Branding

Role of branding Challenges What is a Brand

A product is found on the shelf. A brand resides in the minds of consumers

You sell a product, you market a brand

What is a brand?

A brand is a product that provides functional benefits plus added values that some consumers value enough to buy

What is a brand?

A name, term, sign, symbol, or design, or a combination of them, intended to identify products of one seller or group of seller and to differentiate them from those of competitors.

What is a brand?

It is the sellers promise to deliver the same bundle of benefits/services consistently to buyers

What is a brand?
What else
Something that enhances or adds value Orange juice vs Real orange juice A meaningful association Young executive needs a car for comfort, adventure, freedom, safety Maruti Alto Lets Go It is a promise/ a contract Airtel promises Network coverage Product becomes a living entity Nokia is a friend always with you
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SAY WHAT
After more than 190,000 blind taste tests, Coca-Cola discovered that consumers preferred New Coke over Coke and Pepsi New Coke replaced CokeFailed miserably!!! Letter from one consumer: I dont drink alcoholic beverages, I dont smoke, and I dont chase other women, my only vice has been Coke. Now you have taken that pleasure from me. Would it be right to rewrite the Constitution? The Bible? To me, changing the Coke formula is of such a serious matter

What can be branded?

Goods Services
Eg:Hotels, Spas, airlines

Places Properties
Eg: Real estate or financial properties

Events Experiences
Eg: Amusement parks, theme restaurants

Organizations Information Ideas

Eg: Social marketing

Persons
Eg: Celebrity marketing

PILLARS OF BRANDING
A great and relevant product
Maruti 800

Constant innovation (techno products)

Nokia, Sony, Samsung

Consistency (CPG)
Coca-Cola, Maggi

Interesting and correct communication (tangible & intangible benefits)

Fevicol, Hutch

Positioning
Johnson & Johnson, Nike, Tide
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The Role of Brands

Identify the maker

Simplify product handling

Offer legal protection

The Role of Brands

Signify quality

Create barriers to entry Serve as a competitive advantage Secure price premium

A brand comprises of
Tangible Attributes

Intangible Attributes

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Tangibles
Like Product Packaging Labeling Attributes Functional benefits
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Intangibles
Like Quality Emotional benefits Values Culture Image
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The six levels of meaning

Attributes Benefits translated attributes: functional & emotional Values Culture Personality User
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Challenges & Opportunities

Savvy Customers
Increased attention Persuasion is difficult Create trustmarks and convert it to lovemarks Love-respect axis

Brand Profileration
Rise in line and brand extension and complications in marketing decisions Eg: Colgate dental cream, Colgate Gel, Colgate Total
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Challenges & Opportunities

Media Fragmentation
Diversification of IMC tools Budget allocation becomes difficult

Increased Competition
Incentive based sales Brand extensions Deregulation Globalization Private labels and low-priced clones

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Challenges & Opportunities

Increased Costs
NPD costs have risen due to associated risks Profits start after a long gap

Greater Accountability
The dilemma of making decisions with short-term benefits but long-term costs Financial market pressures
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BRAND POSITIONING
What is Positioning? Positioning is a platform in the consumers mind on which a brand is placed in a way that makes it different from the rest of its competitors. A Unique Selling Proposition A single promise to its users The essence of a brand
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Value Proposition
A brands value proposition is a statement of the functional, emotional, and self-expressive benefits delivered by the brand that provide value to customers in the target segment Should have the right balance of benefits with relative price The purpose of a value proposition is to identify and satisfy an unmet need that your target market possesses

Value Proposition
Value proposition can focus on broadly three areas of benefit:
Product feature Emotion Association

Value Propositions
Scorpio, Mahindra and Mahindra
A vehicle that provides the luxury and comfort of a car, and the adventure and thrills of an SUV

Dominos
A good hot pizza, delivered to your door within 30 minutes of ordering, at a moderate price

Some great brands

Archies The most special way to say you care Single idea CARE BMW Sheer Driving Pleasure Single idea GREAT DRIVING EXPERIENCE Dominos Pizza 30 minute delivery Single idea QUICK, ON TIME DELIVERY Lifebuoy Tandurusti ki raksha Single idea HEALTH Exceptions can be a double benefit positioning: Volvo safest and most durable car
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Positioning questions
Why? For whom?

When?

Against whom?
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Positioning Fundamentals
Description of the targeted consumers Frame of Reference Point of Difference Reasons to believe

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Frame of Reference
Category membership or a specific competitor(based on product features)
Eg: Subway provides fast-food, quick service, convenient locations, low prices Coca-Cola is a soft beverage

Goal-based frame
Eg: Coca-Cola goal being refreshed and sociable

Defining Associations
Points-of-difference Points-of-parity (PODs) (POPs) Attributes or benefits Associations that are consumers strongly not necessarily associate with a brand, unique to the brand positively evaluate, and but may be shared believe they could not find with other brands to the same extent with a competitive brand Sustainable Competitive Advantage

Points of Difference
Functional benefits Eg: Gillette, Indica Emotional benefits Eg: BMW, McDonalds

PROCESSES INVOLVED IN POSITIONING

Gap Analysis
Plotting of various brands on a grid to identify and locate where brands are positioned in the consumers minds.

Identify gaps Example Brand Colgate Total Brand Promise 24-hour Protection Promise was backed by a unique ingredient Triclosan A complete global success

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Perceptual Mapping
Cosmetic Anchor Colgate Gel Close Up Poor Taste Forhans Vicco Colgate Total Good Taste

Colgate

Pepsodent

Medicinal

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Perceptual Mapping
Identifying product weaknesses Concept development & evaluation Tracking consumer perceptions Identifying differences between groups (eg. Users vs non-users)

POSITIONING
Gap Analysis
Create a new definition of an existing dimension

Example Brand Sundrop Brand Promise Healthy oil for Healthy People
Scenario Healthy oil platform was already acquired by Saffola but it said Saffola for the Heart

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Fundamental Positioning Themes

Benefit Positioning distinctive consumer benefit (Functional or emotional)
Eg: LG X-Flow (Attribute), Samsung Bio-fresh (Benefit)

User Positioning Target user as the focal point Competitive Positioning explicit reference to the competitor to help define your brand. - used in crowded markets

Benefit Positioning

User Positioning

Competitive positioning at its bestor worst

Brand Knowledge
Thoughts
Knowledge Images Experiences

Feelings

Beliefs

Brand Identity
The original self of the brand Identity precedes image Image is what comes out after decoding is done of the signals emanating from products, services and communication by target groups

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Identity & Image

Sender Receiver Brand Identity Signals transmitted Other sources of inspiration
Mimicry Opportunism Idealism

Brand Image

Competition and noise

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Decision making Influencers

Internal Influences Motivation Personality Perception Learning Attitudes
Consumer decision making
External Influences Reference Groups Family Social Class

Culture and Sub-culture

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How consumer influences drive marketing decisions

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Consumer Involvement
Consumers involvement with the brand depends on:
Brand distinctiveness Consumer knowledge Beliefs, feelings, attitudes Consumer expectations

Consumer Involvement
Degree of Involvement (High-Low)
Personal Factors (self-image, health, beauty or physical condition) Product Factors (is there perceived risk in purchasing a particular brand or product?) Situational Factors (is the product purchased for personal use or as a gift?)

Marketing Debate
Are brand extensions good or bad? Take a position: 1. Brand extensions can endanger brands. or 2. Brand extensions are an important brand-growth strategy.