STRATEGIC BRAND MANAGEMENT

Prof. Abhilash Ponnam

Introduction and CBBE formation

With case: BARBIE

Meaning of BRAND

Brand is a name, term, sign, logo or symbol or a combination of them intended to identify the offerings of the seller and differentiate them from other offerings AMA

Product and Brand

Def: Need, want satisfying offering

Meaning of product:

Core benefit level: fundamental need Generic product level: no frills version Expected product level: expected version Augmented product level: + additional features Potential product level: Possible transformations

Two products which intend to satisfy same need / want might have same product meaning but may have different brand dimensions. Can you site an example from CASE?

How brands contribute to value creation?

By creating perceived differences among products through branding and by developing a loyal consumer franchise, marketers create value that can translate to financial profits Brands signal benefits to consumers. Benefits are of two kinds: functional and symbolic. Symbolic benefits allow consumers to portray their self image How Barbie brand adds value to toys?

Kinds of products

Search: Physical perception Experience: Usage based perception Credence: Belief only

Examples?

Brands signal quality in case of credence based goods

How was Barbie initially supposed to be positioned? What aspects of branding helped Barbie made parents believe that Barbie doll can serve the purpose?

Brands reduce risk

Functional risk Physical risk: heath hazard Financial risk: not worth the price Social risk: embarrassment Psychological risk: affects mental well being Time risk: failure of product results in opportunity cost of finding other satisfactory product Which risk was targeted by feminists in early 1960s as the one which Barbie was promoting?

________precedes management

Customer Based Brand Equity

Value attributed to brand by the consumer is CBBE

Differential effect of brand knowledge on consumer response to marketing of a brand

What differentiates Barbie from any other toy doll? <bk>

How do you tap the consumer response to barbie as a brand? / How was the name barbie leveraged? (pparbe) Do you think that it is right strategy to undertake price cuts to improve barbie sales? (de)

Foundation for CBBE

Explanation of Associative Network Theory

First Reading assignment: Kellers Paper on Brand Equity formation and measurement
Brand knowledge consists of two components namely awareness and image

Brand awareness: Recognition and Recall

Brand Image: Consumer perception of brand as reflected by brand associations held in human memory.
Brand associations are informations pertaining to the brand. From the case, elucidate how kids perceive barbie, how parents perceive barbie and how activisits perceive barbie?

Sources of CBBE

CBBE occurs when consumer has high brand awareness coupled with strong, unique favorable associations in memory.

Awareness: Recognition: prior exposure Recall: Ability to recall when product category is cued.

Advantages of brand awareness

Learning advantages: Reinforcing with additional associations becomes very easy if brand awareness exists. Ex: Manappuram Gold Loans Consideration advantages: Increases the likelihood that brand is considered for choice (is a part of consideration set) Ex: Shopping lists, memory based purchases

Choice advantages: Mere brand awareness might some times result in choice in following cases: Low involvement product categories No product knowledge Un-ablility to comprehend perceived differences across brands: Low purchase motivation

How to increase B. Awareness

Increase familiarity using repeated exposure Forging associations with product category Forging associations with relevant purchase, consumption cues.

What strategies did Barbie adopt to increase its awareness?

Strength of Associations

How deeply consumer thinks about product information and relates it to existing brand knowledge

Factors strengthening brand associations: 1. Personal relevance 2. Consistency with which associations are presented over time

Favorability of Brand Associations

Desirability: Relevance Distinctive Credible

Deliverability: Ability of the product to perform Prospects of communicating the perf. Sustainability of cmuncted perf. over time

Uniqueness of Brand Associations

Brands share associations with immediete product category and broadly related product category

Why is CBBE of barbie eroding? What do you attribute it to?

4 steps of Brand building: BRAND PYRAMID

Brand Salience
How easily is the brand evoked under various situations Breadth: In which all situations? Depth: How often? How likely? Product Category Structure: Brand Product type non oh Product category flav Product class beverage

Brand Performance
How well the brand meets functional needs

What determines performance? Primary ingredients and suppl. Features Reliability, durability, servicability Service effectiveness, efficiency, empathy Style and design Price

Brand Imagery
Ability of the brand to meet consumers psychological and social needs. Depends upon the extrinsic properties of the product Factors determining brand imagery: User profiles Purchase and usage situations Personality and values History, heritage and experiences

Brand judgments
Personal opinions or evaluations of the brand

What do consumers judge brand upon?

Quality Credibility Consideration Superiority

Brand Feelings
Emotional responses / reactions

Kinds of feelings: Warmth Fun Excitement Security Social approval Self respect

Resonance
Psychological bonding with the brand

How? Loyalty Commitment Attachment Active engagement

Brand Identity Prism

Brand Physique

Physique encompasses all the palpable attributes of brand. It is often termed as outward face of brand.

How to identify Physique:

Look and feel of the product(s)/service(s) of the brand; Specific characteristics that remain common in the entire product portfolio; Specific traits/characteristics of the product without which brand is reduced to mere name.

Brand Physique of Kingfisher can be connoted with Zest, Youth and Luxury

Brand Personality

Brand personality can be measured in terms of human personality traits which brand exhibits Consumers prefer to choose brands with personalities that match their own ideal personality

How to identify brand personality?

Personality of brand ambassador or any other person who ideally represents corporate face of the brand. (e.g., most often in IT Companies, CEO serves as face of brand in lieu of brand ambassador)

Events with which brand is associated.

Personality of Kingfisher: flamboyant, frivolous, yet professional.

Brand Culture

Culture is the basic principle governing the brand in its outward side

How to identify culture:

Significance of name, slogan or logo type and how are they attributable to deep roots of branding; Company Public Relations approach (PR); and Corporate Social Responsibility. Culture of Kingfisher: Passion for Success, Glocal Values and Promise of Growth.

Brand Relationship

brand relationship defines the mode of conduct that most identifies the brand.

How to identify brand relationship:

Conduct of personnel at service points; Steps taken towards maximizing customer satisfaction; and Customer Relationship Management (CRM) approach.

Relationship of Kingfisher: exclusive, loyal and mesmerizing.

Brand Reflection

Reflection can be defined as perceived target with which the customer wants to be identified with

How to identify brand reflection:

Target segment appearing in the brand communication; and Placement of product with respect to others in the retail outlet/market space.

Brand reflection of Kingfisher: young minded, luxury seeker and successful person.

Self Image
Self image is the targets own internal mirror when s/he interacts with the brand. How to identify self image:

Profile of target segment where most of the product/service range of the brand fall into Brand Nomenclature

Self Image of Kingfisher: chic, regal and a page 3 persona

Brand Positioning
Haagen Dazs Case

Definition of Positioning

Act of designing companys offerings and image so that it occupies a distinct and valued place in the target consumers mind.

In modeling positioning, marketer needs to determine: Who the target consumer is? __(1) Who are the main competitors? __(2) How is the brand similar to competitors?__(3) How is the brand different from competitors? __(4)

(1) Consumer Segmentation

Market is set of buyers and potential buyers who have: 1. interest 2. income 3. access to a product Segmentation divides market into groups of homogeneous consumers who require similar marketing mixes. Broad Classification of market segments: Descriptive: Geographic, Psychographic Demographic etc Behavioral: Usage rate, usage occasion, benefits sought etc

Criteria for a good segmentation

Identifiability (can it be easily identified) Size (potential) Accessibility (availability of media channels, distribution outlets to reach that segment) Responsiveness (possible reaction to tailored marketing mix)

Segmentation of HD?

(2) Nature of competition

Competition can occur at benefit level than attribute level

Ex: Coca cola competes with soft drinks at category level and all beverages at product class level and all refreshments at benefit level.
Nature of competition for HD?

Frame of reference: Defining target segment and nature of competition in formulating positioning

(4) Points of Difference

Similar to notion of USP and SCA

Ex: Aroma sealing package of Taj Mahal Tea processed with finest hand picked tea leaves Ex: Big Bazaar: Is Se Sasta aur Accha Kahin Nahi

Points of difference can be intangible too!

Ex: Leelas Hotels: The essence of India Ex: Amul: The taste of India

Points of difference in HD: before rp? After rp?

(3) Points of Parity Associations

Associations the brand shares with other brands Category points of parity Competitive points of parity Category points of parity: New products Kellogs breakfast cereals Zima Competitive points of parity: Negate the competitive points of difference: Knorr: Good food matters Maggi: Taste bhi health bhi

Positioning Guidelines

Defining and communicating competitive frame of reference ___(1) Choosing and establishing points of parity and points of difference ___(2)

Defining and communicating the competitive frame of reference: Define category membership if the product is new to world or new to market

How to communicate category membership

Communicate category benefits Comparing to exemplars Relying on product descriptor

(2) Choosing points of difference

Desirability: Relevance / Distinctiveness / Believability Deliverability: Feasibility / Communicability / Sustainability Ex: Ivory Bath Soap

Establishing POP and POD

Problem of negative correlation: Low price but High quality, Luxury yet Performance. Separate the attributes: Head and Shoulders Leverage equity of other entity: Coca Cola Splenda Redefine the relationship: Positive Homeopathy

Product Categories

Wine Hotel Hospital Real Estate (Stick to one product: Luxury Villas, Apartments) Malt Additives (like Horlicks, Boost etc)

What are core brand associations? (abst. Ben) How do we elicit core brand associations ? (MM)

Brand Mantra:

A short 3 to 5 phrase which captures the essence of the brand

Brand mantra should economically describe what brand is and what it is not

Components of Brand Mantra

1.

Brand function: Nature of the offerings Descriptive modifier: Describes the nature of offerings

2.

3.

Emotional modifier: Describes the emotive aspect of such offerings which brand provides

Nike: Authentic Athletic Performance Disney: Fun Family Entertainment

Barbie? HD? King fisher? Maggie?

Significance of Brand Mantras

Power from collective meaning Succinctly captures brands points of difference

Characteristics of good brand mantra

Communicate Simplify (memorizable) Inspire

Internal Branding

Internal Branding assists the organisation in aligning its internal process and corporate culture with those of the brand. The objective of internal branding is to ensure that employees transform espoused brand messages into brand reality for customers and other stakeholders.

Importance of Internal Branding

Whether the positioning of their corporate brand is successful remains dependent on the employees behaviours in producing and delivering the service. Customer-facing employees exert a certain degree of inuence on customers and other stakeholders perceptions about the brand and / or the organization, which determines the success of brand positioning. Employees who are responsible for ful-lling the brand promise are required to deliver the service in a consistent manner to attain and maintain the desired identity, a coherent corporate image, and a corporate reputation.

Employees who are responsible for ful-lling the brand promise are required to deliver the service in a consistent manner to attain and maintain the desired identity, a coherent corporate image, and a corporate reputation.

Choosing Brand Elements to Build Brand Equity

Tourism Malaysia Case

Assignment for Saturday

GROUP PRESENTATION 1 / REPORT 1

Introduce your company Introduce your product(s) and assess COMPETITION Introduce your targeted segment POSITION your brand and speak about the significance of your brand positioning Design BRAND ELEMENTS Speak about the interpretation and significance of each brand element PRINCIPLE: not more than 5 slides, not more than 5 minutes Report due next Saturday

What are brand elements?

Brand names Symbols Logos Punchlines Packaging Brand ambassadors / Spokesman Characters

Criteria for choosing Brand elements

Memorability

Should facilitate easy recognition and recall

Meaningfulness: Informs the nature of product category (descriptive)

Specific information about attributes or benefits of the brand (Persuasion)

Likeability Fun and interesting

Aesthetically pleasing

Rich imagery

Transferability Can the logo be applicable for new products? Can it work across geographic boundaries and cultures?

Adaptability Flexible / Updatable

Protectability Legally, competitively

Options and tactics for building brand elements

Have multiple brand elements: To translate the meaning to multiple cultures BRAND NAME A good brand name captures the central theme or key associations of a product in compact fashion

Characteristics of a good brand name:

Easy to spell and pronounce /WYBOROWA vodka

Familiar and meaningful /

Uniqueness/ Differentiated:

Brand Naming Procedures

Define objectives (6 considerations) Generate names Screen names

Eliminate names that have Double meaning, Unpronounceable Might lead to legal complications Contradicts positioning

Trial study finalized names: Do research, seek consumer opinion Exhaustively research Select

Some local examples:

Lips and Licks bakery Alibaba 40 kababs steak house

Logos and Symbols

Word marked: LOGOS Non word marked: SYMBOLS

Rationale? Versatile Transfer meaning across cultures Adaptable over time

Characters
Lively symbols

Rationale? Draw attention Enhance likeability Foster relationship Adaptable across product categories

Slogans
Short phrases that communicate descriptive information about the brand

Just do it Worlds local bank A diamond is forever

Rationale? Builds both awareness and image Signifies performance

Jingles
Musical messages written around the brand

Intel inside Hutch U and I

Packaging

Designing Marketing Programs to build CBBE

Body Shop Case

Drivers of new economy

Digitalization and connectivity Disintermediation and Reintermediation Customization and Customerization Industry convergence

MACRO Level Policy Changes Privatization De regularization Globalization Result?

New Capabilities
To Consumers Greater variety More information More interaction with marketers Easier accessibility of goods and services

To Companies Greater geographic reach More information on consumers and competitors Better 2 way communication Personalization of offerings

Integrating Marketing Programs and Activities to build brand equity

Reference: Dunn Micheal and Davis Scott (2003), Building Brands from the Inside, Marketing Management, June, pp.32 -37

Brand Touch Point: Brand touch points are all of the different ways that an organization's brand interacts with and makes an impression on customers, employees, and other stakeholders. A touch point is represented by every action, tactic, or strategy taken to reach a customer or stakeholder.

Classification of Touch Points:

Pre-purchase experience touch points represent the various ways potential customers interact with your brand prior to deciding to do business with your company. Objectives:

Each pre-purchase touch point interaction should be designed to shape perceptions and expectations of the brand, heighten brand awareness, and drive its relevance. They should also help prospects understand the brand's benefits over competing brands and the value it brings in fulfilling their personal wants and needs.

Classification of Touch Points:

Purchase or usage experience touch points are those that move a customer from considering your brand to actually "purchasing" it.

Objectives: The main objective of these paints of interaction is to maximize the value prospects see in your offerings and instill confidence that they have made the right decision in choosing your brand.

Classification of Touch Points:

Post-purchase experience touch points come into play after the "sale" and should maximize the customer experience. Objectives:

The goals of post-purchase experience touch points are to deliver on the brand promise, meet or exceed customer performance and usage expectations, and increase brand loyalty and advocacy.

Brand Strategy:
Identify those touch points that drive the desired brand experience and allocate your resources against them. Steps to determine which touch points are to be leveraged:

Step 1: Classify Step 2: Identify those touch points that drive the desired brand experience and allocate your resources against them. Step 3: Prioritize the identified touch points and determine which will have an immediate effect on brand perception and experience. Step 4: Implement and manage your high-impact touch points on an ongoing basis.

Touch Point planning

Reference: Jenkinson Angus (2007), Evolutionary Implications for Touch point Planning as a Result of Neuroscience: A Practical Fusion of Database Marketing And Advertising, Database Marketing & Customer Strategy Management Vol. 14 (3), 164185

Create experiences that evoke specific experience of brand Each touch point should be designed to influence customer thinking by stimulating belief in a strong idea related to the brands core value preposition

Stimulate or reawaken positive emotions that establish a specific positive relationship between the customer and the firm

Provide help and confirmation, caring for likely needs, problems and questions of individual customer or segments Stimulate specific desired actions which do not appear manipulative Ensure consistency among all touch points so that a unique brand experience is (re)created.

Image Formation Process

Gartner, William C,
Journal of Travel and Tourism Marketing, 1994, 2(2),191 216

Image Components

Cognitive, Affective, Conative Distinctly different but hierarchically inter-related Based more on perception than reality

Cognitive Component:

Images derived from fact Evaluation of known attributes of the product or the understanding of product in an intellectual way Sum of beliefs and attitudes of an object leading to some internally accepted picture of its attributes Amount of external stimuli received about an object is instrumental in forming cognitive image

Affective Component:

Motives determine what we wish to obtain from object being considered Affective component is related to motives that one has for destination selection. Affective component becomes operational from choice set onwards

Conative component:

It is analogous to behavior because it is action component. Conative components relationship with other components is direct. It depends upon the images developed during the cognitive stage and evaluated during affective stage.

Cognitive Image Formation:

Agent is a force producing a specific effect. Image formation process can be viewed as continuum of separate agents that act independently or in some combination to form destination image unique to the individual. Agents only influence cognitive image component.

Overt Induced 1: (TV, Radio) Traditional forms of advertising like TV, Radio, Bill boards, brochures etc Person receiving the message is not confused over who is sending it Generally characterized by low credibility and high market penetration

Overt Induced II: (Middle Men) Information received or requested from organizations (middlemen, wholesalers, retailers) who are not directly associated with the source but have vested interest in consumer decision making process There exists a degree of control of destination promoters over images projected through tour operators. Generally characterized by high credibility and low market penetration

Covert Induced I: (Ambassadors) Second party endorsement of products via traditional forms of advertising Recognizable spokesman may be employed to deliver brand messages to counter credibility problem, decrease psychological and social risk and increase recall. Spokesman could be a celebrity or a satisfied customer.

Covert Induced II: (Ranking Agencies) Second party endorsement through apparently unbiased reports Though consumer believes the message is from agent that has no vested interest, the agent is in some ways influenced by / manipulated by the source in a development of projected image. Example: Articles in newspapers, magazines about destination from credible authors whose visitation, publications expenses funded by destination promoters There is no direct control over message by the source.

Autonomous: (News Reports) Independently produced reports, documentaries and news articles Sub categories are news and popular culture ( movies, non-news tv programming) Has significant impact on image development Promoters have no control over news content High credibility and market penetration

Unsolicited Organic: (Your Friends views) Unrequested information received from individuals who are believed to have no vested interest in the source. Retention is generally low if the person has not requested it and credibility depends upon the agent delivering the information. If the person has no previous personal exposure, this form of information may have an impact

Solicited Organic: (Expert Opinion) Requested information received from individuals who are believed to have no vested interest in the source. Ex: WoM Characterized by high credibility Organic: Direct personal experience

Personalized Marketing
Marketing to individual consumer than to broad segments of consumers Kinds Experiential Marketing One to one Marketing Permission Marketing Relationship Marketing Participatory Marketing

Experiential Marketing

Communicate not just benefits but also connect offering with unique experiences Charge of Stuff: Commodity Business Charge of Goods: Goods Business Charge of Activities: Service Business Charge of Customer time spent with you: Experience Business

Example: McDonalds, Disney World, Tourism, CCD, Barista etc

Rules for Experiential Marketing

Plan for sensory experiences Think of consumption situations Create holistic experiences which appeal both mind and intellect Leverage experiences into new platforms and to new brand extensions Be passionate about the brand

Examples: Singapore Airlines, Crayola Cryons

One to One Marketing

Principle: Treat each consumer uniquely by letting consumer directly speak to the company and customizing products that suits their needs Ex: Ritz Carlton Hotel, Tesco Club Cards, Dell?

Permission Marketing
Principle : Attract consumer attention by giving some kind of inducement and then gradually converting them into consumers.

Strategies

Offer incentive Teach the consumer about the product over time Reinforce the permission in every contact Incentivize to get more permission Leverage permission to sales

Example: Amazon.com, Alibris.com

Relationship Marketing
Rationale?

It costs 5 times to acquire new customer as much as satisfying and retaining existing customers
Relationship Marketing: Mass Customization Aftermath Marketing Loyalty Programs

Product Strategy
How consumers assess Perceived Quality?

Performance FEATURES Conformance Quality Reliability Durability Serviceability Style and Design

Brand Intangibles

Product Delivery and Installation Promptness and Curtsey of Customer Service Quality of Repair Service Brand Imagery

Mc Kinseys 3D Marketing

Functional Benefits Process Benefits Relationship Benefits

Pricing Strategy
Understanding Consumer Perception of Price Internal Reference of Price Fair Price Last Paid Price Upper Bound Price Lower Bound Price Competitive Price Expected Future Price Discounted Price

External Reference of Price ??

Factors influencing Value Based Pricing

Product Design and Delivery Case of Louis Vuitton Moet Henesssey: High Markups Limited Availability Company owned / operated merchandize stores Strict QC Advertising in Upscale Life style Mags In control of production => In control of quality In control of distribution => In control of _____

Product Prices

Willingness to pay for a given product category Undertake Price Segmentation Example: Low Price Editions / Paper Back Editions (PHI)

HW: Read on EDLP

Production Costs
KANO Model

Channel Strategy
Design and management of intermediaries such as wholesalers, distributors, brokers, and retailers Channel Design: Direct Channels: Company Customer Indirect Channels: Company Intermediary Customer Integrated Shopping Experiences: Combine physical stores, Internet, telephone and catalogs

Which channel to choose?

Direct Channel.. When?

Product Information needs are high Product Customization is high QA is important Purchase lot size is important Logistics are important

Indirect Channel.. When?

Broad Assortment necessary Availability is critical After sales service is important

Risks of Hybrid Channels

Channel conflicts Sabotage of one channel in favor of other channel

Strategies for Indirect Channels

Push Strategy: Incentivize ________? Pull Strategy: Incentivize ________? Retail Segmentation Cooperative Advertising

Direct Channels
Company owned retail outlets Pros: Customer awareness, education Builds brand image Cons: Potential channel conflict

Web Strategies
Surf online but purchase in store

Read on Private Labels: HW

Questions from the case:

1.

2.
3. 4. 5.

Identify all the marketing concepts which were endorsed by BS What pricing strategy (policy) is adopted by BS? What distributional strategy is adopted by BS? Identify the direct and indirect distribution channels utilized by BS What is the reason behind adopting this kind of distributional strategy?

Societal Marketing Concept

The societal marketing concept can be defined as the organizations task which tries to identify the needs and interests of the consumers and delivers quality services or products as compared to its competitors and in a way that consumer's and society's well being is maintained.

Societal Marketing

Social marketing uses commercial marketing theories, tools and techniques to social issues

Questions on positioning
1. 2. 3. 4.

Why was the company repositioned? Posterior to acquisition by Loreal, did the positioning remain same? Why was Loreal interested in acquiring BS Were the apprehensions on deterioration of BI of BS sustainable arguments?

IMC TO BUILD BE
Apple Case

How MC builds CBBE?

Creates awareness Links POP & POD associations Elicits +ve judgments, feelings Results in Brand R_______?

New Media Environment

Emphasis of Internet Burgeoning of User Created Content TiVo (Set top Boxes) introduction

3 step model for judging ad effectiveness

Current brand knowledge Desired brand knowledge Does the ad help in reaching to desired BK

Persuasion Process
1.

2.
3. 4.

5.
6.

Exposure Attention Comprehension Yielding (favorable response) Intention Behavior

Strategy

Target the right consumer Use creative strategy for advertising Ensure ad properly reflects the consumers level of understanding Ad correctly positions the brand in terms of desirable and deliverable POP and POD Ad motives the consumer to consider the brand for purchase Ad creates strong associations so that they are elicited during actual purchase situations

When should MC budgets be higher?

Low channel support Change in marketing program over time Hard to reach segments Complex consumer decision making Non homogeneous consumer needs Frequent product purchases in small quantities

When should MC budgets be lower?

High unit value Technical in nature Requires demonstration Must be customized Purchased infrequently When consumers can be easily identified

Marketing Communication Options

TV Pros Allows for sight, sound and motion Wide reach Ability to demonstrate product attributes better Effectively portray user and usage imagery, brand personality and other brand intangibles Cons Fleeting elements are distractive Large number of ads maketh consumer ignore them Fragmentation of channels High cost of production and placement

Message strategy: what ad wants to convey Creative strategy: how it is conveyed

Radio
Good strategy for Radio Commercial Identify your brand early in commercial Identify it often Promise a listener benefit early Repeat it often

Print
Cons Static presentation

Pros Can build user and usage imagery

Strategy

Is message clear at first glance? Is the benefit in headline? Is the illustration supportive? Does the first line of ad communicate the head line? Is the ad easy to read ad follow? Is the product easily identified? Is the brand or sponsor easily identified?

Other Communication Forms

Direct Response Infomercials Database marketing Websites Interactive ads Mobile Marketing Bill Boards and Posters Movies (Product placement), Airlines, Lounges POP

IMC Criteria

Coverage: Reach Contribution: Stand alone effects of MC Communality/ Consistency: Common meaning shared with other communication options (encoding variability principle) Complementary: Extent of unique associations are emphasized Versatility: Extent to which MC is effective independently across different target segments Cost

Leveraging Secondary Brand Associations to build Brand Equity

Cricketanment CASE

Brands themselves may be linked to other entities which have their own knowledge structures. Other knowledge Structures: Companies Countries or other geographical areas Channels of distribution Other brands Characters Spokesman Events Third party sources

When are secondary brand associations important?

Consumer lacks motivation Consumer lacks knowledge / ability to judge product related concerns

When can secondary brand associations be leveraged?

Pop Star Kesha Rose Sebert to endorse a pan Indian NGO involved in rural women health care (a) Cummins: Industrial turbine manufacturer to sponsor FIFA (m) Pandit Ustad Allah Rakha as brand ambassador of MTV? (t)

Strategies to leverage SBAs

Commonality leveraging strategy: Congruence with desired brand associations Katrina and Lux John Abraham and Fair and Handsome Vishwanathan Anand and NIIT Complementarity leveraging strategy: Hardly few or any common associations

Cons of leveraging SBAs

Loss of control over the brand Managing the transfer process so that only relevant secondary knowledge becomes linked to brand may be difficult

What are the pros? Next: Kinds of SBAs

Family or corporate brand as source of brand equity

Pros: Immediate transfer of equity of parent brand thru thru transfer of attributes, benefits, attitudes, people, relationships, programs, values and corporate credibility of parent brand Cons:

-------?
Discuss WHY

Dabur Honey, Dabur Chawalprash, Dabur Real Fruit Juice Tropicana fruit juice, Gatorade energy drink, Quaker Oats

Country of Origin as SBA

Fill up the blank:

Designed in Korea Made in USA Engineered in Germany Bottled in Scotland Brewed in France ______ in India

Channels of Distribution
Omega Watches: Available in all leading watch outlets Available in Hyderabad Central only

Levis Sears and Pennys RH Macys case

Co branding as a SBA

micromax "MTVX360"

What is co-branding
Two or more brands are combined into a joint product or are marketed together in some fashion Pros Create more compelling POP and PODs Open additional sales from new consumers Accelerate adoption Reduce cost of product introduction Cons Lack of control Expensive

When co-branding? Poorly differentiated product Ingredient branding? Meaning and Example

SELF CHECK for Co-branding

What capabilities does the company not have Resource constraits Growth goals for next ___ years

SELF CHECK for Ingredient branding

Ingredient should offer superior performance Ingredient should have advantages over existing alternatives Logo of ingredient brand should be recognizable by the targeted audience Push and Pull programs to promote branded ingredient

Licensing

Contractual agreements whereby firms can use the logos, characters and brand elements of other brands to market their own brand

Fashion retailer Bershka licenses Simpsons

Firms with little CBBE rely on the image of their Licensor

Corporate Trade Mark Licensing

Old Toledo licensed JEEP brand name

Inappropriate licensing can dilute brand image

Celebrity endorsement
Amir Khan VS Amitab bachhan

Cons: Endorsers can endorse so many products that they lack any specific product meaning or seen as opportunistic No reasonable match between celebrity and product Celebrity image tarnishes brand image Consumers believe endorsement is for money and that they personally dont use the product Celebrity detracts the message to be conveyed by the brand

Checklist

Choose well known celebrity whose associations are relevant to the brand and hence transferable There must be a logical fit between the person and the brand Advertising and communication program should creatively use the celebrity that encourages relevant association transfer only

HW:

Read Sports cultural and other events Third party sources

Developing Brand Equity Measurement and Management System

Emergence of Marketing Concept

Production Concept (1920s)

Firm should focus on those products that it could produce most efficiently Creation of a supply of low-cost products would in and of itself create the demand for the products
Key Questions:

Can we produce the product? Can we produce enough of it?

Sales Concept (Western Industrialization: Post 1930s) Companies should not only would produce the products, but also would try to convince customers to buy them through advertising and personal selling. Key Questions:

Can we sell the product? Can we charge enough for it?

Marketing Concept (Post WW2)

What do customers want? Can we develop products which can satisfy the consumers How can we keep our customers satisfied in long run?

Strategy:

Focusing on customer needs before developing the product Aligning all functions of the company to focus on those needs Realizing a profit by successfully satisfying customer needs over the long-term

Measurement approaches to CBBE

Indirect approach: Assess the potential sources of CBBE by identifying and tracking consumer brand knowledge Direct approach: Measure the outcomes of brand equity

Brand Value Chain:

A structured approach to assess both the sources and outcomes of CBBE.

Stage 1:

Marketing Program Investment: Product research Product development Trade Marketing communications Employee training

Program quality multiplier:

Clarity Relevance Distinctiveness Consistency

Stage 2

Customer mindset:

Awareness Associations Attitudes Attachment Activity

Market place conditions multiplier

Competitive superiority Channel and other intermediary support Customer size and profile

Stage 3:

Market Performance

Price premium Price elasticity Market share Expansion success Cost structure Profitability

Investor sentiment multiplier

Market growth Risk profile Brand contribution to companys portfolio

Stage 4 Share holder value

P/E ratio Stock price

Brand Tracking
Long term strategic orientation: Brand Audit Short term tactical decisions: Brand Tracking Tracking studies focus on how value is created

What to track in product brands? Awareness Associations Imagery Benefits

Specifically:

Functional performance Convenience or ease of use Brand Personality Pricing and value component

Whom to track?

Users Non Users Channel Members Sales People

What to Track?

Competition Different segments

How to interpret tracking studies

Identify relevant brand associations Associations that determine behavior (+,-) PODs Impact of various communications in image formation

Establishing BE Management System

1. 2. 3.

Develop a brand equity charter Assemble brand equity reports Define brand equity responsibilities

Brand Equity Charter

Formalize the companys view of BE into a document

What should it contain? Firms view of BE concept Key brands and their scope Actual and desired levels for each brand Method of brand equity measurement How brand equity should be managed Guidelines in devising marketing programs Guidelines on treatment of brand

Brand Equity Report

Status of the brand Section 1 Internal and external measures of brand performance Sources and outcomes of brand equity as revealed by tracking study Section 2 Product shipments / CD Category trends Cost breakdowns Price and Discount Schedules Sales and Marketing Information Profit assessments

Define BE Responsibilities
CBO Managing marketing partners

Role of CBO

Champion and protect the brand: Look and Feel Envision the future of the brand Is accountable for:

Advertising Positioning Corporate communication Consumer and market insights

Market Orientation
Reference: Reid Mike, Luxton Sandra, Mavondo Felix (2005), The Relationship between Integrated Marketing Communication, Market Orientation and Brand Orientation, Journal of Advertising,Vol.34, Issue 4,Winter, pp.11 - 23

Market Orientation suggests that all information on all important buying influences permeates every corporate function, and, in accordance, strategical and tactical decisions are made interfunctionally and interdivisionally.

Elements of Market Orientation:

Customer Orientation: Active encouragement of customer comments and complaints, an after-sales service emphasis, regular evaluation of ways to create superior product/service value and regular measurement of customer satisfaction levels. Competition Orientation: Regular monitoring of competitor activity, the collection and use of market information on competitors to develop marketing plans and using sales force to monitor and report competitor activity
Interfunctional Coordination: Sharing of market information across departments, interaction of marketing personnel with other departments and joint assessment of customer needs

Brand Orientation

an approach in which processes of the organization revolve around the creation, development and protection of brand identity in an ongoing interaction with target customers with the aim of achieving lasting competitive advantage

How brand orientation is achieved

Focus on distinctiveness: Distinctiveness of a brand in the eyes of consumers is not a property of the actual product, but a product of communications of brand Brand functionality or utility: Brand ulitity is not absolute attribute of a product or service because many products serve the same function, rather brand functionality is heavily influenced by brand communication

Value addition:Value is increasingly being created outside the physical product by factors such as interactions between organizations and customers, responsiveness of complaints and customer needs and expectations. Symbolic capabilities of the brand in line with customer personality and values

Elements of BO

Shared brand vision: Brand is considered to be integral with other resources and competencies and there is an explicitly communicated vision with clear allocation of responsibility and authority Shared brand functionality: brand communicates distinct functional attributes and benefits different from competition Shared brand positioning: All communication related to the brand is linked to appropriate competitive positioning and value

Brand return on investment: Brand-oriented managers see brands as underpinning the orgnizations strategic resource base Brand symbolism: brand has strong emotional and symbolic appeal and brand is the expression of customers personality and values Brand value-adding capability:Value is increasingly being created outside the physical product by factors such as interactions between organizations and customers, responsiveness of complaints and customer needs and expectations.

Measuring Sources of Brand Equity

Aakers (1991) Classification of brand associations:

Product attributes Intangibles Customer benefits Relative price Use/ application User/ customer Celebrity/ person Life style/ personality Product class Competitors

Kellers (1993) classification:

Brand associations could be classified into here major categories of increasing scope: attributes, benefits and attitudes.

Attributes are descriptive features that characterize a product or service.

Attributes can be further classified into product related and non product related. Benefits are the personal values customers attach to product or service attributes that is, what consumers think the product or service can do for them.

Benefits can be further classified into functional, symbolic and experiential.

Brand attitudes are defined as consumers overall evaluations of the . brand.

Lets discuss about brand associations

Reference: Supphellen Magne (2000), Understanding Core Brand Equity: Guidelines for In-depth Elicitation of Brand Associations, International Journal of Market Research, Vol.No. 42, Issue, 3, 319 -64.

Forms of brand associations:

Though Brand associations are generally considered to be verbal various other forms of memory associations exist which include visual, sensory and emotional. In low involvement conditions, where individuals do not spend a lot of time and effort considering alternatives, emotional brand associations are often the dominating determinants of choice.

Characteristics of Brand Associations:

Most of the brand associations are unconscious as only a minor proportion of the impression are subjected to deliberate reasoning. Associations are usually stored as metaphors. Metaphor is description of thing in terms of different things. Some associations are part of many clusters and some are present only in some clusters which implies unless specific situations are elicited brand associations cannot be elicited.

Problems of Association Elicitations

Access: A majority of brand associations are unconscious; this could reflect a lack of ability of the researchers to surpass the conscious primary associations which are easily elicited. Verbalization: Associations which are not verbal are (generally) not subjected to active cognitive reasoning and not readily communicable Censoring: In spite of successful elicitation of hidden unconscious associations, respondents might consciously or subconsciously hold them and report only those associations that comply with their desired identities.

Three general principles to minimize problems of elicitation:

Principle 1: Focus groups are not sufficient, long personal interviews are needed Principle 2: Select portfolio of techniques that are complementary with respect to the three problems of access, verbalization and censoring Principle 3:Validate elicited associations

Challenges of access and verbalization:

i. Include at least one visual technique:

Mood board technique: Respondents are instructed to select pictures from magazines or newspapers that represent what they think or feel about the brand. Respondents describe the pictures, and associations are derived from content analysis of the descriptions

ii. Include at least one object projective technique:

Object- projective techniques respondents are instructed to describe the brand in terms of a car, an animal, a fabric a vegetable, a celebrity etc. Such stimulus objects are wellknown and have rich associative networks.

iii. Use primary associations as a cue for secondary associations and so on:

Snow-balling technique: Use primary associations as stimulus words for subsequent probing of secondary associations (e.g. what do you associate with quality?). In turn some important secondary associations may be used as cues in third test and so on. This technique is especially suited for gaining in-depth insight into the multifaceted nature of primary associations.

iv. Probe for relevant situations:

Situation-projective technique: With this technique, respondents are subjected to drawings of situations involving brand (e.g. man driving Mercedes) and instructed to describe the situations and the thoughts and feelings of people involved.

v. Use real stimuli when practically possible:

The use of real stimuli may elicit extra associations. For example, before asking users of a coffee brand about associations, we let them have a taste of the coffee. The result could be very rich descriptions of taste experiences, emotions and social experiences involving the brand. Other forms of real stimuli include brand elements such as brand names, logos, symbols, brand characters, slogans, jingles and packages.

vi. Use established scales for emotional and personality associations: Scale of emotions: Burke, M.C & Edell, J.A (1987) The impact of feelings on ad-based affect and cognitions. Journal of Marketing Research, 26, pp. 69-83 Personality Scale: Aaker Jennifer (1997) Dimensions of brand personality, Journal of Marketing Research, 34, pp.347 -56

Mitigating Censoring Effects:

Person projective techniques: Using PPT, respondents are instructed to report associations on behalf of some person or figure belonging to the same group as the respondent

Sample issues

Elicit associations from different types of customers (should contain heavy, average, light and non-users) and from the advertising people. Divide the sample into two and include both users and nonusers: Dont run the all techniques on same sample, there is a probability of getting similar response, also every technique should have participants comprising of both users and non-users.

Order of techniques:

Start with instructions and visual techniques and probe to verbal techniques

Laddering Technique

Reference: Reynolds, T.J. and Gutman, J. (1988) Laddering Theory, Method, Analysis and Interpretation Journal of Advertising Research, Vol.28, February, pp.11-31

STEP 1: Elicitation Distinction:

Preference Consumption Differences: Respondents, after providing a preference order for, say, brands of coolers, might be asked to tell why they prefer their most preferred brand to their second most preferred brand, or more simply to say why one particular brand is their most preferred (or second most preferred, least preferred, etc.)

Differences by Occasion: In most cases it is desirable to present the respondent with a personally meaningful context within which to make the distinctions. For example, it might be suggested to a mother with young children that she has been out shopping with her children, and it being lunch time, she wants to stop for lunch on the way home. Three convenience restaurants could be compared for their suitability with respect to this usage situation.

STEP 2: Selecting key distinctions to ladder:

Typically, a respondent can only mention 10 to 12 different distinctions for a given product category. Interviewer can present a card with all the mentioned distinctions on it and have the respondent rate the relative importance of each, then select those with the highest ratings

Laddering refers to an in-depth, one-on-one interviewing technique used to develop an understanding of how consumers translate the attributes of products into meaningful associations with respect to self, following Means-End Theory. Linkages between the key perceptual elements (is expressed by the respondents) across the range of attributes (A), consequences (C) and values (V).

How to ladder

Evoke situational contexts: Respondent states he takes more wine coolers in party than in private

Unblocking: Respondent states he likes full bodies taste of wine cooler What is so good about full bodied taste

Negative laddering: Why wouldnt you buy a 16 ounce bottle when it is available

Age regression contrast probe: Ask as to whether the respondent behavior has changed over time

Third person probe: Why do your friends drink wine coolers?

Free Associations Technique

Ask subjects what comes to their mind when they think of the brand Provide an indication of strength, favorability and uniqueness of brand associations

PROJECTIVE TECHNIQUES: NESCAFE STORY BUBBLE EXERCISES COMPARISION TASKS: If your BDM teacher was a bird

Zaltman Metaphor Elicitation Technique

Technique for eliciting interconnected constructs that influence thought and behavior Participants select images from their own sources that reflect the research topic Depth interview is performed upon the participant thereafter

Interviewer does a guided conversation with the participant

Story telling the content of each picture Missing images and whats their relevance Sort pictures into meaningful groups and name each group Elicit constructs and their interconnections Choose the most representative picture Most opposite picture Sensory images: color, smell, taste etc Mental Map generation Creation of summary image Video recording of synopsis

Brand Personality
Qualitative method:

Description of brand as a person

Quantitative method: Big 5

Quantitative Research Techniques

Brand Awareness

Recognition: Missing letters Distorted logos

Recall: Situations: Healthy snack, Quick snack, Snack with friends Missing letters: D_l_ e & G_b_ _n_

Brand Asset Valuator:

Reference: Agres, Stuart J. and Dubitsky, Tony M. (1996), Changing needs for brands, Journal of Advertising Research, Jan/Feb, pp. 21-30 4 Pillars of brand building:

Differentiation: Perceived distinctiveness of the brand from others and its reason for being

Relevance: It is the personal appropriateness of the brand. If a brand isn't personally appropriate to consumers, it is neither going to attract nor keep themcertainly not in any great numbers.
Esteem: How highly consumer regards the brand under consideration. Esteem can be explained by high quality and popularity. Knowledge: Being aware about the brand and existence of belief of having an understanding about what the brand stands for.

Identifying where am I?

High on differentiation and low on other attributes: New brand High on esteem and low on relevance: Maturing brand Differentiation > Relevance > Esteem > Knowledge: New Strong Brand

Opposite pattern to the above: Fading Brand

Check my Health!

Growing brand: Esteem > Knowledge

Knowledge > Esteem => selling more to same consumer at lower and lower prices ; + => with low quality perceptions => Potential occurrence of discount selling.

Brand Image Assessment

Brands

Service Time

Ambience

Entertainment

Service Staff

Taste

Customization

Sitting Arrangement

Hygiene

PD

3.25
2.75 2.25 1.75

3.50
1.50 2.25 2.75

3.25
2.25 2.50 2.00

2.75
2.75 2.50 2.00

4.00
2.50 1.75 1.75

3.00
2.00 2.50 2.50

2.75
1.50 2.50 3.25

3.50
2.25 2.50 1.75

DD
Sharmaji Loventilla

Perceptual Mapping: Attribute based

Preference Mapping:

Dimension 1: Variety & Taste Dimension 2: Ambience

Measuring outcomes of CBBE

Videocon Multibrand Strategy

Comparative Methods

Measure differential effect of brand knowledge

Two kinds: Brand based comparative, Marketing based comparative

Brand based comparative: Reaction to element of marketing program for the brand vis a vis fictitious brand Market based comparative: Reaction to element of marketing program for a brand vis a vis reaction to element of marketing program when changed for the same brand

Brand based comparative approach

Example: Blind test

Fictitious product could also be a product category leader or exemplar

Critique: Lacks realism

Marketing based Comparative Approach

Example: Dollar metric, Demand discount curve

Explore potential brand extensions

Critique: It is difficult to ascertain whether the changes in marketing stimuli are caused because of brand knowledge or changes in product category knowledge

Conjoint analysis:

Critique: unrealistic product profiles

Holistic Methods

Measures overall value of brand in financial terms or utility terms Residual approach: Preference for brand Preference for physical product Valuation approach: Calculates financial value of the brand

Residual Approach

Preference of branded product Preference of physical product = Preference for the brand

Swait and Colleagues equalization price: EP is a measure of the implicit value to the individual consumer of the brand in a market in which some degree of differentiation exists vis--vis its implicit value in a market characterized by no brand differentiation.
Park and Srinivasans Method (1994) Brand equity = overall preference - objective multi-attribute preference Brand equity = (overall preference subjective multi-attribute preference) + (subjective multi-attribute preference objective multi-attribute preference) Brand equity = (Non attribute based component) + (Attribute based component)

Critique:

Too many attributes, undesirable

Attributes could build brand equity

Research Note
CBBE as a measure of price premium

Dollar Metric by Aaker (1996): the amount a consumer is willing to pay for a brand in comparison with another a non-branded product offering similar features
Crimmins (2000) proposed that brand equity is the ratio of the brands price to its competitors price when both are equally desirable to consumer, minus one.

Multi-attribute measurement of CBBE

Conjoint Analysis by Green and Wind (1975)

Survey based measure by Park and Srinivasan (1994)

CBBE as a combination of multiple convergent measures:

Agarwal and Rao (1996)

Psychometric Measurement

Yoo and Donthu (2001)

Netemeyer et al (2004)

My Experiment AMSJ (forthcoming)

Valuation Approaches
Why should brands be valued?

Mergers and acquisitions Brand licensing As collateral Brand management decisions: Allocate resources Develop brand strategy Prepare financial reports

BCG Matrix

Accounting perspective of branding

Intangible assets are any factors of production or specialized resources that permit the company to earn cash flows in excess of the return on tangible assets. Ex: Patents, trademarks, licensing agreements Why should brands appear on balance sheets?

Current approach to deduce the value of a brand

Cost approach Market approach Income approach

Cost approach:
Amount of money required to reproduce or replace the brand. Includes: Costs for research and development Test marketing Advertising etc.

Criticism:

Doesnt indicate future profitability Difficult to isolate investment in brand development from other investments Replacement also depends upon competitive, legal, logistical obstacles and obviations

Market approach:
It is the present value of the future economic benefits to be derived by the owner of the asset.
It is the amount that can be exchanged today in lieu of selling the brand between willing buyer and willing seller in open market transaction Criticism Brands are transacted in open market

Income approach:
Discounted value for the future earning stream for the brand
Three approaches: 1. Royalty earnings 2. Profit premiums 3. Total profitability due to brand name cost of maintenance cost of taxation

Interbrands valuation methodology

Income based approach:

Steps: 1. Market segmentation and calculating value of the brand in each segment 2. Financial role of brand: Calculate brand revenues operating costs taxes charge for capital employed for each segment 3. Demand role of brand (role of branding index): Identify various drivers of demand and determine the degree to which each driver is influenced by brand.

4. Drive brand discount rate based on risk profile of its expected future earnings 5. NPV of brand earnings discounted by brand discount rate.

Designing and Implementing Branding Strategies

Branding strategy / Branding architecture

Which brand elements can be applied to existing / new products

Branding strategies:

Branded house: Umbrella branding House of brands: Collection of individual brands with different names

Role of branding strategy? Clarify the meaning of the brand Motivate consumers to purchase the product

Brand product matrix

Product 1 Product 2 Product 3 Product 4

Brand 1
Brand 2 Brand 3 Brand 4 Brand line: (row) products + category extensions (breadth) Longer brand lines decrease the consistency of associated brand image if all products use same brand (Laura Ashley) Brand portfolio: (column) set of brands that a firm offers for sale in particular product category (depth) Any brand in the portfolio should not harm or decrease the equity of the others

Some definitions
Product line: Product line is a group of products within a product category that are closely related because they function in similar type of outlets, or fall within same price range or marketed to same consumer groups

Product mix: All product lines that seller makes available to buyer
Brand mix: Set of all brand lines that particular seller makes available to buyers

Depth of branding strategy

To target different price segments To target different channels of distribution To target different geographical segments To increase shelf presence To increase retailer dependence To attract consumer seeking variety To increase internal competition within firm To yield economics of scale in advertising, sales, merchandizing, and physical distribution

MANTRA? Maximize market coverage but minimize brand overlap

Roles of brands
Flankers: To create competitive points of parity with competitive brands so that flagship brands can retain their positioning

Must not be very attractive At the same time, they must not be abhorrent

Cash cows: yield profitability despite of no marketing support

Low end entry level or high end prestige level: traffic pullers

Brand Hierarchy

Corporate brand (Pepsi) Family brand (Frito-Lay's) Individual brand (Lays) Modifier (Achari Aam)

Corporate Image Dimensions

Common product attributes, benefits or attitudes People and relationships Values and programs Corporate credibility: expertise, trustworthiness, likability

Using cause marketing to build CBBE

Some revenue earned is contributed towards a specific cause

Advantages?

Builds corporate brand image Builds awareness Establishes brand credibility Evoke brand feelings Create sense of brand community Elicit brand engagement

Designing cause marketing program

Associate cause with brand element (ronald mcdonald house charity)

Green marketing: Concern for environment

Green your product before you are forced to Communicate environmental aspects of the products Deliver on performance and price Dramatize environmental benefits Stress tangible benefits Be consistent

Branding strategy
Corporate Dominant: Corporate brand:Virgin Airlines,Virgin Mobiles House brand: Dairy Milk Eclairs Mixed Brand: Dual brand: SURF Excel Endorsed brand: 5 Star by Cadbury Brand Dominant: Mono brand: Lays Furtive brand: Lexus

How should firm use different levels of hierarchy?

Required:

Number of levels in the hierarchy Desired brand awareness and brand image at each level Combination of brand elements from different levels of hierarchy If at all one brand element can be linked to different products

Deciding upon number of levels

Combining existing brand with a modifier = Sub branding EX: Lenovo Think Pad, Horlicks Nutribars Endorsement: Individual brand endorsed by parent / family brand but not directly included in brand name. IPOD by Apple

Principle of simplicity: Provide right amount of branding information.

Low involvement: 2 or 1 High involvement: More than 2

Deciding upon desired awareness and image at each level

Principle of relevance: Marketers should create associations that are relevant to as many brands nested at the level below as possible. Garnier: Apna Khayal Rahkna (Take care of yourself) Principle of differentiation: Marketers should distinguish brands at the same level as much as possible. P&G home care: Ariel and Tide.

Deciding upon combining brand elements from different levels

Kinds of corporate product relationships:

Single entity: FedEx (Individual) Brand dominance: Surf, Tide Equal dominance: Tata Indica, Tata Tavera Mixed Dominance: Cadbury Dairy Milk, Dairy Milk Eclairs, Cadbury 5 Star Corporate Dominance: IBM Software solutions and IBM Server solutions

Principle of prominence:

Relative prominence of brand elements decide which element(s) become the primary ones and which elements become the secondary ones.

Linking brand elements to multiple products

Principle of Commonality: More common brand elements products share, more stronger the linkages between the products. McDonalds: Chicken McNuggets, Egg McMuffin, McVeg Sandwich.

Developing a sustainable brand architecture

Adopt strong customer focus Avoid over branding Establish rules and conventions and be disciplined Create broad and robust platforms Selectively employ sub-brands as a means of complementing and strengthening brands Selectively extend brands to establish new brand equity and enhance existing brand equity.

Introducing and Naming New Products and Brand Extensions

Only 2 out of 10 new products are generally successful

ANSOFFS MATRIX

Brand Extension Kinds

Terminology:

Brand Extension: Same brand name but new product, new variant (Ponds cold cream New, Ponds body lotion) Sub brand: New brand name combined with existing brand name (Horlicks Nutribar) Family brand: Parent brand associated with multiple brand extensions (Samsung)

Kinds:

Line Extension: Different flavor / ingredient / variety / form / size Rin liquid detergent, Lenovo Think Pad X series (Tablet PCs) Brand Extension: Same brand name but different product category Samsung Mobiles, TVs now into Laptops

Forms of brand extension

Same product in different form (Rin liquid detergent) Introduce products that contain the brands distinctiveness (taste, ingredient or component) (Dairy milk clairs) Introduce companion products for the brand (Gillette shaving cream to accompany Gillette Razors) Introduce products that capitalize firms perceived expertise (Xerox DocuMate Scanners) Introduce products that reflect the brands distinctive benefits (Dettol soap on the based upon expertise of Dettol Sanitizer) Introduce products that capitalize the prestige of the brand (Park Avenue deo capitalising on Park Avenue Clothing line)

Advantages of extensions
Facilitate new product acceptance By improving brand image of the extension By becoming a risk reducer (perceived risk) By increasing the probability of gaining distribution and trial By increasing efficiency of promotional expenditure Reducing the cost of introductory and follow-up marketing programs By avoiding the cost of developing a new brand By allowing for packaging and labeling efficiencies By permitting variety seeking to consumers (Suave:You dont have to spend a lot to get a lot)

Provide feedback benefits to the parent brand Clarify brand meaning What does Bata mean? What does Loreal mean? What does ICFAI mean?

Enhance parent brand image Think pad Lenovo consumer electronics

Bring new consumers Permit subsequent extensions Reliance rage!

Disadvantages of brand extensions

Confusion Consumers willing to sample when there were 6 flavors . than when there were 24 Retailer resistance 100 flavors of campbell soup Can hurt parent brand image (Audi problem) Extensions cannibalize the parent brand (Diet coke) Diminish identification with any category (Wipro) Can hurt the image of parent brand (Miller Lite hurts Miller High Life)

How consumers evaluate brand extensions?

Conditions requisite for favorable extension evaluation:

Positive associations about the parent brand At least some of this positive associations should be evoked by brand extension (Samsung Entertainment) Negative associations should not be transferred from parent brand Negative associations should not be transferred to parent brand (Budweiser Select depletes Budlight)

Creating positive image for an extension: Consumer related factors analysis

APPLE ________________

Salience of parent brand associations in extension context. (Does any info pertaining to apple come to your mind in context with extension proposed) Favorability of parent brand associations in extension context (Good / Bad / Neutral evaluation of such info) Uniqueness of parent brand associations in extension context (Does any info give rise to competitive advantage?)

Contributing to Parent Brand Equity

To contribute to parent brand equity, extension must strengthen favorable and unique associations with parent brand. Evaluating the effects of extension on parent brand: Compellingness of evidence about the benefit associations in extension context To what extent consumers see performance in one product category as predictive of performance in other category (relevance) Consistence of extension evidence Strength of associations held about parent brand

Evaluating brand extension opportunities

Identify possible extension candidates Evaluate the potential of extension candidate (point of parity with parent brand BIC, competition analysis A&H) Design marketing programs to launch extensions (Kodak ultra life YR) Evaluate the effects of extension on parent brand equity

Vertical Brand Extensions

Brand is extended to premium segments or value segments Upward extension improves brand image Down ward extension should target value segment but should not carry forward negative associations to the parent brand

Advantage of upward extension

Improves brand image Premium brand brings with it positive associations

DISADVANTAGES

Confuse customers with respect to price point Downward extension might harm parent brand Cannibalization of parent brand

Extension guidelines based upon ACADEMIC RESEARCH

Recipe for a successful brand extension: Parent brand should have favorable brand association Consumers should perceive fit between pb and ext Enough pops between pb and ext

Kinds of fit: Attributes / Benefit based fit Non product related attributes based fit

Brand Concept: Unique associations that arise from particular combination of attributes, benefits and marketing efforts. Match the following LHS a) Rolex b)Timex RHS c) Stop watches, batteries and Calculators d) Grand father clocks, Bracelets and Rings

Fit may be perceived based upon manufacturing commonalities or situational complementarities Ex: HONDA Cars, Lawn movers M____s Colgate tooth paste Tooth brush High quality brands can stretch further than other brands

Brand that consumers see as prototypical for a product category can be difficult to extend outside the category Example Xerox
Concrete attribute associations tend to be more difficult to extend than abstract benefit based associations

Consumers may transfer associations that are positive in product class context but become negative in extension context Campbell sauce PREGO It can be difficult to extend into a product class that consumers see as easy to make Successful extension helps brand to extend even further Example: Reliance

An unsuccessful extension doesnt prevent a firm from backtracking and introducing more similar extensions Example: Kellogs Corn flakes Biscuits Vertical extensions require sub branding strategies Example: Court yard Mariot Marquis Effective advertising strategy for extension is one that emphasizes information about the extension than reminding about parent brand.

Volkswagens IROC
Whats a Sports Coupe Has closed body Is performance car Generally a small car

SCIROCCO

What are the positioning led reasons behind introduction of IROC What were the conducive market factors which enabled the company to consider introducing IROC What is the rationale behind naming Scirocco latest variant as IROC Can you identify measures taken up by VW to ensure success of IROC

Managing Brands Over Time

Managing Brands Over Time

1. Reinforce brands: How to reinforce the core brand associations of the brand over time? 2. Revitalizing brands: How to revive the fallen brands which were once stars / cash cows? 3. Adjustments to brand portfolio: How to evaluate the change in role of brands over period of time and adjust your brand portfolio accordingly?

Two important aspects the marketer should consider in attempt to reinforce brands:
1. 2.

Consistency of nature in communicating about the brand Extent of marketing support the brand receives

Inadequate marketing support: Case 1

Plumbers, superstores, Internet shopping

Case 2:

pc
GATE WAY

Branded stores

isp

Consumer electronics

What does consistency mean?

Consistency in price? Consistency in attributes? Consistency in positioning?

Case 3: Jack Daniels Consistency

Protect key sources of brand equity

Case 4: Intel Floating decimal problem: Miscalculations in rare instances Core brand associations challenged! Case 5: Wonder Bread Once staple bread Delay in marketing action

Fine tuning supporting marketing programs

Case 6: Failure to innovate Smith Corona type writers BRAND CONCEPT MANAGEMENT Brand concept: Meaning to a brand derived from its basic consumer needs Kinds of consumer needs: Functional needs: basic motivations (physiological and safety) Symbolic needs: social approval or ego identification Experiential needs: sensory pleasure

Three stage process of BCM:

1.
2. 3.

Introductory stage: Establish brand image and position in market place Elaboration stage: Sustain the perceived superiority to competitors Fortification stage: Link the brand image to other products in different product classes.

Case 7: Bacardi Rum Increasing popularity of VODKA

Non product related imagery associations

Advice: Focus on user and usage imagery.

Changes in Pepsi Tagline

Pepsi Generation Choice of a new generation Gotta have it Be young. Have fun. Drink PEPSI Generation Next Youngistan (India)

Revitalizing brands
Return to the roots to capture lost source of brand equity

kate moss

How to revitalize the brand

Check for the evidence that values exist and were part of brands magnetism in healthier days Use qualitative techniques to revoke those associations and check for its strength favorability and uniqueness Decide upon positioning options (company based, competition based or consumer based)

Kinds of positioning strategies:

Back to basics Reinvention

Refreshing old sources of brand equity / Create new ones:

1.
2.

Improve recognition and recall during purchase and consumption settings Improve strength favorability and uniqueness of associations that make up brand image

Expanding brand awareness

Identify additional or new usage opportunities:

Appropriateness of using brand more frequently (Colgate) Remainders to consumers to actually use the brand as close as possible in time to those situations (Hit)

Identify new or completely different ways to use a brand:

Arm and Hammer: Baking soda, deodorizing properties Tums: anti-acid + calcium suppliment

Improving brand image

Reposition the brand:

Establish more compelling points of difference (Barbie) Intergenerational influence: influence of parents purchase behavior on children (The Hindu) Establish point of parity on key image dimensions

Change brand elements:

Abbreviating KFC

Enter new markets:

Brand product matrix (Repeat slide)

Product 1 Product 2 Product 3 Product 4

Brand 1
Brand 2 Brand 3 Brand 4 Brand line: (row) products + category extensions (breadth) Longer brand lines decrease the consistency of associated brand image if all products use same brand (Laura Ashley) Brand portfolio: (column) set of brands that a firm offers for sale in particular product category (depth) Any brand in the portfolio should not harm or decrease the equity of the others

Adjustments to Brand Portfolio

Migration Strategy: BMW 3, 5, 7 Series Acquiring new customers: Challenge in acquiring new consumers when the brand is strongly associated with a particular consumer group. / product category Ex: Beetle / Dove Multiple marketing communication programs <Beetle> Brand Extensions and Sub-branding: Jeep SUV New Distribution outlets: Sunglasses Retiring Brands: Reduce the number of variants Consolidate brands Discontinue the brands

Case Questions

What are the reasons for failure of old Beetle? Why was Beetle re-launched? What were the conducive factors for re-launch of Beetle? Which positioning strategy was adopted while relaunching Beetle? Discuss POPs and PODs of new Beetle with old Beetle Why did you think consumers fell in love with Beetle brand? Discuss the appropriateness of new beetle segmentation?

Managing brands over geographic boundaries and market segments

Regionalization
Having separate marketing mixes for different regions of a country

Why regionalization? Mass markets are splintering Availability of computerized sales data from super market scanners Ebullience of regional media
Pitfalls of regionalization Production costs rise Marketing efficiency may suffer Brands national identity may be blurred

South India Vs North India

FOOD: Tamarind and coconut

Spicy food

More milk based products like Paneer, butter etc Not very spicy

CLASSICAL MUSIC Carnatic

APPAREL Sarees and Dhotis

Hindustani

Salwars

Demographics South vs North

Population composition Older population Slightly more females Income levels: More wealther Family Composition 4-5 in household

Younger population Slightly more males

Less wealthier

In some areas 7-10

Some examples of regionalization

Coke free with Haleem during Ramzan

Sambar Noodles by Maggi

Cartoon Network / NGC programming now in Telugu Regional film stars as brand ambassadors for national brands.

Global marketing programs

One product formulation, one package design, one advertising program, one pricing schedule and one distribution plan for cost effectiveness.

Advantages: Economics of scale Lower marketing costs Consistency in brand image Uniformity in marketing practices Power and scope

Disadvantages of GMP

Difference in consumer needs, wants and usage patterns for products Differences in consumer response to marketing mix elements Price sensitivity Social normative beliefs Difference in brand and product development and competitive environment Differences in legal environment Differences in marketing institutions

Demographic and Cultural Segments

Language problems in communication Difficulty in collecting statistics relating to media habits and buying behavior A thorough analysis on cultural niches required

Global Brand Strategy

Create different marketing programs to satisfy different market segments Identify differences in consumer behavior Adjust brand program accordingly

Brand Pyramid in Global Context Create brand salience Nivea: In Europe Crme, In Asia facial skin care brands Crafting brand image Bravia Example

Eliciting brand responses: Create proper balance and type of emotional responses and brand feelings Chevrolets Karvachout ad Airtels Bandhan Cultivate resonance: Enough opportunities to buy and use the product. Tuborg

Global brand positioning

Validity of mental map in new market? Time is not valued in Arab countries Arabs read from right to left Arabs dont take interest on loan Indians dont generally buy in bulk Changes to be made to positioning French people traditionally dont like fast food Wine is not sophisticated but a house hold drink French prefer buying anti-dandruff shampoos in pharmacies Create new mental maps when ever required

Building Global CBBE

1.Understand similarities and differences in global land scape 1. DIFFERENCE: Developed vs. Developing markets: Developed markets more technologically advanced features, stringent adherence to standards better after sales service. Developing markets emphasis on coverage thru unorganized retail emphasis on value for money simplicity and efficiency lower on diffusion on innovation hence can command price premium

II. SIMILARITY: Life style Western life style embraced all across the world by youth, bro! Standardized marketing communication can work for youth oriented products 2. No shortcuts in building brand equity! Kellogs headaches: Indians dont prefer RTE breakfast Asians believe only young have milk for breakfast Brazilians dont eat breakfast French have hot milk in breakfast

3. Establish marketing infrastructure

Mc Donalds exports potatoes from Russia Donkeys are used to distribute Coke in Ladakh Pepsi lost marketshare in Germany because it alienated to major retailers: Tengelmann, Asko

4. Embrace Integrated Marketing Communications

Take charge of channels that speak to wider geographies but target same demographics. Ex: Star TV in ASIA SKY TV in Common Wealth Countries MTV speaks to youth world wide
Use un-conventional channels when required Ex: Tupper ware distribution is built around kitty parties Colgate Pomolive used Video vans in rural areas to build awareness about the brand.

5. Cultivate brand partnerships

Ex: Lipton partnered with Pepsi Co.

Alternative ways to enter global market: 1. Export the brand to new market 2. Acquiring existing brand sold in new market but not owned by the firm 3. By creating brand alliance with other firm

6. Balance standardization and customization

Which products shouldnt be standardized: Ones that are strongly associated with culture of the country Food, entertainment
Which products should be standardized: Functional, fashion, b2b, up class, products positioned on COO.

7. Balance global and local control

Three approaches: Centralization at head quarters Decentralization at local markets Mix of both
8. Establish operable guidelines

Deploy brand charters or code books Practice internal branding

9.

Implement global brand equity measurement system Track the growth of the brand across countries

10. Use brand elements All pototo chips which Pepsi owns are marketed under LAYS

Strategy Terms

Brands

& Advertising can be globalized or localized

Products

Services can be standardized or customized

&

Product Adaptation
STANDARDIZE Brand name Product positioning Warranties Packaging Advertising theme CUSTOMIZE Distribution Personal selling Pricing Media selection

Standardize or Customize?

No one product for every country Expensive to produce variety Global branding, local usage Think global, act local optimizes brand and product adaptation

When is Product Standardization Best?

In markets with similar economies If segments are customers, not countries When lifestyles are similar For industrial and hi-tech products With centralized authority

Globalization & Standardization Criteria

Industry/Product Category Factors

Company competitive factors

Global/ standardized Local/ customized Attitudes toward foreign images

Cultural Factors

Matrix of Strategies
Standardized product Localized communication Levis Jeans, Coca Cola Customized Product Localized communication Nestle Chocolate, McDonalds
Customized product Global communication Dell

Worldwide standardized product and global communication Mont blanc pens, adidas

Qualities of Multi-Cultural Advertisements

Recognize

the culture of the category Reflect the culture of the brand Respect the culture of the consumer

Pricing

Similar (at par with exchange rates) Based on PPP Different (based on diffusion on Innovation)

Dell India

Dell US

CLOSING OBSERVATIONS

What makes up the differential response?

Strength of brand associations: How deep the person thinks about a brand: relevence + consistency Favorability of associations: Favorability of associations will change according to context some times along with time Uniqueness: Provide meaningful reasons as to why the consumers should buy the product.

Determinants of brand knowledge structures

Depth of brand awareness: recognition and recall Breadth of brand awareness: no. of purchase situations in which brand comes into mind Strong brand associations: relevant and consistent information fed over time Favorable brand associations: connote distinct benefits which consumer desires Unique brand associations: Negate competitive points of difference and establish category points of parity along with Points of difference.

Outcomes of brand equity

Loyalty Less vulnerability to competitive actions Less vulnerability to marketing crisis Larger margins Inelastic response to price increase Elastic response to price decrease Greater trade cooperation and support Increase in marketing communication effectiveness Possible licensing opportunities Additional brand extension opportunities

Tactical Guidelines:
Design and Delivery of brand elements:

Complementarity: Short comings of one brand element should be over come by other brand element
EX: Lipton Ice Tea Consistency: All brand elements should be consistent upon positioning communication of the brand.

Measuring Brand Equity

Based upon sources of brand knowledge measurement: Qualitative research Outcomes of brand equity: Quantitative research

Implementation of brand equity measurement system:

Build brand charter Have brand inventories: how brand is marketed and brand exploratory: what consumers are thinking about the brand Conduct consumer tracking studies on routine basis Assemble tracking survey results into report and distribute it to members Establish a person or department to oversee the implementation of the brand equity charter and recommendations.

What maketh a strong brand?

Make products that reinforce brand meaning Position the products properly Provide superior delivery of desired benefits Employ full range of complementary brand elements Measure consumers perception of value and develop pricing strategy accordingly Establish credibility and appropriate brand personality and imagery Maintain innovation and relevance for the brand Strategically design and implement brand portfolio Implement brand equity management system to ensure marketing actions properly reflect brand equity concept

7 deadly sins of brand management

Failure to fully understand the meaning of the brand Failure to live up to brand promise Failure to adequately support the brand Failure to be patient with the brand Failure to adequately control the brand Failure to balance consistency and change in the brand Failure to understand the complexity of brand measurement and management

Guidelines for B2B products

Adopt corporate or family branding strategy instead of promoting at individual brand level Build more product related associations Emphasis on customer service Confront with your prospective buyer face to face Leverage equity of other companies that are customers Develop tailored marketing and branding strategies for influential decision makers in the system

High Tech Products

Characterstics: Change rapidly Continuous innovation Have shorter life cycles Tactics:

Establish rich brand image but not basis of product attributes Create corporate credibility associations Create secondary associations of quality (third party endorsements, leading consumer magazines) Maintain array of family brands

Retailers

Brand individual departments (Sams Club) Exploit manufacturers brand equity Establish equity in selection, purchase and delivery of product offerings Create multichannel shopping experiences

Small Business

Emphasize on building one or two brand associations Focus the marketing program on one or two brand associations Employ a well integrated set of brand elements Design creative brand building campaigns Leverage as many secondary associations as possible

Online

Keep name simple Generate strong customer pull Choose selective brand positions Maximize relationship marketing

Future branding priorities

Muti-dimensional brand elements Please find us on face book, tweet us on twitter Better brand equity measurement system Managing brand equity: Internal brand management, external brand management, bottom up brand management and top down brand management Adjust tradeoffs decisively

RELEVANCE SIMPLICITY AND HUMANITY WILL DISTINGUISH BRANDS IN FUTURE

My take on Branding

Every product connotes a bundle of benefits. Branding is all about promising and communicating those benefits Brand management is systematic effort to exemplify, communicate and ensuring proper channelization of benefits from marketer to consumer Key role of brand manager is to identify salient benefits and ensure that brand elements effectively communicate those salient benefits

THANK YOU CLASS

Gosh, I have no farewell speech ready! All I have to say is: Enough of Kotler, Keller and Aaker, Now go catch up with friends, volleyball nets and cricket bets Reach me at: abhilashponnam@gmail.com Mob: 8143344893