-
Customer Based Brand Equity Pyramid- Keller(Brand Resonance
Pyramid) Brand resonance- strong brand & consumer connect,
throusage & experience Strong resonant brands- increased
loyalty & decreased vulnerability to competition Brand
challenge- ensure right customer experiences to create right brand
knowledge Brand equity- customers develop differential towards
brand hence prefer it over others Understanding differential helps
interpret the past, design effective future programmes
! Building resonance involves a series of steps Identity- Who
are you- consumers begin to understand what a brand stands for,
means Meaning- What are you- consumers link in/tangible
association, understand PoD/PoP Response- What about you- judge
brands on credibility, expertise & trustworthiness
Relationships- What about you & me- How to connect, create
intense, active loyalty
Building blocks- structure to build brands with customers
Salience- consumers brand recall in a purchase situation- depth
& breadth of brand awareness Performance- What a brand does to
meet customers' functional needs- intrinsic properties Imagery-
Think abstractly than physically about brand, intangibles-
extrinsic brand properties Judgments- Customer brand evaluation
(performance+ imagery association)- brand opinions Feelings-
emotional brand response/ reaction (mild/intense; +/-, or
experiential / enduring) Experiential feelings (warmth, fun and
excitement)- immediate & short-lived Enduring feelings (sense
of security, social approval, self-respect), private, of day-to-day
life
Resonance- Intense, active loyalty- customers feel a connect to
brand, will miss it if it went away Nature of relationship, extent
to which customers feel they are in sync with a brand Behavioural
loyalty- repeat purchase rates Attitudinal attachment- intensity or
depth of psychological bond customers have with a brand Active
engagement- level of activity engendered by this loyalty Sense of
community- extent to which customers seek brand info, events, loyal
customers
Kapferers Brand Identity Prism (1997)
-
How 6 personality & physical facets define brand
identity
Helps marketers gauge brand identity, provide answers to
questions like- If the brand was a person, how would he look? What
traits would he have? Warm, cold, aggressive, approachable or
smart?
Knowing identity helps design strategy, positioning &
affects marketing collaterals
Physical facet, brand relationship and customer reflection are
externalization factors, rest represent internalization
Case- Brand identity of Adidas & Nike
Physique Core, central purpose, foundation What is the product,
what does it do, how does it add value, fill gaps Titan and Nokia
performance, Head & Shoulders dandruff
Personality Soul, what the brand would be if it were a person,
personality traits Disney fun, Woodland rugged, Raymond
well-groomed man
Reflection External mirror, how target identifies himself wrt
brand Brand reflects customers image outward, image of buyer using
brand Lux- beauty, Pepsi young, Thums up adventurous
Consumer mentalisation
Internal mirror, consumers attracted to brands where they see
own traits Self image, how the targeted identifies brand wrt self,
inner relationship Nike- athletic, sporty, Enfield Bullet- armed
forces
Relationship Intangible brand and consumer connect, exchanges,
experiences How should brand be seen by customers in marketing
communication? Nokia reliable friend
Culture Culture spawns brand values and principles which bind
customers Strong dimension, differential, internalises in customers
conscience VW- German engineering, Amul- Indian, HSBC World's local
bank
-
Key differences between the two companies are at the cultural
and the self-image level. Adidas stands for European culture,
traditional, conservative, collective & competent Nike
symbolises American way: individual & aggressive- Michael
Jordan, McEnroe Adidas connected to positive emotions, more to
competing than to winning Adidas- challenging oneself is exciting;
winning is reward, not reason for playing well Adidas personality
reflects true sportsmanship, good team player & strong work
ethic. Nike has a cool attitude, You dont win silver, you lose
gold, winning is paramount
7 Brand Architecture An organizing structure, family tree or
hierarchy of the brand portfolio that specifies brand roles and the
nature of relationships between brands and sub brands (Aaker &
Joakimsthaler)
Brand architecture is like a soccer team with the football pitch
as the market map, and each football player as a brand playing a
major, minor or support role. Hence individual players/brands will
benefit from identity and communication programs
The ideal portfolio Typical market/brand portfolio
Nike Adidas
Promo strategy focus on individual athletes Sponsors teams &
global events
External Physique Sports & fitness Sports & fitness
Relationship Sponsorship, ethics Quality & heritage
Reflection Aggressive, provocative, in-your- face
Sportsmanship, team player, strong work ethic
Internal Personality Michael Jordan, Tiger Woods Traditional,
conservative, collective
Culture American, Just Do It European, traditional
Self-Image Cool, trendy Competitor, competent
Reflection: true sportsman-
ship, A good team
player, strong work
ethic
Se lf-Image: Rel ates more to
competing t han t o
winning
Re lationshi p:Quali ty and
heritage
Personal ity: Tradi tional , conserva-
ti ve, collective
Physique: Sports and
fitness
Culture:European,
Traditional
Picture of Sender
Extern
aliz
ation In
tern
alizat
ion
Picture of Recipient
Adidas
Reflection:Aggressive,
provocative,
in-your-face
Se lf-Image: Cool, I am an
Athlete
Re lationshi p:Sponsorship,
ethi cs
Personal ity: Like Jordan,
Woods
Physique: Sports and
fitness
Culture:American,
Just do It!
Picture of Sender
Picture of Recipient
Extern
aliz
ation In
tern
alizat
ion
Nike
-
Source: Designing brand architecture (Davidson, 2002, portfolio
managing matters. Brand Strategy pp 28-29)
Objectives of brand architecture are- creating effective &
powerful brands, allocate brand building resources, create synergy,
clarity of product offering, leverage brand equity, and provide
platform for future growth.
!
Brand portfolio- all brands, subbrands, cobrands; add /extend/
delete brands Portfolio roles of each brand- Strategic Role-
important source of future profits/vision- Virgin Air, Tata indicom
Linchpin Role- brand provides key basis for customer loyalty. First
Citizen Club for Shoppers
Stop, J&J baby range Silver Bullet- brand positively
influences image of another brand- IBM Thinkpad boosted
public perceptions of IBM, Nano of Tata Motors Cash Cow-
significant customer base may not require high level of investment
but generates
funds to be invested in strategic, linchpin, silver-bullet
brands. Parle G, Nivea Creme
Design Your Portfolio Graphics Visual representations across
portfolio of brands- logos, packaging, symbols, product design,
layout of print ads, taglines- look and feel of each brand
presentation Do visual representations send right signals of
relationships between brands in portfolio? Exercise: put all
graphic representations of brand portfolio (logos, packs, mascots)
on
paper. Do they convey consistent message and support brand
portfolios structure
Develop Brand Portfolio Structure Brand portfolio structure is a
way of grouping brands to clarify logical relationships
-
Brand hierarchy tree for Indian Hotels- Taj Hotels, hallmark of
luxury and service But Taj tag was on every group hotel, guests
were confused what brand Taj stood for? Differentiated by quality
& service standards , hive off hotels not fitting
architecture
!
Exercise- clarify relationships among brands by drawing a brand
family tree.
Specify the Product-Market context of each brand Endorser
brands- Brand endorsed by parent or corporate brand where parent
brand is identified
with the brand, but, endorsed brand is given greater visual
weight than parent brand. The corporate/parent brand lends
credibility or assurance to endorsed brand without overpowering it
with its own associations. Cadburys Dairy Milk / Five Star. Xylys,
Swiss Made- Brought to you by Titan
Subbrand- A new brand combined with a product or corporate
brand. The subbrand can make the parent brand more vital and
relevant to a new consumer segment or within a new product
category. Ford Ikon- Flair, Hyundai Getz- Prime, Gillette Sensor
Excel
Benefit brands- branded features, components, or services that
augment the brand offering- Maruti Ritz with Kappa engine
Cobrands- combine your brand with brand/s from another firm to
create a unique offering- Citibank-Jet Platinum credit cards or
highlight an ingredient of another firm in your brand
communication- HP laptops with MS Office or Intel inside, Dolby
system in Multiplexes, Teflon coating in Pans, Carl Zeiss in mobile
cameras
Titan Brand Architecture
-
! House of Brands or Branded House
Brand architecture types: Common branding systems are
Branded House House of brands
Master brand strategy Product brand strategy
1 master brand across categories New brands /extensions / sub
brands
Harvard (HBR, HBS, Medical/Law), Nike Maruti (800, Alto, SX4,
Swift), P&G
Master brand does not connect in all markets (Nike Laptops,
Harvard Entertainment)
Easier for different brands to connect to different / adjacent
markets
Low branding costs/synergy- 1brand leveraged Costlier- separate
branding costs
Category failure may damage master brand Brand failure may not
affect firm
-
Brand Type Example Strategic Rationale
Corporate
Dominant
Corporate brand
Heinz GE Sony, Tata, Reliance, HP
Bear company name Highest in brand hierarchy Harnesses strong
corporate image synonymous with product class CD common, FMCG rare,
tech popular
Master brand
BMW Mont Blanc Nokia
Dominant, highest level in hierarchy Typically, only brand in
the system Corporate brands were master brands
Licensed brand
Calvin Klein, Disney Tommy Hilfiger
Name licensed out- fashion industry- clothes, leather, eyewear,
accessories
Parent brand
Godrej, Videocon
Brand extended to multiple categories May resemble corporate
brand Economical NPL, trust/assurance, marketing economies
Mixed Brands
House brand (family brand)
Tata, Amul
Diversified firms leverage corporate brand association across
segments/ categories if 2 product lines are incompatible (Titan
& Sonata premium & economy)
Dual brands (family / endorser brands)
Cadbury- 5 Star Gillette- Mach3 Ford-Ikon Tata Indica
Combine corporate + strong subbrand Subbrands help
differentiate, drive brand preference Umbrella for a family of
products extensions
Co-brands (ingredient brands)
Intel inside Teflon coated Dolby system
Raise perceived quality & familiarity of both brands Brand
exposure in absent product class
Brand
Dominant
Product/Mono brands (single brands)
Rexona, Crocin Nivea, Axe
Strong brand identity, need focused Corporate brand
insignificant, FMCG Expensive and risky but profitable Shelf
space/market share/extensions
Sub Brand Ford Ikon- Flair, Hyundai Getz- Prime, Gillette Sensor
Excel
New brand + parent/corporate brand in brand identity system
Subbrand draws on parent brand to target new segment or category
Enables existing consumer connect
-
8 Brand Portfolio Management
Brand Portfolio- Set of all brands/lines a firm offers to buyers
in a particular category. Multiple brands increase shelf presence,
attract variety seeking consumers, help new market
entry & yield economies of scale in advertising, sales &
distribution Portfolio maximises brand equity & market
coverage, minimises brand overlap Differentiation appeals to a
sizeable segment & justify marketing and production costs
Critical- Portfolio monitoring & pruning of weak and
unprofitable brands Maruti- 800, Alto, A-Star, Estilo, Wagon-R,
Ritz, Swift, Desire, etc & their variants
Product Branding Separate brand, own identity, image & set
of associations, company not prominent Paras- Moov, DCold, Livon,
Dermicool, Freshia, CavinKare- Chic shampoo, Spinx perfumes, Meera
Herbal, Nyle Shampoo HUL- Rexona, Axe, Close Up, Taj Tea, Lipton
Tea, Surf, Wheel
Line Branding Brand successful in a category for a targeted
consumer group, is extended to other product lines
in the category/ adjacent categories, but catering to same
groups needs. Product lines cater to different needs, cosmetics-
lipstick, nail polish, moisturizers, beverages-
flavours, ketchups/ mineral water/ biscuits- pack sizes, cars-
variants. Identity of the main brand is leveraged across other
extensions Line branding restricted to adjacent territories &
complementary products. Gillette razors and cartridges- Vector,
Sensor, Mach 3, Turbo; shaving gels, deos, LOreal-
cosmetics, beauty, shampoos, skin, salons Amar Chitra Katha-
comics (print), mobile, TV, Cinema, online
Range Branding Built on common association, competence or
promise of the main brand or firm Brands common position/
association spread across related and unrelated categories
Kingfisher symbolizes the good times- extended across Beer,
airlines and soccer Godrej symbolizes century of trust &
reliability- FMCG, CD, realty, furniture, locks
Umbrella Branding One brand for all products/categories, drawing
on the strength of the master brand Safer, cheaper than building
new brand, association should strategically fit categories Samsung-
TV, fridge, washing machines, mobiles, hard disk, monitors, laptops
Virgin- Airlines, Cola, Music, Moon travel, mobile,
entertainment
Source/Double Branding Corporate + new brand (combination of
umbrella & product branding strategy) Equal prominence in
communication and branding for both brands Brand benefits from
corporate brands image or adds subtracts to/ from it. Hyundai name
precedes Santro, Getz, i10, i20, Verna, Tucson Johnnie Walker
Scotch Whisky Red label, Green label, Black label & Blue
label
Endorsement Branding Similar to source branding, but product
brand more significant than corporate brand
-
Corporate brand conveys basic associations, augmented by the
product brand Cadburys precedes Dairy Milk, 5 Star, Fruit &
Nut, Celebrations, Temptations Polo by Ralph Lauren, Armani-
Signature, Collezioni, Exchange, Junior
Brand Extension Extend existing brand to new products, services,
or consumer segments Existing brand + new brand, new brand is
called subbrand If executed well, brand extensions broaden and
clarify brand meaning, if not, dilute or confuse
brand meaning. Kingfisher (Beer to Airlines) and Amul (Milk
& Foods).
%LDevising the Branding Strategy NPL 3 choices: Develop new
brand elements for new product, apply some of its existing brand
elements, use a combination of new and existing brand elements
Brand extension- use an established brand to introduce a new
product-Gillete Sensor Sub-brand- new brand combines with an
existing brand- Gillete Sensor Excel Parent brand- the existing
brand which gives birth to a brand extension- Gillette Family
brand- Parent brand already associated with multiple products
through brand extensions.
Cadbury
Brand extensions can be broadly classified into two general
categories:
1.Line extension- parent brand used to brand a new product,
target new market segment within a product category currently
served by parent brand Maggi Noodle SKUs
2.Category extension- when parent brand is used to enter a
different product category from that currently served by the parent
brand- Kingfisher Beer to Airlines
3.Brand line- All products- original, line & category
extensions, sold under a particular brand- Godrej, Videocon,
Heinz
4.Brand mix (brand assortment) - all brand lines of a firm
available to buyers HUL- Close-up, Pepsodent
Brand name
Product category
Old New
Old Line extension-(New SKU, flavours- Mirinda lemon, Rasna
mango, Pepsi 1.5L)
Brand extension- (Titan Raga, Junior Horlicks)
New Sub brand- (Gillette Sensor Excel, Ford Ikon Flair, Kellogg
Frosties K)
New brand- (Maruti Ritz, Tata Nano)