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Page 1: Brand Management

BRAND ManagementBRAND Management

Page 2: Brand Management

What is a brand?What is a brand?

A name, a term

A symbol, a sign

“A name, term, sign, symbol or any other feature that identifies one seller’s product or service as distinct from those of other sellers” -The American Marketing Association

Page 3: Brand Management

Brand can beBrand can be

►Logo – shortcut to remindLogo – shortcut to remind►ColoursColours►ShapeShape►LetterLetter► ImagesImages►TunesTunes►PhrasesPhrases►CelebratiesCelebraties

Page 4: Brand Management

Functions of BrandingFunctions of Branding

► Helps in Identification and gives distinctiveness to Helps in Identification and gives distinctiveness to the productthe product

► Indirectly denotes quality and standardIndirectly denotes quality and standard► Eliminates ImitationEliminates Imitation► Ensures legal right to the product (Trademark, Ensures legal right to the product (Trademark,

patents, copyrights…)patents, copyrights…)► Helps in advertising and packagingHelps in advertising and packaging► Helps in price differentiation of the productHelps in price differentiation of the product

Page 5: Brand Management

Characteristics of a Strong Characteristics of a Strong BrandBrand

► Brand name should describe its natureBrand name should describe its nature► Easy to remember and pronounceEasy to remember and pronounce► Act as a stimulating trigger to customersAct as a stimulating trigger to customers► Brand portfolio and hierarchy should make Brand portfolio and hierarchy should make

sensesense► Brand should properly positionedBrand should properly positioned► Brand should be consistentBrand should be consistent► Brand should be given continuous support Brand should be given continuous support

and monitoringand monitoring

Page 6: Brand Management

Scope of BrandingScope of Branding

To teach the customers the following:-To teach the customers the following:-

1.1. ““Who the product”- name, other Who the product”- name, other elementselements

2.2. ““What the product does”What the product does”

3.3. ““Why the consumers should buy”Why the consumers should buy”

Page 7: Brand Management

Brand relationships Brand relationships

Brand identityframed by marketers

Brand imagein the mind of customers

Brandthe actual image of the

firm in customers’ minds

Brand relationships

Branding process

FIRM CUSTOMERSINTERACTIONS

A new definition based on Brand relationships:A new definition based on Brand relationships: Brand is created in Brand is created in continuously developing brand relationships where the customer continuously developing brand relationships where the customer forms a differentiating image of a product or service based on all forms a differentiating image of a product or service based on all kinds of brand contacts that the customer is exposed to.kinds of brand contacts that the customer is exposed to.

Page 8: Brand Management

Brand IdentityBrand Identity

Brand Identity is what the Brand Identity is what the owner wants to communicate owner wants to communicate

to its potential costumers.to its potential costumers.

Page 9: Brand Management

BRAND IMAGEBRAND IMAGE

A unique set of associations in the A unique set of associations in the minds of customers concerning minds of customers concerning what a brand stands for and the what a brand stands for and the

implied promises the brand implied promises the brand makes. makes.

Page 10: Brand Management

Image communicatesImage communicates expectations expectations

Image is aImage is a filter influencing filter influencing perceptions perceptions of the performance of the of the performance of the firm firm

Image isImage is a function of expectations a function of expectations and and experiencesexperiences

Image hasImage has an internal impact an internal impact on on employeesemployees

The importance of imageThe importance of image

Page 11: Brand Management

Image and IdentityImage and Identity

Brand identity Signalstransmitted

Brand image

Sending Media Receiving

CompetitionAnd Noise

Page 12: Brand Management

Contd..Contd..►BRAND IMAGE BRAND IMAGE is a unique set of is a unique set of

associations in the minds of customers associations in the minds of customers concerning what a brand stands for and concerning what a brand stands for and the implied promises the brand makes. the implied promises the brand makes.

►BRAND IDENTITY BRAND IDENTITY is the strategic goal is the strategic goal for the unique set of associations that a for the unique set of associations that a brand should stand for. These brand should stand for. These associations also imply a potential associations also imply a potential promise to customers. promise to customers.

►PERCEPTION GAP.PERCEPTION GAP.

Page 13: Brand Management

Brand HierarchyBrand Hierarchy

Brand Hierarchy is how an organization Brand Hierarchy is how an organization organizes the various named entities within organizes the various named entities within its portfolio, and how they relate to each its portfolio, and how they relate to each other. other.

The four general types of Hierarchy are:The four general types of Hierarchy are:

1. Master brand : Maruti Suzuki1. Master brand : Maruti Suzuki

2. Brand/sub brand : Maruti2. Brand/sub brand : Maruti

3. Endorsed brand : Maruti Esteem3. Endorsed brand : Maruti Esteem

4. Separate (stand-alone or independent) 4. Separate (stand-alone or independent) brands: LXi/ SXibrands: LXi/ SXi

Page 14: Brand Management

Top 10 Global Brands*Top 10 Global Brands*

* http://www.interbrand.com/best_global_brands.aspx

Page 15: Brand Management

Brand PositioningBrand Positioning

►Brand PositioningBrand Positioning““Positioning is how a product appears in Positioning is how a product appears in

relation to other products in the market”relation to other products in the market” Brand positioning is all about identifying Brand positioning is all about identifying

the optimal location in our customers’ the optimal location in our customers’ minds for our Brand vis-à-vis with our minds for our Brand vis-à-vis with our competitorscompetitors

Proper positioning makes it easier to Proper positioning makes it easier to facilitate understanding of our Brandfacilitate understanding of our Brand

Page 16: Brand Management

Developing a Positioning Developing a Positioning StrategyStrategy

►Positioning is not what you do with a Positioning is not what you do with a product but what you do in the mind of product but what you do in the mind of the prospects.the prospects.

►Positioning requires determining the Positioning requires determining the frame of reference by identifying frame of reference by identifying

►Target market Target market ►CompetitionCompetition►POP’s and POD’SPOP’s and POD’S

Page 17: Brand Management

Category membershipCategory membership

► Starting point in brand positioning is to Starting point in brand positioning is to determine Category Membership.determine Category Membership.

► Category membership is product or set of Category membership is product or set of products with a brand competes and which products with a brand competes and which functions as close substitutesfunctions as close substitutes

► Three main ways to determine category Three main ways to determine category membership:-membership:-

► Announcing category benefitAnnouncing category benefit► Comparing to exemplarsComparing to exemplars► Relying on the product descriptorsRelying on the product descriptors

Page 18: Brand Management

Target MarketTarget Market

Consumer AggregatesConsumer Aggregates

Current usersCurrent users

Potential usersPotential users

Competitive usersCompetitive users

Consumer SegmentsConsumer Segments

BehavioralBehavioral

Dem/psych/geoDem/psych/geo

Page 19: Brand Management
Page 20: Brand Management

Points of Difference & ParityPoints of Difference & Parity

DifferenceDifference►Strong, favorable, uniqueStrong, favorable, unique►Attribute or benefitAttribute or benefit

ParityParity

• • Shared with other brandsShared with other brands

• • Important for brand extensionsImportant for brand extensions

Page 21: Brand Management

POP’SPOP’S

►Point of Parity (POP)Point of Parity (POP)►Two Types Two Types ►Category : attributes that are required Category : attributes that are required

to include your product as a member to include your product as a member of that category.of that category.

►Competitive: POP’s that negate your Competitive: POP’s that negate your competitor's POD’scompetitor's POD’s

►POP’s should be “good enough” but POP’s should be “good enough” but POD’s should be superiorPOD’s should be superior

Page 22: Brand Management

Choosing the differentiating Choosing the differentiating strategystrategy

►Product differentiationProduct differentiation►Personal differentiationPersonal differentiation►Channel differentiationChannel differentiation► Image differentiationImage differentiation

Page 23: Brand Management

Choosing the pop’s and pod’sChoosing the pop’s and pod’s

►RelevanceRelevance►DistinctivenessDistinctiveness►BelievabilityBelievability►FeasibilityFeasibility►CommunicabilityCommunicability►SustainabilitySustainability

Page 24: Brand Management

Proper PositioningProper Positioning

►Clarifies what the Brand is all aboutClarifies what the Brand is all about►How it is both unique and similar to How it is both unique and similar to

competitive brandscompetitive brands►Why customers should purchase and Why customers should purchase and

use the Branduse the Brand

Page 25: Brand Management

5 Factors of Brand 5 Factors of Brand Positioning Positioning

1. 1. Brand AttributesBrand Attributes : What the brand delivers through features : What the brand delivers through features and and benefits to consumers. benefits to consumers.

2. 2. Consumer ExpectationsConsumer Expectations : What consumers expect to receive : What consumers expect to receive from the from the brand. brand.

3. 3. Competitor attributes:Competitor attributes: What the other brands in the market What the other brands in the market offer offer through features and benefits to consumers. through features and benefits to consumers.

4. 4. Price Price : An easily quantifiable factor – Your prices vs. your : An easily quantifiable factor – Your prices vs. your competitors’ competitors’ prices. prices.

5. 5. Consumer perceptionsConsumer perceptions: The perceived quality and value of : The perceived quality and value of your brand your brand in consumer’s minds (i.e., does your brand in consumer’s minds (i.e., does your brand

offer the cheap solution, the good value for offer the cheap solution, the good value for the the money solution, the high-end, high-price tag money solution, the high-end, high-price tag

solution, etc.?). solution, etc.?).

Page 26: Brand Management

The Process of Positioning The Process of Positioning

Generally, the product positioning process involves: Generally, the product positioning process involves:

► Defining the market in which the product or Defining the market in which the product or brand will compete (who the relevant buyers are) brand will compete (who the relevant buyers are)

► Identifying the attributes (also called dimensions) Identifying the attributes (also called dimensions) that define the product 'space' that define the product 'space'

► Collecting information from a sample of Collecting information from a sample of customers about their perceptions of each customers about their perceptions of each product on the relevant attributes product on the relevant attributes

Page 27: Brand Management

Positioning- ToothpastePositioning- Toothpaste

Four main segments:Four main segments:

► Flavor and product Flavor and product appearanceappearance

► Brightness of teethBrightness of teeth

► Decay PreventionDecay Prevention

► Low PriceLow Price

Price Positioning

Flavor, Brightness

Decay Prevention

Page 28: Brand Management

Brand EquityBrand Equity

► Brand Equity is the value of a brand built up Brand Equity is the value of a brand built up over a period of time. It is composed of four over a period of time. It is composed of four components namely Image, Perception, components namely Image, Perception, Awareness and Loyalty.Awareness and Loyalty.

► David Aaker defines brand equity as: “A set of David Aaker defines brand equity as: “A set of assets and liabilities linked to a brand's name assets and liabilities linked to a brand's name and symbol that adds to or subtracts from the and symbol that adds to or subtracts from the value provided by a product or service to a value provided by a product or service to a firm and/or that firm's customers” firm and/or that firm's customers”

► Brand Equity is an asset that can be sold or Brand Equity is an asset that can be sold or leasedleased

Page 29: Brand Management

►BE is an important intagible assets BE is an important intagible assets that has psycological and financial that has psycological and financial value to the firm.value to the firm.

Page 30: Brand Management

Measuring Brand EquityMeasuring Brand Equity

► Brand Audit – It is a consumer focused exercise that Brand Audit – It is a consumer focused exercise that involves a series of procedures to assess the health involves a series of procedures to assess the health of a brand, uncover sources of brand equity, of a brand, uncover sources of brand equity, suggest ways to leverage that equity.suggest ways to leverage that equity.

► Is current brand equity satisfactoryIs current brand equity satisfactory► What brand associations needs to be strengthenedWhat brand associations needs to be strengthened► What brand opportunity existWhat brand opportunity exist► What potential challenges exist from the brand What potential challenges exist from the brand

equity.equity.► As a result strategic analysis to develop a new As a result strategic analysis to develop a new

marketing program to maximize long term brand marketing program to maximize long term brand equityequity

Page 31: Brand Management

Steps of Brand AuditSteps of Brand Audit

► Brand Inventory:- Provides a current comprehensive Brand Inventory:- Provides a current comprehensive profile of how all the product and services sold by a profile of how all the product and services sold by a company are marketed and branded.company are marketed and branded.

► Marketers helps in assesing and finding the Marketers helps in assesing and finding the consistency od diff product and services sharing the consistency od diff product and services sharing the same brand name.same brand name.

► Brand Exploratory:- It is a research activity Brand Exploratory:- It is a research activity conducted to understand what consumers think and conducted to understand what consumers think and feel .Surveys,questionnaire,interviewhelps in feel .Surveys,questionnaire,interviewhelps in generate ideas , insights,generate ideas , insights,

► Techniques are used as projective Techniques are used as projective technique,vizualizationword association test.technique,vizualizationword association test.

Page 32: Brand Management

Brand TrackingBrand Tracking

► Collect information from consumers on a Collect information from consumers on a regular basis time to time regular basis time to time

► Helps in providing information how their Helps in providing information how their marketing programs and brands are marketing programs and brands are performinhperforminh

► Tracking studies are a means of Tracking studies are a means of understanding where, how much, and in understanding where, how much, and in what ways brand values is been created.what ways brand values is been created.

► Helps in facilitating day to day decision Helps in facilitating day to day decision making.making.

Page 33: Brand Management

Brand ValuationBrand Valuation

► It is the total financial worth of the It is the total financial worth of the brand.brand.

►Premium charged*no of units sold.Premium charged*no of units sold.

Page 34: Brand Management

Managing Brand EquityManaging Brand Equity

► Brand Reinforcement – consistently convey Brand Reinforcement – consistently convey the meaning of the brand to customersthe meaning of the brand to customers What the core brand represents, benefits supplied, What the core brand represents, benefits supplied,

which needs it satisfieswhich needs it satisfies How brand makes those product/service superior How brand makes those product/service superior

and which strong favorable unique brand and which strong favorable unique brand association should exist in the mind of customerassociation should exist in the mind of customer

Requires new product introductionRequires new product introduction Requires consistency of marketing support (new Requires consistency of marketing support (new

offerings, new promotions)offerings, new promotions) Example- Nivea from skin crème to skin care and Example- Nivea from skin crème to skin care and

personal care products.personal care products. Early 70s brand still a leader-coke Early 70s brand still a leader-coke

kodak,hienz,wrigleyskodak,hienz,wrigleys

Page 35: Brand Management

Brand RevitalizationBrand Revitalization

► Brand Revitalization –Brand Revitalization – Go back to basics of Go back to basics of

consumer needs and consumer needs and wants – finding gaps in wants – finding gaps in market or at the other market or at the other end of spectrum – go for end of spectrum – go for reinvention (Intel).reinvention (Intel).

Revitalization finds Revitalization finds elements of both of the elements of both of the above, to refresh existing above, to refresh existing sources or find new sources or find new sources of brand equity sources of brand equity e.g. Lifebuoye.g. Lifebuoy

Page 36: Brand Management

Reasons of Brand Reasons of Brand RevitalizationRevitalization

► A new competitor may have taken over the A new competitor may have taken over the category and the company is struggling to generate category and the company is struggling to generate revenues from the current product (colgate-closeup)revenues from the current product (colgate-closeup)

► A new variant has to be launched in order to regain A new variant has to be launched in order to regain market share.market share.

► The whole product or service category may be The whole product or service category may be declining, and a brand could be one of many brands declining, and a brand could be one of many brands that could use revitalizationthat could use revitalization

► Revitalization may be needed in order to Revitalization may be needed in order to communicate category leadership, as well as communicate category leadership, as well as develop an energized new visual identity systemdevelop an energized new visual identity system

► Brand may no longer meet the consumers’ needs or Brand may no longer meet the consumers’ needs or desires, where in the consumer has shifted to a desires, where in the consumer has shifted to a different platform.different platform.

Page 37: Brand Management

► Revitalization may just be a need increase market Revitalization may just be a need increase market share as the brand image may be becoming less share as the brand image may be becoming less relevant to people.relevant to people.

► It may be time to re-position the product or It may be time to re-position the product or rejuvenation may be a spike in promotion activity.rejuvenation may be a spike in promotion activity.

► The brand has lost its unique point of differentiation The brand has lost its unique point of differentiation and thus looking to revitalize the product or brand and thus looking to revitalize the product or brand with a new image.with a new image.

► The target market for the brand has aged, and the The target market for the brand has aged, and the brand hasn’t managed to renew its positioning in brand hasn’t managed to renew its positioning in the minds of the next generation of consumers as the minds of the next generation of consumers as was the case with.(lalita ji – surf)was the case with.(lalita ji – surf)

► Consumers’ needs have shifted from price to valueConsumers’ needs have shifted from price to value

Page 38: Brand Management

ExamplesExamples

►Mountain Dew – introduced in 1969 Mountain Dew – introduced in 1969 ►(yahoo mountain)(yahoo mountain)►1990- Do the Dudes (young males)1990- Do the Dudes (young males)►2000- Do the dew2000- Do the dew

Page 39: Brand Management

Brand CrisisBrand Crisis

►Critical of planning is planning for worstCritical of planning is planning for worst►Smart company have effective Smart company have effective

corporate crisis management policy.corporate crisis management policy.►Careful preparation and well managed Careful preparation and well managed

Crisis management program ensures Crisis management program ensures corporate credibility and corporate credibility and trustworthiness trustworthiness

►Example – Frozen pizza, packaged MilkExample – Frozen pizza, packaged Milk

Page 40: Brand Management

Brand Equity ModelsBrand Equity Models

►Brand Asset valuatorBrand Asset valuator

►Aakers ModelAakers Model►Brandz Brandz ►Brand RssonanceBrand Rssonance

Page 41: Brand Management

Aakers modelAakers model

► Viewed BE as a 5 categories of asstes and liabilities Viewed BE as a 5 categories of asstes and liabilities linke to a brand that adds and subtract to the valuelinke to a brand that adds and subtract to the value

► Brand loyaltyBrand loyalty► Brand awarenessBrand awareness► Percieved qualityPercieved quality► Brand associationBrand association► Other proprietory assets such as trademark patents Other proprietory assets such as trademark patents

and channel relationship.and channel relationship.► Imp concept in building BE is Brand Identity who Imp concept in building BE is Brand Identity who

had 4 prospectives had 4 prospectives ► Brand as product, brand as organization, brand as Brand as product, brand as organization, brand as

person,brand as symbolperson,brand as symbol

Page 42: Brand Management

Factors influencing Brand Factors influencing Brand EquityEquity

Page 43: Brand Management

Positive or Negative Brand Positive or Negative Brand EquityEquity

Page 44: Brand Management

Brand ExtensionBrand Extension

►Brand extension or brand stretching is Brand extension or brand stretching is a marketing strategy in which a firm a marketing strategy in which a firm marketing a product with a well-marketing a product with a well-developed image uses the same brand developed image uses the same brand name in a different product category. name in a different product category. The new product is called a spin-off. The new product is called a spin-off. Organizations use this strategy to Organizations use this strategy to increase and leverage brand equity increase and leverage brand equity

Page 45: Brand Management

Benefits of ExtensionBenefits of Extension

► Price premium that a brand commands over a Price premium that a brand commands over a generic productgeneric product

► Reduce risk perceived by customersReduce risk perceived by customers► Increase the probability of distribution and trialIncrease the probability of distribution and trial► Increase efficiency of promotional expendituresIncrease efficiency of promotional expenditures► Reduce costs of introductory programsReduce costs of introductory programs► Avoid cost of developing a new brandAvoid cost of developing a new brand► Create opportunities to extend into more Create opportunities to extend into more

distant product categoriesdistant product categories► Build equityBuild equity

Page 46: Brand Management

Line Extension StrategyLine Extension Strategy

►When a brand is used to brand a When a brand is used to brand a new product that targets a new new product that targets a new market segment within a product market segment within a product category currently served by the category currently served by the parent brand.parent brand.

►Examples:Examples: Coca-Cola dietCoca-Cola diet Colgate for KidsColgate for Kids

Page 47: Brand Management

Line StrategyLine Strategy

►Horizontal: the brand extends to new Horizontal: the brand extends to new varieties of the product. E.g. varieties of the product. E.g. pineapple, strawberry, Mango.pineapple, strawberry, Mango.

►Vertical: the brand extends up or down Vertical: the brand extends up or down in terms of product quality. E.g., Base in terms of product quality. E.g., Base & premium& premium

Page 48: Brand Management

Brand Category Extension Brand Category Extension StrategyStrategy

►Effort to use a successful brand name Effort to use a successful brand name to introduce a new product into a to introduce a new product into a different product category. different product category.

Examples:Examples: Nike MP4 playerNike MP4 player Colgate toothbrushColgate toothbrush Lilliput- Kids ShoesLilliput- Kids Shoes

Page 49: Brand Management

Important Factors for Extending Important Factors for Extending Brands Brands

Success of Success of BrandBrand

ExtensionsExtensions

• Evaluation

•Fit

•Brand Strength

BRAND/FIRM

CONSUMERS•Knowledge

•InformationMARKET

EXTENSIONEXTENSION

•Risk Aversion

•Characteristic and Nº Competitors

POSITIONINGPOSITIONING

• Choice Shares• Sales

• Perceived Risk• Profit•Market Share

Page 50: Brand Management

Disadvantages of Brand Disadvantages of Brand Extensions Extensions

►Can fail and hurt parent brand imageCan fail and hurt parent brand image►Can succeed but diminish Can succeed but diminish

identification with any one categoryidentification with any one category►Can dilute brand meaningCan dilute brand meaning►Can forgo the chance to develop a new Can forgo the chance to develop a new

brandbrand►Can damage company credibilityCan damage company credibility

Page 51: Brand Management

What is brand personality?What is brand personality?

►Brand Personality is a set of human Brand Personality is a set of human characteristics associated with a characteristics associated with a brandbrand

►Personality is how the brand behavesPersonality is how the brand behaves

►Gender, age, socio-economic class, Gender, age, socio-economic class, psychographic, emotional psychographic, emotional characteristicscharacteristics

Page 52: Brand Management

Some ExamplesSome Examples

►MarlboroMarlboro is ‘masculine’ while is ‘masculine’ while Virginia Virginia SlimsSlims is ‘feminine’ is ‘feminine’

►IBMIBM is ‘older’ while is ‘older’ while AppleApple is ‘younger’ is ‘younger’

►India TodayIndia Today is ‘old-fashioned’ while is ‘old-fashioned’ while OutlookOutlook is ‘trendier’ is ‘trendier’

►CokeCoke is ‘conforming’ while is ‘conforming’ while PepsiPepsi is is ‘irreverent’‘irreverent’

Page 53: Brand Management

About Brand PersonalityAbout Brand Personality

► Brand Personality, like human personality, is Brand Personality, like human personality, is both distinctive and enduringboth distinctive and enduring Both are built over a period of timeBoth are built over a period of time

► Refers to the outcome of all the consumer’s Refers to the outcome of all the consumer’s experiences with the brandexperiences with the brand

► In other words, the brand’s personality is the In other words, the brand’s personality is the weighted average of previous impressionsweighted average of previous impressions

► In consumer’s mind, these impressions In consumer’s mind, these impressions merge to form an overall concept of what to merge to form an overall concept of what to expect from brandexpect from brand

Page 54: Brand Management

Some MoreSome More

►Brand Personality is eagerly searched by Brand Personality is eagerly searched by brand strategists and researchersbrand strategists and researchers

►Differences in responses by different Differences in responses by different consumers provide useful insightsconsumers provide useful insights

►For example, users of a product will For example, users of a product will perceive a brand different from non-perceive a brand different from non-usersusers

Page 55: Brand Management

Why use brand personalityWhy use brand personality

Enriches understandingEnriches understanding► Helps gain an in-depth understanding of Helps gain an in-depth understanding of

consumer perceptions of and attitudes consumer perceptions of and attitudes towards the brandtowards the brand

► Can provide more insight than is gained by Can provide more insight than is gained by asking about attribute perceptionsasking about attribute perceptions

► For ex., For ex., Microsoft, IBMMicrosoft, IBM etc., etc.,

Page 56: Brand Management

Why Use brand personalityWhy Use brand personality

Contributes to a differentiating identityContributes to a differentiating identity►Can differentiate brands especially where Can differentiate brands especially where

brands are similar in product attributesbrands are similar in product attributes

► In fact, it can define not only the brand In fact, it can define not only the brand but the product class context and but the product class context and experienceexperience

►MercedesMercedes Vs Vs BMWBMW; ; Clinic PlusClinic Plus Vs Vs PantenePantene

Page 57: Brand Management

Why use ……Why use ……

Guides the communication effortGuides the communication effort►Communicates the brand identity with Communicates the brand identity with

richness and texturerichness and texture

► If the brand is specified only in terms If the brand is specified only in terms of attribute associations, very little of attribute associations, very little meaningful guidance is providedmeaningful guidance is provided Is Is NikeNike shoes or sports, performance and shoes or sports, performance and

attitude?attitude?

Page 58: Brand Management

Why use…Why use…

Creates brand equityCreates brand equity►Builds long-term brand equityBuilds long-term brand equity

►Differentiates the brand and makes it Differentiates the brand and makes it distinct from other competitive offeringsdistinct from other competitive offerings

►Serves as a powerful relationship deviceServes as a powerful relationship device

Page 59: Brand Management

SponsorshipsSponsorships

►Activities such as events sponsored by Activities such as events sponsored by the brand will influence its personalitythe brand will influence its personality

►Pond’sPond’s sponsoring sponsoring Femina’sFemina’s ‘Miss ‘Miss India’ contestIndia’ contest

►MRF Formula-1 racing championshipMRF Formula-1 racing championship

Page 60: Brand Management

AgeAge

►How long a brand has been on the How long a brand has been on the market can affect its personalitymarket can affect its personality

►New entrants like New entrants like AppleApple, , OutlookOutlook etc., etc., tend to have younger brand tend to have younger brand personalities than personalities than IBMIBM, , India TodayIndia Today etc.,etc.,

Page 61: Brand Management

SymbolSymbol

►A symbol can be a powerful influence on A symbol can be a powerful influence on brand personality since it can be brand personality since it can be controlled and can have extremely controlled and can have extremely strong associationsstrong associations

►Some examples…Some examples… Apple’sApple’s bitten apple bitten apple Nike’sNike’s swoosh swoosh MetLife’sMetLife’s PeanutsPeanuts character character

Page 62: Brand Management

To Sum Up……To Sum Up……

► A brand personality can help a brand in several A brand personality can help a brand in several ways:ways: It can provide a vehicle for customers to express their own It can provide a vehicle for customers to express their own

identityidentity A brand personality metaphor helps suggests the kind of A brand personality metaphor helps suggests the kind of

relationship that customer has with brandrelationship that customer has with brand Brand personalities serve to represent and cue functional Brand personalities serve to represent and cue functional

benefits and product attributes wellbenefits and product attributes well

► Importantly, brand personality is often a Importantly, brand personality is often a sustainable point of differentiationsustainable point of differentiation Sustainable because it is very difficult to copy a personalitySustainable because it is very difficult to copy a personality

Page 63: Brand Management

Brand CreationBrand Creation

►Brand creation is about answering:-Brand creation is about answering:- What to launch?What to launch? Where to launch?Where to launch? When to launch?When to launch? How to launch?How to launch? For whom to launch?For whom to launch? Brand creation is striking a sync between: Brand creation is striking a sync between:

Brand pricing-Brand distribution-Brand Brand pricing-Brand distribution-Brand quality-Brand Image-Brand benifitsquality-Brand Image-Brand benifits

Page 64: Brand Management

Some More….Some More….

►Brand creation is the birth of a brandBrand creation is the birth of a brand► It is not only naming or symbolically It is not only naming or symbolically

tagging but goes beyond thattagging but goes beyond that►Headed towards fulfilling all promises Headed towards fulfilling all promises

and top class services.and top class services.►Brand creation is an expensive and Brand creation is an expensive and

tricky affairtricky affair

Page 65: Brand Management

ExamplesExamples

►Nike - tick mark (always right)Nike - tick mark (always right)►Wipro – spent Rs 35 crore for new logo Wipro – spent Rs 35 crore for new logo

(applying thaught)(applying thaught)►VideoconVideocon

Page 66: Brand Management

Brand Customer RelationshipBrand Customer Relationship

►Brand are essentially the collective Brand are essentially the collective perceptions of an organizations key perceptions of an organizations key constituents(customer,supplier,inverstconstituents(customer,supplier,inverstor,employee etc..)or,employee etc..)

►Defined more by deeds than by wordsDefined more by deeds than by words►Brand is how your customer Brand is how your customer

experience what you do.experience what you do.

Page 67: Brand Management

Steps to build strong customer Steps to build strong customer RelationshipRelationship

► Clearly articulate your brand identityClearly articulate your brand identity► Establish a customer value propositionEstablish a customer value proposition► A Strong Vision Regarding Service that is Clearly A Strong Vision Regarding Service that is Clearly

CommunicatedCommunicated► Constant Service “Talk”Constant Service “Talk”► Customer Friendly SystemsCustomer Friendly Systems► A Balance Between Technology and the Personal A Balance Between Technology and the Personal

TouchTouch► Do the optimal customer experience and create a Do the optimal customer experience and create a

holistic brand experienceholistic brand experience► Cultivate relationship and treat them carefully by Cultivate relationship and treat them carefully by

listening what are u told , learn from it and respondlistening what are u told , learn from it and respond

Page 68: Brand Management

Devising a Branding strategyDevising a Branding strategy

►Can develop new brand element for Can develop new brand element for new productnew product

►Can apply some of its brand elementCan apply some of its brand element►Can use a combination of new and Can use a combination of new and

existing brand elements.existing brand elements.

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Branding StrategyBranding Strategy

New ProductsNew ProductsBrand extension – use established brand name to launch a new productBrand extension – use established brand name to launch a new productSub-brand – combine a new brand with an existing brand (Adobe Acrobat Sub-brand – combine a new brand with an existing brand (Adobe Acrobat

software,Toyata camary automobiles,american express bluecards)software,Toyata camary automobiles,american express bluecards)Parent brand – existing brand gives birth to a brand extension (Procter $ Parent brand – existing brand gives birth to a brand extension (Procter $

Gamble)Gamble)Family brand – parent brand associated with multiple brand extensions Family brand – parent brand associated with multiple brand extensions

e.g. Kellogg’s, Heinz, DelMonte)e.g. Kellogg’s, Heinz, DelMonte)Line extension – use of a parent brand to brand a new product, targeting Line extension – use of a parent brand to brand a new product, targeting

anew market segment served by the parent (e.g. new flavors)anew market segment served by the parent (e.g. new flavors)Category extension (brand stretching – use of a parent brand to enter a Category extension (brand stretching – use of a parent brand to enter a

different product category from that served by the parent (Yamaha ---different product category from that served by the parent (Yamaha ---motorbikes to pianos, sports equipment)motorbikes to pianos, sports equipment)

Brand line – all products sold under a particular brand (Heinz 57)Brand line – all products sold under a particular brand (Heinz 57)Brand mix – set of all brands offered to buyers (P & G has 71 brands)Brand mix – set of all brands offered to buyers (P & G has 71 brands)Branded variants – specific brand lines supplied to particular retailers or Branded variants – specific brand lines supplied to particular retailers or

channels (e.g. Guinness Stout, Guinness Extra Stout)channels (e.g. Guinness Stout, Guinness Extra Stout)

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Financial aspects of BrandFinancial aspects of Brand

► In the past, marketing was often said to be In the past, marketing was often said to be unaccountable. Not any more. Today, marketers unaccountable. Not any more. Today, marketers are required to show how their expenditure is are required to show how their expenditure is delivering a return, by contributing to brand and delivering a return, by contributing to brand and business success. And there are clear benefits in business success. And there are clear benefits in putting a value on the brand plan. First, it allows for putting a value on the brand plan. First, it allows for return on investment calculations to be based on a return on investment calculations to be based on a truly long term perspective, not just on outcome truly long term perspective, not just on outcome within one fiscal year. And second, it enables within one fiscal year. And second, it enables testing of investment hypotheses — for example, to testing of investment hypotheses — for example, to find out what happens if expenditure is reduced — find out what happens if expenditure is reduced — within a framework both marketing and finance can within a framework both marketing and finance can understand.understand.

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Branding in Different SectorsBranding in Different Sectors

► Industrial SectorIndustrial Sector Company Name BrandingCompany Name Branding

►Often, especially in the industrial sector, it is just Often, especially in the industrial sector, it is just the company's name which is promoted (leading the company's name which is promoted (leading to one of the most powerful statements of to one of the most powerful statements of "branding"; the saying, before the company's "branding"; the saying, before the company's downgrading, "No one ever got fired for buying downgrading, "No one ever got fired for buying IBM").IBM").

►In this case a very strong brand name (or In this case a very strong brand name (or company name) is made the vehicle for a range company name) is made the vehicle for a range of products (for example,Reliance and hilty) of products (for example,Reliance and hilty)

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Financial SectorFinancial Sector► Branding in financial services has its own Branding in financial services has its own

characteristics, the crucial element being characteristics, the crucial element being consumer trust, after all the institutions are consumer trust, after all the institutions are handling your money. For this reason in handling your money. For this reason in most cases the brand and the institution’s most cases the brand and the institution’s name are one and the same.name are one and the same. Core brand valuesCore brand values

► Recognition/awarenessRecognition/awareness► Trust/reliabilityTrust/reliability► Value/priceValue/price► ServiceService► Availability/distributionAvailability/distribution► Product rangeProduct range► InnovationInnovation► Professional expertiseProfessional expertise

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Service SectorService Sector► The 4-M approach centers on the 4 basic elements that a The 4-M approach centers on the 4 basic elements that a

service provider must manage for branding services effectively. service provider must manage for branding services effectively. In a nutshell the 4-M approach involves In a nutshell the 4-M approach involves

Managing Egos-Managing Egos- People always react negatively when they People always react negatively when they perceive a threat. Also, research has shown that more than the perceive a threat. Also, research has shown that more than the physical threat; it is threat to one's sense of self-one's ego that physical threat; it is threat to one's sense of self-one's ego that elicits the most negative response. Thus managing egos is elicits the most negative response. Thus managing egos is important in maintaining healthy and positive relationships with the important in maintaining healthy and positive relationships with the company's customers-both internal as well as the external. Only if company's customers-both internal as well as the external. Only if the internal customers (employees) feel safe and do not perceive the internal customers (employees) feel safe and do not perceive any threat to their egos, will they provide superior service to the any threat to their egos, will they provide superior service to the external customers. external customers.

Managing Perceptions-Managing Perceptions- Brands are not static but are Brands are not static but are continuously evolving and changing with changing customer continuously evolving and changing with changing customer perceptions. Thus, a brand is not simply the promise of said quality perceptions. Thus, a brand is not simply the promise of said quality but is in fact a manifestation of consumer perceptions of that but is in fact a manifestation of consumer perceptions of that promise- whether they see it as useful or not, truthful or not, promise- whether they see it as useful or not, truthful or not, consistent or not etc. Thus, managing perceptions of both internal consistent or not etc. Thus, managing perceptions of both internal and external customers is crucial in branding services. and external customers is crucial in branding services.

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Contd….Contd…. Managing Attitudes-Managing Attitudes- What people think about you matters! In any What people think about you matters! In any

service, people are the walking billboards of the company. As service, people are the walking billboards of the company. As primary service providers they interact with customers directly to primary service providers they interact with customers directly to deliver the service. What they think about the company is invariably deliver the service. What they think about the company is invariably reflected in the service they deliver. Thus, managing their opinions reflected in the service they deliver. Thus, managing their opinions is critical in branding services. Also, each satisfied customer can is critical in branding services. Also, each satisfied customer can direct another ten prospects towards your service. This word-of direct another ten prospects towards your service. This word-of mouth publicity which is unique to the service industry can only be mouth publicity which is unique to the service industry can only be leveraged if your customers think highly of you as a service leveraged if your customers think highly of you as a service provider.provider.

Managing Awareness-Managing Awareness- Goods have the advantage of ocular Goods have the advantage of ocular presence and physical existence. This tangibility helps consumers to presence and physical existence. This tangibility helps consumers to first experience the product through the various senses, build a first experience the product through the various senses, build a perception about the same and then decide to buy or not. However, perception about the same and then decide to buy or not. However, in the case of services, the intangibility of the service causes the in the case of services, the intangibility of the service causes the customer to buy the product and then decide whether it appealed to customer to buy the product and then decide whether it appealed to their senses or not. Branding services therefore becomes extremely their senses or not. Branding services therefore becomes extremely tricky since there are very few ways of creating brand awareness tricky since there are very few ways of creating brand awareness and conveying the brand promise to the customers. Nevertheless, and conveying the brand promise to the customers. Nevertheless, managing service awareness, though challenging can be achieved managing service awareness, though challenging can be achieved using physical evidence and media. Physical evidence refers to the using physical evidence and media. Physical evidence refers to the material touch and feel factors that accompany the service and material touch and feel factors that accompany the service and these are important in conveying the brand promise to the these are important in conveying the brand promise to the customers. Media on the other hand, is extremely useful in branding customers. Media on the other hand, is extremely useful in branding services by creating brand awarenessservices by creating brand awareness..

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Consumer SectorConsumer Sector► Sound: Here i would like to quote an example by Sound: Here i would like to quote an example by

Martin Lindstorm of Coke. According to him, whenever Martin Lindstorm of Coke. According to him, whenever a user open the website of Coca Cola - a sound of Fizz a user open the website of Coca Cola - a sound of Fizz while opening Coke should be there. With that as while opening Coke should be there. With that as these days people go to hypermarkets and buy in these days people go to hypermarkets and buy in bulk, so they spend lot of time there. SO the bulk, so they spend lot of time there. SO the experience out there is important. And the right music experience out there is important. And the right music there can really help. Also these big FMCG giants there can really help. Also these big FMCG giants occupy one section for their respective projects. So occupy one section for their respective projects. So they can utilize the space. they can utilize the space.

► Sight: There are different dimensions here. First is the Sight: There are different dimensions here. First is the packaging which is normally said the 5th P of packaging which is normally said the 5th P of marketing. You know after HLL getting a tough marketing. You know after HLL getting a tough competion from Regional players in India, because of competion from Regional players in India, because of packaging, started focusing a lot in this area. Looks packaging, started focusing a lot in this area. Looks definately matter. Other thing is retail displays/ definately matter. Other thing is retail displays/ merchandising. If the products are placed at the eye merchandising. If the products are placed at the eye level, there is a high chance of consumers to but level, there is a high chance of consumers to but them in basket. them in basket.

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Contd…..Contd…..► Smell: As mentioned in point 1, with music, aroma of Smell: As mentioned in point 1, with music, aroma of

different products according to the company or the different products according to the company or the product categories can also be introduced. Then in product categories can also be introduced. Then in case of Agarbattis, soaps, toothpaste as Puru case of Agarbattis, soaps, toothpaste as Puru mentioned, smell plays a major role. Also count deos mentioned, smell plays a major role. Also count deos and perfumes here. and perfumes here.

► Taste: It is more of a product attribute and is Taste: It is more of a product attribute and is considered to be a tangible. Obviously Nestle Maggi considered to be a tangible. Obviously Nestle Maggi Noodles should taste which will force buyers to refill Noodles should taste which will force buyers to refill their empty stock next time they visit retail. their empty stock next time they visit retail.

► Touch: There are some products like classbooks like Touch: There are some products like classbooks like ITC's Classmate for which the quality of the paper is ITC's Classmate for which the quality of the paper is very important. This also involve an angle of touch. very important. This also involve an angle of touch.