Unit-I. BRAND MANAGEMENT Dr.R.Mary Metilda, Professor, SREC.

Unit-I

BRAND MANAGEMENT

Dr.R.Mary Metilda, Professor, SREC

BRANDSBRANDS

Dr.R.Mary Metilda, Professor, SREC

“DETTOL” The Power Brand

Dr.R.Mary Metilda, Professor, SREC

Dr.R.Mary Metilda, Professor, SREC

A Brief Note on Dettol…

• Launched in 1933 By Reckitt & Benckiser• Be 100% Sure• 85% Market Share• Competitor Savlon-13% MS

UNIT-I

Dr.R.Mary Metilda, Professor, SREC

The Brand

“The sum of all characteristics, tangible and intangible, that make the offer unique.”

Brand Name Coca-Cola

Brand Logo Bottle Design and Red Cap

Trademark ™ Legally Protected Marks

Brands and organizations spend considerable sums telling customers what they stand for.

Advertising guru David Ogilvy, 1955

What is a brand?

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

combination of them, intended to identify the goods and services of one seller or group of sellers and to differentiate them from those of competitors.”

- The American Marketing Association (AMA),

Brands vs. Products

• A product is anything we can offer to a market for attention, acquisition, use, or consumption that might satisfy a need or want.

• A product may be a physical good, a service, a retail outlet, a person, an organization, a place, or even an idea.

Five Levels of Meaning for a Product

• Core benefit level: fundamental need or want• Generic product level: attributes or characteristics• Expected product level: set of attributes or

characteristics that buyers normally expect• Augmented product level : additional product

attributes, benefits, or related services that distinguish the product from competitors.

• Potential product level: augmentations and transformations

“Brand is therefore more than a product, as it can have dimensions that differentiate it in some way from other products designed to satisfy the same need.

Importance of Brands to Consumers

• Identification of the source of the product• Assignment of responsibility to product

maker• Risk reducer• Search cost reducer• Promise, bond, or pact with product maker• Symbolic device• Signal of quality

Importance of Brands to Firms

• To firms, brands represent enormously valuable pieces of legal property, capable of influencing consumer behavior, being bought and sold, and providing the security of sustained future revenues.

Importance of Brands to Firms

• Identification to simplify handling or tracing• Legally protecting unique features• Signal of quality level• Endowing products with unique associations• Source of competitive advantage• Source of financial returns

What is branded?

• Physical goods• Services• Retailers and distributors• Online products and services• People and organizations• Sports, arts, and entertainment• Geographic locations• Ideas and causes

Branding Challenges and Opportunities

• Savvy customers• Brand proliferation• Media fragmentation• Increased competition• Increased costs• Greater accountability

Benefits of Branding

For customers a brand offers:

1. A desired level of quality. Consistently

2. Psychological rewards from ownership

3. A means of distinguishing one brand from another

The brand image helps create loyalty.

Benefits of Branding

For the company branding offers:

1. A means of communicating features and benefits

2. An opportunity to create and sustain an image

3. Customer satisfaction and repeat purchase opportunity

Types of Brands

• National Brands –owned and initiated by manufacturers. Ex: General Electric, Heinz, and Motorola.

• When consumers buy food products, they buy manufacturer brands nearly 75 percent of the time.

• Private Distributor Brands – also called Private Brands, Store Brands, or Dealer Brands – owned and initiated by wholesalers and retailers.Ex. Best Price & value price of Auchan, Spencers choice of Spencers

• Generic Brands – represent a general product category and do not carry a company or brand name. The packaging only describes the product – “pancake ” or “paper towels”

– Often priced below branded products

Corporate brands

• Corporate brands are company personnel and company culture(s).

• corporate brands often boundary-span organizations.

• Ex. Reliance, TATA

Dr.R.Mary Metilda, Professor, SREC

Different types of Corporate Brands• Source Brand (Monolithic):

Use of a single (corporate) brand name. This is used to identify the orgn. in addition to its products/services

Ex: TATA,Sony• Endorsed Brand:

Use of a distinct brand name by a subsidiary (corporate brand) is accompanied by explicit reference to the the holding corporation’s brand (the same may occur for a product and/or service.) wide diversity of products under product, line brands or range brands

Ex: General Motors.

• Branded:

Use of a distinct brand name by a subsidiary, product or service which makes no reference to the holding corporation’s brand.

Ex: Jaguar, a subsidiary of the Ford Group.

Dr.R.Mary Metilda, Professor, SREC

• Product brand - exclusive name to single product (Bournvita)

• Line brand - same concept across different products (Dettol, Ponds)

• Range brands - one name on group of products having same ability (Nokia)

• Umbrella brand - supports products in different markets (Canon cameras, copiers, Sony )

Dr.R.Mary Metilda, Professor, SREC

• Cause Branding – Attempting to attract customers by associating the company with a cause or purpose that potential customers would find beneficial to their personal goals

• Ex:advertisements\Tata Tea Jaago Re on Corruption.mp4

• Spirit Branding – Hit the consumer market big time by selling the products with the slogan bringout spirits.

• EX:C:\Users\METILDA\Downloads\Video\Kingfisher ad with IPL players.MP4

Dr.R.Mary Metilda, Professor, SREC

Muscular Brand

• Ex:Mahendra Scorpio• advertisements\Mahindra Scorpio.mp4• advertisements\New Mahindra Scorpio ad.mp

4

Dr.R.Mary Metilda, Professor, SREC

• Attribute Branding: Ex: Aswini Hair oil• Luxury Branding: Ex. LUX• Sexual appeal branding: Ex:AXE• Emotional branding:

C:\Users\METILDA\Downloads\Video\New Television Commerical (TVC) for MetLife Insurance India (2010).MP4

• Humor Branding:advertisements\Funny Memorable _ Moochwali Fevicol Ad [www.keepvid.com].mp4

• Cult branding

Dr.R.Mary Metilda, Professor, SREC

Co-Branding

Occurs when two or more existing brands are combined into a joint product or are marketed together in some fashion

Ex: Sony Ericsson Nokia Siemens Starbucks Coffee opens outlets in Barnes & Nobel

Bookstores

Advantages of Co-Branding

Borrow needed expertise Leverage equity you don’t have Reduce cost of product introduction Expand brand meaning into related

categories Broaden meaning Increase access points

Source of additional revenue

Disadvantages of Co-Branding

Loss of control Risk of brand equity dilution Negative feedback effects Lack of brand focus and clarity Organizational distractions

Ingredient Branding A special case of co-branding that involves

creating brand equity for materials, components, or parts that are necessarily contained within other branded products

Examples: Intel inside HLL introduced Clinic All Clear ZPTO (Zink Pyrithione, a

chemical compound used as anti-fungal and antibacterial agent)followed by P&G in Head and Shoulders

Private Label Branding

Private labels are referred to as in-house brands or store brands, are those that are owned by the retailers themselves.

Dr.R.Mary Metilda, Professor, SREC

Why PL has an extensivegrowth?

• Consolidation of retailers• Projected as a commodity• Retailers needs differentiation • Better margin• Declining Retail Prices• Global Sourcing

Dr.R.Mary Metilda, Professor, SREC

Types of PL Brands

• Generic• Fast Fashion• Premium Store brand

– Highly Competitive– Bigger threat to national brand– Brand loyalty

Dr.R.Mary Metilda, Professor, SREC

Pros and Cons of PLBranding

• Pros– Exclusivity

&Differentiation– Better margin– Better control in

deliveries– Brand equity– Freedom in pricing

• Cons– Inventory risk– High R&D for

innovation– Negative Image if it

fails– Maintaining Quality

Dr.R.Mary Metilda, Professor, SREC

BRAND IDENTITY

“A unique set of brand associations that a brand strategist aspires to create or

maintain”

Contributors of Brand Identity

Brand Identity

Brand Performance

Category Understanding

SegmentationPositioning

Marketing mix

Elements of Ideal Brand Identity

Coherence

sustainability

Value

Commitment

FlexibilityAuthenticity

Meaning

vision

Differentiation

• All