Strategic Brand Management

Chapter 1

What is a Brand?
Old Norse word brandr to burn. AMA Name, term, sign, symbol, or design, or a combination of them, intended to identify the goods and services of one seller or group of sellers and to differentiate them from those of the competition. Branding basis people, place, animal or bird, scientific term, and things or objects. Branding contain inherent product meaning, and attributes or benefits. Branding could be done for product (physical good, retail store, person, organization, place, or an idea. Brand = product + other differentiating dimensions

Functions of Brands
To consumers 1. choice the product easier 2. Reduce the cost of the product search 3. Reduce the time for product search 4. Reduce the risk factor in terms of quality, guarantee, resale price, after sales service 5. Add status to buyers .

Functions of Brands
To sellers 1. Cost of sales reduce 2. Reduce advertising and promotions 3. Reduce cost of training of sales staff 4. Can change premium or skimming prices 5. Provide an entry barrier for firms 6. Increasing firms share value.

Provide product differentiati Sell entire product under one name.

Product Levels?
Core benefits fundamental need or want. Generic product basic offering. Expected product set of attributes that buyers normally expect and agree to purchase a product.

Augmented product differentiating and distinguishing attributes, benefits, or related service.

Potential product includes all augmentations and transformations a product undergo in future.

Branding - benefits?
Consumers Identification of source Manufacturers Means of identification for handling or tracing

Assignment of responsibility to product maker

Risk reducer functional, physical, financial, social, psychological, and time

Legal protection for unique features.

Signal of quality to consumers

Search cost reducer Promise, bond with maker of product

Symbolic device Signal of quality

Endowing product with unique association Competitive advantage

Source of financial return

Brands value(2005)
Brand Coca-cola Microsoft IBM GE Intel Nokia Disney McDonalds Toyota Value(in billions) $67.5 59.9 53.4 47 35.6 26.5 26.4 26 24.8

Branding is Universal (anything can be branded)

Commodity Chicken, Coffee, salt, fruits, vegetables, water, etc. Physical good - Consumer products; Business to Business; Hightech products.

Services Citi, Airlines, Energy firms, etc. Retailers and distributors Sears, Wal-Mart, private or store
brands.

On-line product and services google, e-bay, etc. People and Organizations Paul Newman.

Sports, Arts, and Entertainment Cowboys?

Geographic Locations Australia, Alaska. Ideas and Causes Red Cross, NRA.

Evolution of Brand Elements, GE

1876-1960s electronics 1900 trademarks logo 1900 slogan Better Living Electronically 1960s General Electric -> GE 1970s slogan Progress for People 1979 slogan We Bring Good Things to Life

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Branding Challenges
Savvy consumers - more experienced with marketing and more knowledgeable about how it works and more demanding. Consulting firm brand keys conduct annual survey - consumer expectation more than 13% higher than what they think brand will deliver for them, and the gap is growing.

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Media fragmentation- erosion of traditional and emergence of interactive media , promotion and other communication alternatives. Cost- risen Length - 10-15 sec rather than the traditional 30-60 sec Fragmentation- growth of independent stations and cable channels (91%197550%by2005) Technology use of remote control, channel surfing

Increased competition Globalization Low-priced competitors Brand extension

Increased costs By 2000, an estimated 30000new products were introduced to markets , a failure rate estimated around 93%. Total failure cost was estimated by one group exceed $20 billion.

Brand proliferation- a brand name may now be identified with a number of different products with varying degrees. Eg- coca cola brand, Nivea, Dove.

Greater accountability.

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Brand Management

Brand management is the act of designing and implementing marketing programs to build and maintain brand equity.

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Brand Equity is the value and strength of the Brand that decides its worth. The concept of Brand Equity comes into existence when consumer makes a choice of a product or a service.

Brand Management

Brand management includes managing the tangible and intangible characteristics of brand.

Tangible product, price,packing Intangible emotional connections

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The process of maintaining, improving, and upholding a brand so that the name is associated with positive results. Brand management involves a number of important aspects such as cost, customer satisfaction, instore presentation, and competition. Brand management is built on a marketing foundation, but focuses directly on the brand and how that brand can remain favorable to customers. Proper brand management can result in higher sales of not only one product, but on other products associated with that brand. For example, if a customer loves Pillsbury biscuits and trust the brand, he or she is more likely to try other products offered by the company such as chocolate chip cookies.

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Strategic Brand Management Process:

1.

Identifying and Establishing brand position and values.

2.

Planning and Implementing brand marketing programs.

3. 4.

Measuring and interpreting brand performance. Growing and sustaining brand equity.

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Identifying and establishing brand positioning and values:

The Strategic brand management process starts with a clear understanding as to what the brand is to represent and how it should be positioned with respect to competitors. Positioning convince POD Positioning often involves a specification of the appropriate core brand values and brand mantra. Core brand values are those set of abstract associations (attributes and benefits) that characterize a brand.

Brand mantra brand essence A brand mantra is a short three to five word expression of the most important aspects of a brand and its core brand values

Zee Cinema Movies Masti Magic Disney Fun Family Entertainment

Planning and Implementing Brand Marketing Programs

Building brand equity requires creating a brand that consumers are sufficiently aware of and with which they have strong, favorable and unique brand associations..

In general, this knowledge-building process will depend on three factors: 1. The initial choices for the brand elements or identities making up the brand. 2. The marketing activities and supporting marketing program and the manner by which the brand is integrated into them. 3. Other association indirectly transferred to the brand by linking it to some other entity (e.g., the company, country of origin, channel of distribution or another brand.

Choosing Brand elements: Brand names, logos, symbols, characters, packaging and slogans. Integrating the brand into Marketing Activities and the Supporting Marketing Program.- American express has maximized value by sponsoring US OpenTournament. Leveraging Secondary Associationscountry- south african airways Hunt wesson foods- company

Measuring and Interpreting Brand Performance:

Brand audit comprehensive examination of brand . A useful tool in that regard is the brand value chain. The brand value chain is a means to trace the value creation process for brands to better understand the financial impact of brand marketing expenditures and investments.

A brand equity measurement system is a set of research procedures designed to provide timely, accurate and actionable information for marketers so that they can make the best possible tactical decisions in the short run and the best strategic decisions in the long run.

Growing and Sustaining Brand Equity:

Defining the Branding Strategy: Define Brand Hierarchy, Define Brand-Product Matrix, Managing Brand Equity over time, Managing Brand Equity over Market Segments.

management requires taking a long-term view of marketing decisions. Because consumers responses to marketing activity depend on what they know and remember about a brand, short-term marketing activity depend on what they know and remember about a brand, shortterm marketing mix actions, by changing brand knowledge, necessarily increase or decrease the success of future marketing actions.