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Brand ManagementBrand Management

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Top 10 brands (Worldwide)Top 10 brands (Worldwide)

Source: Interbrand 2007

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No.1($m 65,324)No.1($m 65,324)

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No. 2 ($m 58,709)No. 2 ($m 58,709)

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No. 3 ($m 57,091)No. 3 ($m 57,091)

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No. 4 ($m 51,569)No. 4 ($m 51,569)

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No.5 ($m 33,696)No.5 ($m 33,696)

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No.6 ($m 32,070)No.6 ($m 32,070)

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No.7 ($m 30,954)No.7 ($m 30,954)

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No.8 ($m 29,398)No.8 ($m 29,398)

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No.9 ($m 29,210)No.9 ($m 29,210)

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No.10 ($m 23,568)No.10 ($m 23,568)

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Top 10 Trusted brands: IndiaTop 10 Trusted brands: India

Source: Brand Equity 30th May 2007

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No.1No.1

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No. 2No. 2

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No. 3No. 3

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No. 4No. 4

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No. 5No. 5

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No. 6No. 6

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No. 7No. 7

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No. 8No. 8

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No. 9No. 9

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No. 10No. 10

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What is a Brand?What is a Brand?

Keller: A brand is a set ofmentalassociations, held by the consumer, which

add to the perceived value of a product or

service

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Mental associationsMental associations

What is its level of quality (low; medium;

premium; luxury)? What are its properties/merits?

What is its most discriminating quality or

benefit (also called perceived positioning)?

- Burnol is for burns

- Marlboro is about fierce independence

- Hummer: Like nothing else

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Mental associationsMental associations

What typical buyer does the brand evoke?- Harley Davidson

- Goa

- Rolex

What is the brand personality and brand

imagery?

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Brand GestaltBrand Gestalt

PhysicalProduct

Attributes

QualityUses

BrandPersonality

LogoVisual

Appearance

Country ofOrigin

UserImagery

Tangible

Benefits

Emotional

Benefits

BrandCustomerRelationship

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Brand elementsBrand elements

Name Logos

Symbol (Golden arches, Pug, Swoosh)

Numbers (Maruti 800, Levis 501, James Bond007, Nokia 1100)

Packaging (Absolut vodka, Frooti in tetra packs)

Sound: Harley Davidson

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Brand elementsBrand elements

Sensation: Dettol - burning sensation and smell Slogan (Connecting people, Kuch meetha ho jaye)

Typeface (Bata, Woodland, Airtel, Vodafone)

URLs

Spokespeople

Advertising

Jingles

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Why are brand elements soWhy are brand elements socarefully chosen?carefully chosen?

Enhance brand awareness Facilitate brand associations

Elicit positive judgments and feelings

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Criteria for choosing brandCriteria for choosing brandelementselements

Memorable Easily recognized

Easily recalled

Meaningful

Descriptive

Persuasive

Likable Fun/interesting

Rich imagery

Aesthetically pleasing

Transferable Within/across categories

Across geog/cultures

Adaptable Flexible

Updatable

Protectable

Legally

Competitively

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A synthesis of all elements, physical,aesthetic, rational AND emotional

End result =

appropriate

differentiated

relevant

BrandBrand

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The Coca-Cola Brand is

1800s Heritage The Real Thing Americana Battles with Pepsi

Sold Everywhere Logo

BrandBrand

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The McDonalds Brand is

The Big Mac Happy Meals

French Fries Red,White & Yellow

Restaurants

Fun For Children Ronald McDonald

Golden Arches Value for Money

BrandBrand

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The Product and the brandThe Product and the brand

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ProductProduct

Kotler: A product is anything that can beoffered to a market to satisfy a want or

need

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What is a Product?What is a Product? Kotlers

Fivelevels to a

product:

Generic Product

CORE BENEFIT

Expected Product

Augmented Product

Potential Product

TheFundamental Need or Want

that consumers satisfy by

consuming the product or service

Generic Product

Basic Version of the product

containing only those elements

absolutely necessary to function.No distinguishing features.

Expected ProductAttributes and Characteristics thatbuyersnormally expect and agree

to when they purchase a product

Augmented ProductAdditional product attributes,

benefits, or related services that

distinguish the product from

competitors

Potential Product

All the augmentations and

transformations that a product

might ultimately undergo in the

future

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Product and brandProduct and brand

Product = CommodityA product is a produced item always

possessing these characteristics:

Tangibility

Attributes and Features

Brand = Mind Set

The sum of all communications and experiences received

by the consumer and customer resulting in a distinctiveimage in their mind set based on perceived emotional

and functional benefits

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Product and brandProduct and brand

Products come to life, live and disappear,but brands endure e.g. Zen, Honda City,

Bajaj

A brand is the memory of the products

A brand is less elastic than its product. Once

created, like fast-setting concrete it is hard

to change

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Are leading brands the bestAre leading brands the bestproducts?products?

Not necessary

To be the best means to compete in the

premium tier which is rarely a large

segment

The brand with the best quality/price ratio is

market leader

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What can be branded?What can be branded?

Physical goods Services

Retailers & Distributors

Online products and services

People and Organizations

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What can be branded?What can be branded?

Sports, Arts, and Entertainment (ManU,

movies)

Geographic locations (India, Kerala)

Ideas and causes (AIDS ribbons, WWF)

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How do brands provide value?How do brands provide value?

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Providing Value to the FirmProviding Value to the Firm

Enhance the effectiveness and efficiency ofmarketing programs - one of the rewards for

risk- taking

Decrease brand switching

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Providing Value to the FirmProviding Value to the Firm

Higher prices and margins (Brand-involvedconsumers bargain less)

Trade leverage

Competitive advantage - create entry

barriers

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Providing Value to CustomersProviding Value to Customers

Short cut for interpreting, processing andstoring information

Gives confidence in the purchasing decision

- reduces risk

Enhances use satisfaction

Invaluable - stable anchors in an otherwisechanging world

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BrandingBranding

Branding is about endowing products andservices with the power of brand equity

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Branding challenges andBranding challenges andopportunitiesopportunities

Savvy customers

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TradeMark

BrandingBrandingLove *

Mark

Trust-Mark

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Brand proliferation - line and brandextensions; new products and brands

(Yahoo!, Google, Orkut, Colgate)

Media fragmentation (Zipping, Zapping,Grazing, Channel Surfing)

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Increased competition (Clothing,computers, Airlines)

Increased costs

Greater accountability

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Brand EquityBrand Equity

Brand Equity is the added value endowedto products and services. This value may be

reflected in how consumers think, feel, and

act with respect to the brand, as well as theprices, market share, and profitability that

the brand commands for the firm.

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Brand EquityBrand Equity

. Brand equity is an important intangibleasset that has psychological and financial

value to the firm

Marketing Management: A South Asian Perspective, 12th edition - Kotler et al

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Issues in Managing BEIssues in Managing BE

The bases of brand equity

Creating brand equity

Managing brand equity over time

Forecasting erosion of equity The extension decision

Creating new names

Complex families of names and sub names

Brand equity measurement & evaluation

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Strategic Brand ManagementStrategic Brand Management

SBM involves the design andimplementation of marketing programs and

activities to build, measure, and manage

brand equity

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BrandBrand--building skillsbuilding skills

Creative, intelligent, innovative,venturesome, nurturing, disciplined and

service focused

Embody the brand itself Understand the underlying sources of brand

value and protect and build on them

Continually search out what makes the

brand unique

Suggested readingSuggested reading

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The New Strategic Brand Management byJ.N.Kapferer. Chapter 1 & 2

Marketing Management: A South AsianPerspective, 12th edition - Kotler et al.

Chapter: 10

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Strategic Brand Management by Kevin

Lane Keller. Chapter 1

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Documents