B R A N D I N G O F S E R V I C E S

BRANDING OF SERVICES

DR K V PRABHAKAR

Brands and Brand Symbols

Powerful brands such as these have brand equity: Coca-Cola brand -

$69 billion IBM brand - $53

billion Offers defense

against fierce price competition.

Major Branding Decisions

Line ExtensionDannon Yogurt Flavors

MultibrandsSeiko Lasalle & Pulsar

Brand ExtensionBarbie Electronics

New BrandsWindex (by acquisition)

Bra

nd

Nam

e

Existing New

Product Category

Existing

New

Four Brand Strategies

Brand Strategy

Line Extension Existing brand names extended to new forms, sizes,

and flavors of an existing product category. Brand Extension

Existing brand names extended to new or modified product categories.

Multibrands New brand names introduced in the same product

category. New Brands

New brand names in new product categories.

Who Does the Branding?Who Does the Branding?

BrandChoices

ManufacturerManufacturer

? ?

? ?

Who Does the Branding?Who Does the Branding?

BrandChoices

ManufacturerManufacturer

?

DealerDealer

?

? ?

Who Does the Branding?Who Does the Branding?

BrandChoices

ManufacturerManufacturerDealerDealer

? ?

GenericGeneric

? ?

Type of BrandType of Brand

BrandChoices

? ?

??Family BrandFamily Brand

BrandChoices

Family BrandFamily Brand

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??Individual BrandIndividual Brand

Type of BrandType of Brand

BrandChoices

? ?

??

LicensedLicensed

Type of BrandType of Brand

Family BrandFamily BrandIndividual BrandIndividual Brand

Characteristics of a Good Brand NameCharacteristics of a Good Brand Name

• Short and simple• Suggestive of product benefits• Legally available• Timeless rather than timely• No negative imagery• Easy to spell, read, and

pronounce• Adaptable for international

markets• Adaptable to

packaging/labeling needs• Adaptable to any advertising

medium

A GoodBrand Name

Is...

A GoodBrand Name

Is...

International BrandsInternational Brands

TOP GLOBAL BRANDS The ten most valuable brand names in the world

market are: Coca-cola, Microsoft, IBM, GE, Nokia, Intel, Disney,

Ford, McDonald’s, AT & T, Starbucks, Samsung, Financial Times, Xerox, Amazon.com, Yahoo, and Duracell

The biggest gainer in terms of brand value is the Starbucks which has 4434 stores on three different continents. A big reason for Starbuck’s success is that they put money into their employees rather than spend on advertising.

Starbucks is one of the first companies to ever offer part-time employees stock options and health benefits

CONTD., According to the CEO of the Starbucks, the

brand has to start with the culture and naturally extend to the customers

By creating a culture caring for their employees, the employees, in turn, care for the Starbucks customers.

Because of the large number of choices customers have in the market place, having an established, trusted, brand name is important

CONTD., With the rise in popularity of the Internet,

customers do not have to rely on traditional retailers for their brand select

They can purchase almost any brand they desire from the Internet

In addition, in most service categories, customers see little differences in the quality of various brands

With unlimited options and brand parity almost a norm, developing a top global brand presence is even more critical for success

Conditions Favorable to Building Brand FamiliarityConditions Favorable to Building Brand Familiarity

SevenConditions

Favorable to SuccessfulBranding

SevenConditions

Favorable to SuccessfulBranding

Conditions Favorable to Building Brand FamiliarityConditions Favorable to Building Brand Familiarity

1. Easy to identify by brand or trademark

1. Easy to identify by brand or trademark

2. Quality is best value for the price

2. Quality is best value for the price

3. Dependable and wide-spread availability

3. Dependable and wide-spread availability

4. Demand for general product class is large

4. Demand for general product class is large

5. Demand supports price needed to support brand

5. Demand supports price needed to support brandSeven

ConditionsFavorable to SuccessfulBranding

SevenConditions

Favorable to SuccessfulBranding

6. Economies of scale possible

6. Economies of scale possible

7. Favorable shelf locations possible7. Favorable shelf locations possible

Levels of Brand FamiliarityLevels of Brand Familiarity

Rejection

Non-recognition

Recognition

Preference

Change Position

Increase Awareness

Continue Education

Maintain Availability

Focus:

Focus:

Focus:

Focus :

InsistenceDevelop High Brand Equity

Focus :

GRACIAS !!!

Thank you for your attention!

Questions/Feedback

Short Break!