Brand Decisions

Prof. Smitha Sarma Ranganathan

What Is a Product?

A Product is anything that can be offered in a market for attention, acquisition, use, or consumption that might satisfy a need or want

Experiences represent what buying the product or service will do for the customer

What Is a Product?
Consumer products are products and services for personal consumption
Classified by how consumers buy them Convenience products Shopping products Specialty products Unsought products

What is a Brand?
Brand is the name, term, sign, or designor a combination of thesethat identifies the maker or seller of a product or service Brand equity is the differential effect that the brand name has on customer response to the product and its marketing

How are Brands Built? 4 pillars of BAV

Young & Rubicams Brand equity growth model...

Brand Building Process - Brand Differentiation

Brand Differentiation The starting point for all brands is differentiation. It defines how the brand and distinguishes it from all others. As a brand matures, as per the BAV, Differentiation often declines. With good management, a brand can achieve its Differentiation even during maturity.

Brand Building Process - Brand Relevance

Brand Relevance -

If a brand isn't relevant, or personally appropriate to consumers, it isn't going to attract and keep them. There is a distinct correlation between Relevance and market penetration.

Brand Building Process - Brand Strength

Brand Strength The relationship between a brand's Relevance and Differentiation represents brand strength, which is a strong indicator of future performance. Relevant Differentiation remaining both relevant and differentiated - is the central challenge of every brand.

Brand Building Process - Brand Esteem

Esteem Regard for the Brand! Extent to which consumers like a brand and hold it in high regard. It's the consumer's response to a marketer's brandbuilding activity.

Esteem is itself driven by two factors a.) Perceptions of quality b.) Perceptions of popularity, Proportions of these factors differ by country and

KNOWLEDGE IS THE SUCCESSFUL OUTCOME

If a brand has established its Relevant Differentiation and consumers come to hold it in high Esteem, brand Knowledge is the outcome. It represents the successful culmination of building a brand. Knowledge means being aware of the brand and understanding what the brand or service stands for. Knowledge is not a consequence of media weight alone.

Brand Building Process - Brand Stature

Brand Stature is discovered in the combination of Esteem and Knowledge. Brand Stature indicates brand status and scope - the consumers' response to a brand. As such, it reflects current brand performance and is a strong strategic indicator. Eg: Esteem rises

Brands with High Brand Stature

Key terms related to Brands

Brand Positioning Brand positioning refers to target consumers reason to buy your brand in preference to others. It is ensures that all brand activity has a common aim; is guided, directed and delivered by the brands benefits/reasons to buy. Positioning Strategy can be based on - The Consumer and The Competitor Eg: Peter England campaigns concentrate on the consumer, the user of its product. Onida commercials focus on competition

Other Positioning Strategies

POSITIONING BY PRODUCT ATTRIBUTES AND BENEFITS

Ariel - micro cleaning system in the product. Colgate o- preventing cavity and fresh breath. Maruti Suzuki - maximum fuel efficiency and safety over its competitors POSITIONING BY PRICE/ QUALITY Parle Bisleri Bada Bisleri, same price ad campaign. POSITIONING BY USE OR APPLICATION Surf Excel is positioned as stain remover Surf Excel hena! Also, Clinic All Clear Dare to wear Black. POSTIOINING BASED ON PRODUCT CLASS

Other Terms of Relevance

Brand differentiation Brand relevance Brand Identity Brand image Brand Equity

Why Brand?
Buyers perspective Brand names help consumers identify products that might benefit them. Brands say something about product quality and consistency. Sellers Perspective The brand name becomes the basis on which a whole story can be built about a product. The brand name and trademark provide legal protection for unique product features. The brand name helps

Branding Elements
Packaging involves designing and producing the container or wrapper for a product

Labels identify the product or brand, describe attributes, and provide promotion

Branding Strategy: Building Strong Brands

Brand represents the consumers perceptions and feelings about a product and its performance.
It is the companys promise to deliver a specific set of features, benefits, services, and experiences consistently to the buyers

Brand Positioning
Brand strategy decisions include: Product attributes Product benefits Product beliefs and values

Brand Name Selection

1. 2. 3. 4. 5. 6. 7. Desirable qualities Suggest benefits and qualities Easy to pronounce, recognize, and remember Distinctive Extendable Translatable for the global economy Capable of registration and legal protection

The Brand Naming Process

Brand Sponsorship
The product may be launched as a manufacturers brand (or national brand). The manufacturer may sell to resellers who give it a private brand (also called a store brand or distributor brand). The manufacturer can market licensed brands. Two companies can join forces and cobrand a product

Licensing Brands
Brand licensing is the process of creating and managing contracts between the owner of a brand and a company or individual who wants to use the brand in association with a product, for an agreed period of time, within an agreed territory.

Cobranding The Concept

Cobranding occurs when two established brand names of different companies are used on the same product. Advantages. The combined brands create broader consumer appeal and greater brand equity. Cobranding also allows a company to expand its existing brand into a category it might otherwise have difficulty entering alone. Limitations. Such relationships involve complex legal contracts and licenses. Cobranding partners must carefully coordinate their advertising, sales promotion, and other marketing efforts. Each partner must trust the other will take good care of its brand.

Cobranding Examples
Ariel with Whirlpool Castrol with 3M Bike care products

HP recommends Windows 7
Citibank JetAirways privilege Card

Product Line Decisions

A product line is a group of products that are closely related because they function in a similar manner, are sold to the same customer groups, are marketed through the same types of outlets, or fall within given price ranges. Product line length is the number of items in the product line. Product line filling involves adding more items within the present range of the line. Product line stretching occurs when a company lengthens its product line beyond its current range.

Product Mix/Product Portfolio

Product mix (or product portfolio) consists of all the product lines and items that a particular seller offers for sale. A companys product mix has four dimensions: width, length, depth, and consistency. Product mix width refers to the number of different product lines the company carries. Product mix length refers to the total number of items the company carries within its product lines. Product mix depth refers to the number of versions offered of each product in the line. Product mix consistency refers to how closely related the various product lines are in end use, production requirements, distribution channels, or some other way.

Brand Development Strategies

Line Extensions
Line Extensions occur when a company extends existing brand names to new forms, colors, sizes, ingredients, or flavors of an existing product category.

Brand Extensions
Brand Extensions extend a current brand name to new or modified products in a new category.

Multi branding
Multibranding introduces additional brands in the same category.

Managing Brands
Megabrand strategyweeding out weaker brands and focusing their marketing dollars only on brands that can achieve the number-one or number-two market share positions in their categories. The brand experience is customers coming to know a brand through a wide range of contacts and touchpoints. Companies need to periodically audit their brands strengths and weaknesses.

Brand Valuation
Brand valuation is the process of estimating the total financial value of a brand. High brand equity provides a company with many competitive advantages. High level of consumer brand awareness and loyalty. More leverage in bargaining with resellers. More easily launch line and brand extensions. Defense against fierce price competition. Forms the basis for building strong and profitable customer relationships.

THANK YOU