Brands and Branding

Problems and Prospects

Dr. Prashant Mishra prashant@iimcal.ac.in

What is a Brand?
A brand is a name, term, sign, symbol, or design which is intended to identify the goods or services of one seller or group of sellers and to differentiate them from those of competitors.

New Branding Challenges

Brands are important as ever
Consumer need for simplification Consumer need for risk reduction

Brand management is as difficult as ever

Savvy consumers Increased competition Decreased effectiveness of traditional marketing tools and emergence of new marketing tools Complex brand and product portfolios

The Customer/Brand Challenge

In this difficult environment, marketers must have a keen understanding of:
customers brands the relationship between the two

How Brands Are Built

Four Primary Aspects

Knowledge Esteem

The culmination of brand building efforts; acquisition of consumer experience Consumer respect, regard, reputation; a fulfillment of perceived consumer promise Relates to usage and subsumes the 5 Ps of marketing; relates to sale The basis for consumer choice; the essence of the brand, source of margin

Relevance
Differentiation

Strategic Brand Management Process

STEPS
Identify and Establish Brand Positioning and Values

KEY CONCEPTS
Mental maps Competitive frame of reference Points-of-parity and points-of-difference Core brand values Brand mantra Mixing and matching of brand elements Integrating brand marketing activities Leveraging of secondary associations Brand Value Chain Brand audits Brand tracking Brand equity management system Brand-product matrix Brand portfolios and hierarchies Brand expansion strategies Brand reinforcement and revitalization

Plan and Implement Brand Marketing Programs

Measure and Interpret Brand Performance

Grow and Sustain Brand Equity

CUSTOMER-BASED BRAND EQUITY PYRAMID

4. RELATIONSHIPS = RESONANCE What about you & me?

3. RESPONSE = JUDGMENTS FEELINGS

What about you?

2. MEANING = PERFORMANCE IMAGERY What are you?

SALIENCE

1. IDENTITY =

Who are you?

Salience Dimensions
Depth of brand awareness
Ease of recognition & recall Strength & clarity of category membership

Breadth of brand awareness

Purchase consideration Consumption consideration

Performance Dimensions
Primary characteristics & supplementary features Product reliability, durability, and serviceability

Service effectiveness, efficiency, and empathy

Style and design

Price

Imagery Dimensions
User profiles
Demographic & psychographic characteristics Actual or aspirational Group perceptions -- popularity

Purchase & usage situations

Type of channel, specific stores, ease of purchase Time (day, week, month, year, etc.), location, and context of usage

Personality & values

Sincerity, excitement, competence, sophistication, & ruggedness

History, heritage, & experiences

Nostalgia Memories

Judgment Dimensions
Brand quality
Value Satisfaction

Brand credibility
Expertise Trustworthiness Likability

Brand consideration
Relevance

Brand superiority
Differentiation

Feelings Dimensions
Warmth Fun Excitement Security Social approval Self-respect

Resonance Dimensions
Behavioral loyalty
Frequency and amount of repeat purchases

Attitudinal attachment
Love brand (favorite possessions; a little pleasure) Proud of brand

Sense of community
Kinship Affiliation

Active engagement
Seek information Join club Visit web site, chat rooms

Customer-Based Brand Equity Model

ConsumerBrand Resonance

INTENSE, ACTIVE LOYALTY

Consumer Judgments

Consumer Feelings

RATIONAL & EMOTIONAL REACTIONS

Brand Performance

Brand Imagery

POINTS-OFPARITY & POINTS-OFDIFFERENCE

Brand Salience

DEEP, BROAD BRAND AWARENESS

Sub-Dimensions of CBBE Pyramid

LOYALTY ATTACHMENT COMMUNITY ENGAGEMENT

QUALITY CREDIBILITY CONSIDERATION SUPERIORITY

WARMTH FUN EXCITEMENT SECURITY SOCIAL APPROVAL SELF-RESPECT

PRIMARY CHARACTERISTICS & SECONDARY FEATURES PRODUCT RELIABILITY, DURABILITY & SERVICEABILITY SERVICE EFFECTIVENESS, EFFICIENCY, & EMPATHY STYLE AND DESIGN PRICE

USER PROFILES PURCHASE & USAGE SITUATIONS PERSONALITY & VALUES HISTORY, HERITAGE, & EXPERIENCES

CATEGORY IDENTIFICATION NEEDS SATISFIED

POSITIONING A BRAND
Why? For Whom?

When?

Against whom?

KFC : McDonalds
Have you ever wondered why... After four

years in India, Kentucky Fried Chicken (KFC) is struggling with four outlets, while McDonald's already has 16 in just two-anda-half years?

The Local Aloo Syndrome

The Kentucky Blues

Head to Head

Lee : Levis
Have you ever wondered why Lee is lording it over the premium jeans market in India while Levi's, the Original American Jeans, is still trying to get its act together?

The Lee Story

The Levis

Head to Head

Santro : Matiz
Hyundai has sold 20,000 Santro cars till April this year against the 5,000-odd that Matiz from Daewoo has against its name, though both hit the market almost together? And despite the fact that the Matiz outsells the Atoz (the Santro by another name) across the world, and the Matiz is the first Euro-II compliant car in its category?

The Soaring Santro

The Mild Matiz

Head to Head

SONY: STAR
Sony TV, beaming just one channel, took merely two years to hit a turnover of Rs 220 crore while Rupert Murdoch's Star, with seven channels in its armoury, only expects to clock in Rs 300 crore this year, after being in the country for over seven years?

Head To Head

Few Illustrations
Cokes Rural Thrust Hero Hondas Rural Thrust Mahindras Successful Dual Avtar

Branding Decisions
Assign one brand name all of the organizations offerings (GE, Sony) OR Assign one brand name to each line of offerings (Automobiles) OR Assign individual names to each offering (P&G, Unilever)

Branding Decisions
Using a single brand name

Advantage
Easier to introduce new offerings when the brand name is familiar to buyers

Disadvantage
Can have a negative effect on existing offerings if a new offering fails

Sub-branding
combining a family brand with a new brand

Branding Decisions

Decide whether or not to supply an intermediary with its own brand name.
What are the costs/revenues? Is there excess capacity?

If we dont manufacture the brand, will a competitor produce it?

Branding Decisions
New products New Brand New Brand Strategy Existing products Fighting/Flanker Brand Strategy

Existing Brand Extension Strategy Brand

Line Extension Strategy

Line Extension Strategy

Adding offerings with the same brand in a product

class that an organization currently serves

Respond to customers desire for variety

Eliminate gaps in the product line

Lowers advertising and promotion costs

Consider possibilities of product cannibalism and

proliferation of offerings (Coke and Vanilla Coke)

Brand Extension Strategy

The practice of using a current brand name to enter a completely different product class Reduced risk due to brand equity

Success depends on perceptual fit with the original product class

e.g., Yamaha makes motorcycles, sound equipment, computer peripherals, and musical instruments

Brand Extension Strategy: Cobranding

Co-branding Pairing two brand names of two manufacturers on a single product
e.g., General Mills and Hershey Foods Reeses Peanut Butter Puffs

New Brand Strategy

Involves the development of a new brand and often a new offering for a product class that has not been previously served by the organization.

Most challenging strategy

Most costly e.g., Lexus by Toyota

Flanker/Fighting Brand Strategy

Flanker Brand Strategy Involves adding a new brand on the high or low end of a product line based on a price-quality continuum (Marriott Hotels). Fighting Brand Strategy Involves adding a new brand whose sole purpose is to confront competitive brands in a product class being served by an organization. (Frito-Lays Santitas used to fight regional tortilla chip brands).

Thank You