What are you? (Brand Meaning) Establish the Brand meaning in the minds of

consumers by strategically linking tangible and

intangible brand associations.

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BUILDING A STRONG BRAND -1

The Four Steps of Brand Building: 3. What do I think or feel about you?

(Brand Response) Elicit proper customer response to this brand

identification and brand response. 4. What about you & me? (Brand Relationships) What kind of and to what degree of association I

like to have with you? Convert brand response to an intense, active

loyalty relationship between customers and thebrand.

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Brand Salience

Achieving the right brand identity involves creatingbrand salience with customers. It relates to aspectsof brand awareness.

How easily & often the brand is evoked and thecircumstances leading to it? Is the brand at the topof the mind or has it brand recall and brandrecognition?

Brand awareness is not just knowing the brand. Itshould link it with product/service category.

Brand awareness provide identity by linking brandelements to a product category and associatedconsumption situations.

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Brand Salience

The depth of brand awareness concerns the

likelihood and the ease at which a brand elementcomes to the mind of the consumer.

Breadth of brand awareness concerns the range of

purchase and usage situations in which the brandelement comes to the mind.

A highly salient brand is one that has both depthand breadth of brand awareness such that

customers make sufficient purchases and alwaysthink about the brand across a variety of settings inwhich it could possibly be consumed.

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Brand Performance

The product itself is at the heart of brand equity.Designing and delivering a product that fully satisfiesa customer needs/wants is a prerequisite forsuccessful marketing.

Brand performance relates to the ways in which theproduct or service attempts to meet customers morefunctional needs.

Brand performance transcends the ingredients and

features that make up the product / service toencompass the aspects related to the brand thataugment these characteristics.

B d P f

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Brand Performance

Five important types of attributes and benefits

1. Primary ingredients and supplementary features.

2. Product reliability, durability & serviceability.

3. Service effectiveness, efficiency and empathy.

4. Style and design

5. Price

Some attribute are essential necessary for the

product to work, whereas other attributes aresupplementary features that allow for customizationor more personalized usage.

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Brand Imagery

It deals with the extrinsic properties of the product orservice.

Brand Imagery is about how people think abstractlyabout the brand rather than what they think that the

brand actually do. It deals with the Intangibles. Refers more to the intangibles; 4 primary types are:

1. User profiles

2. Purchase & usage situations 3. Personality & values

4. History, heritage & experiences.

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Brand Imagery -2

Brand imagery association based on the user type may

result in a profiling of actual users or more aspirational oridealized users.

May be based on descriptive demographic factors (age,gender, race, income) or more abstract psychographic

factors (lifestyle). Anotherset of associations is based on conditions when the

product should be bought and used.

Purchase situation may be based on factors such as place

of buying (super markets, specialty stores) and ease ofpurchase or any reward attached.

usage based on when to use (time of year etc), occasion(formal/informal; perk from home to outdoor snack) etc.

B d I

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Brand Imagery - 3

Brands may also take on personality traits.

Brand like a person can be characterized as beingmodern, old fashioned, lively, exotic etc.

Advertising is most influential in creating brand

personality as it can project the brand in theusage/user based situation.

Personification through brand characters (Marlboro cigarette,Lux and Bollywood heroines) or using user imagery

(Mountain dew dudes) or product animation techniques(Bajaj Kawasaki, Fido Dido of 7-up)

Consumers often choose and use brands that have apersonality that is consistent with their self concept.

B d I

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Brand Imagery - 4

Finally brands may take on associations to theirpast and certain noteworthy events in the brandhistory, heritage, country of origin etc.

Creating strong, favorable and unique associations

is a challenge to marketers, but its essential forbuilding brand equity.

Strong brands have established brand associations Volvo & Michelin (safety), Intel (performance & compatibility)

Marlboro (macho/ western imagery), Coke (American &refreshment), BMW (Styling & performance), Nike(innovation & peak athletic performance), Hall Mark (caring),Harley Davidson (adventure), Close-up (youth) etc.

Brand Judgments

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Brand Judgments

Customers personal opinions and evaluations of thebrand, based on the performance and all the imageryassociations.

Brand Quality: an important factor that affect

consumers brand attitude is perceived quality. Brand Credibility: extent to which brand as a whole is

credible is from the three dimensions 1. Brand Expertise is the brand competent, innovative and a

market leader 2. B. Trust worthiness: dependable and keeping customer

interests in mind.

3. B. Likeability: fun, interesting & worth spending time with.

Brand Judgments 2

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Brand Judgments -2

Brand Consideration: Eliciting favorable attitude

and perceptions of credibility will be insufficient ifcustomers do not seriously consider the brand forpurchase and usage.

It is beyond awareness & deals with whethercustomers include the brand in their choice set.

Brand Superiority: Superiority relates to the extent towhich customers view the brand as unique and better

than other brands. A critical factor in building intense & active relation-

ships and depends on the unique brand associationsthat make up the brand image.

Brand Feelings

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Brand Feelings

Are customers emotional responses and reactions

with respect to the brand. (feelings evoked by themarketing programmes for the brand).

How does the brand affect customers feelings about

themselves and their relationship with others. These feelings can be mild or intense; negative or positive.

Six important types of Brand building feelings

1. Warmth (soothing type of feelings): makes one feel a

sense of calm, creates sentimental or affectionate feelingstoward the brand..

2. Fun (upbeat type of feelings): makes on feel lighthearted,joyous, playful and cheerful

B d F li

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Brand Feelings

Six important types of Brand building feelings 3. Excitement (a different form of upbeat feeling):

this makes consumers feel a sense of elation,excitement being alive, being cool or sexy.

4. Security: Brand produces feelings of safety,comfort and self assurance. It takes of the worry &concern.

5. Social Approval: Consumers feel that others lookfavorably on their appearance, behaviorand so on.

6. Self Respect: the brand makes consumer feelbetter about themselves. Consumers feel a sense ofpride, accomplishment or fulfillment.

B d R

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Brand Resonance

Final step focuses on the ultimate relationship

and level of identification that the customer has withthe brand.

Brand resonance refers to the nature of thisrelationship and the extent to which customers feel

they are in sync with the brand. Examples of brands with high resonance Harley Davidson,

Apple and e-Bay. Can be broken down into four categories

1. Behavioral loyalty 2. Attitudinal attachment 3. Sense of community 4. Active engagement

B d R

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Brand Resonance

Behavioral loyalty is depicted in terms of repeatedpurchase.

It reflects on the share of the brand in the productcategory volumes.

The life time value of behavior customers can beenormous (due to more frequent purchase thansomeone who postpones the purchase and thenbuys).

Behavioral loyalty is not just sufficient forresonance to occur. Customers should go on andbuild a positive attitude by which they start to seethe brand as something special.

B d R

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Brand Resonance

Loyalty requires a deep attitudinal attachment.(90% of people who said they are satisfied tohighly s. did not buy the same brand of car next

time Frederick Reichheld).Brand can also take a broader meaning to the

consumer in terms of a sense of community.

Identification with a brand community givescustomers kinship or affiliation with others whoare associated with the brand.

B d R

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Brand Resonance

Finally the strongest affirmation of brand loyaltyis when customers are willing to invest, time,energy, money or other resources in the brandbeyond those expended during purchase or

consumption of the brand.Customers may join a club centered on the

brand, get updates, get to correspond with

other brand users etc. Strong attitudinal attachment and social identity

are necessary for active engagement to occur.

Christies

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