Module 2 Building a brand From Scratch

Dr Tripti Dhote

 Great brands are no accidents. They are a result of thoughtful and imaginative planning. Anyone building or managing a brand must carefully develop and implement creative brand strategies. - Kevin Lane Keller!!!

 What Are powerful Brands?????

Power Brands.
A distinctive product Delivering brand promise Personality and presence

Power Brands
Emotional bond with the customer Generates relationships measurably stronger than ordinary brands

Power Brands.
Generates enormous profits Expands future strategic opportunities

Presence.
Seem to be present everywhere, enforcing distinctiveness National/international scale Successful brand extensions Multiple concept and channels

So Powerful Brands..
Powerful brands create meaningful images in the minds of consumers (Keller, 1993) With brand image and reputation enhancing differentiation and thus potentially having a positive influence on buying behavior (Gordon, Calantone and di Benedetto, 1993; McEnally and de Chernatony, 1999). Branding in consumer markets has been shown to increase a companys financial performance and long term competitive position (Mudambi, 2002).

Measuring, developing and implementing marketing programs can be very complicated. It is important for managers to consider the impact of their marketing decisions on brand value. .

What is Brand Building?

Involves all the activities that are necessary to nurture a brand into a healthy cash flow stream for the company after launch
For me, it's all about having a story to tell. This is what will enable you to create an experience around the brand.

Starbucks CEO Howard Schultz

Three models of branding

1) Brand Positioning: Describes how to guide integrated marketing to maximize competitive advantages. 2) Brand Resonance: Describes how to create intense, actively loyal relationships with customers. 3) Brand Value Chain: Describes how to trace the value creation process to better understand the financial impact of marketing expenditures and investments

Brand Positioning
Positioning is the act of designing the companys offering and image to occupy a distinctive place in the minds of the target market. The goal is to locate the brand in the minds of consumers to maximize the potential benefits to the firm. Brand positioning is crucial because it drives so many marketing decisions. A good brand positioning helps guide marketing strategy by clarifying the brands essence, what goals it helps the consumer achieve, and how it does so in a unique way.

Situating the product within existing frame of reference

Garments Food Items Cosmetics Footwear Detergents Handsets

Laptops Service providers

Consumer durables Automobiles

 Customer focused value proposition (positioning outcome) Positioning requires that similarities and differences between brands to be defined and communicated.

Why target market should buy the product?(convincing logic) Determining a frame of reference by identifying TM and competition. Identifying the ideal PODs POPs for BA.

Brand, TC, Benefits & VP

Spacious small car no extra cost

Luxury and comfort

------------

How?????

Value for Money

4 key components of Superior Positioning

A competitive frame of reference in terms of the target market and nature of competition The points-of-difference in terms of strong, favorable, and unique brand associations The points-of-parity in terms of brand association that negate any existing or potential points - of- difference by competitors A brand mantra that summarizes the essence of the brand and key points-of-difference in 3-5 words.

Superior Competitive Positioning

1). a competitive frame of reference Category membershipproducts or set of products with which a brand competes & close substitutes. The competitive frame of reference defines the associations that consumers use to evaluate POP & POD. Determining competitors FOR calls for understanding Consumer behavior & consideration sets customers use to make brand choices.

Points of Difference POD- Attributes/ benefits that consumers strongly associate with a brand (in terms of strong, favorable, and unique brand associations) which they positively evaluate and believe cannot be found in competitor brands Clear Superiority ( Hi design, GUCCI, Versace)

Points of Parity Associations that may not essentially be unique to the brand & may even be shared with other brands. 2 types Category POP necessary but not sufficient conditions for brand choice Competitive POPassociations designed to negate competitors POD.

The brand association must be seen as personally relevant to consumers

Automobile market Volvo (safety), Toyota (quality and dependability), and Mercedes-Benz (quality and prestige). Creating brand associations that are strong, favorable, and unique that can become pointsof-difference is a real challenge, but essential in terms of competitive Positioning.
Believable and credible. Deliverable by the company. The company must have the internal resources and commitment to be able to actually feasibly and profitably create and maintain the brand association in the minds of consumers. Ideally, the brand association should be pre-emptive, defensible, and difficult to attack. Differentiating from competitors. Finally, the brand association must be seen by consumers as distinctive and superior compared to relevant competitors.

POD Vs POP
Availability Convenience Exclusivity, Prestige

Its everywhere you want to Be

More no of merchants accepting the card

Market Mantra.

Customers are perceptive about the messages that brands are giving them. Any inconsistency in the marketing mix arouses doubts.

Google !!!!

Google is thriving because it continued to create relevant apps around its search engine instead of just isolating itself to the core business.

Positioning Pitfalls
Over positioning Under positioning Ambiguous/ Vague/ Indistinct Promising irrelevant benefits Promise should be credible

 Points of parity: Points of parity are the shared values between the target brand and its competitors. These values are the common denominators that define the category. Points of parity can be leveraged to negate competitors POD

NIKE vs Reebok vs Adidas

This mental map shows the range of associations for Nike. Some associations are product specific while others are not. Brands typically may have many associations, but only three to five are the primary drivers of brand equity. Core associations for Nike include: innovative technology, high quality/stylish products, joy and celebration of sports, maximum performance, self empowerment . inspiring, locally and regionally involved, and globally responsible. When compared to Reebok, comfort and stylishness are points of parity while technology and empowerment are points of difference. Compared to Adidas, performance and quality are points of parity while technology and empowerment are points of difference

From a commodity to a brand..

In 1971, Perdue Farm embarked on its first major advertising campaign and had contracted the firm of Scali, McCabe Scoves The firm came up with the idea of putting Perdue on television himself, with the tag line, "It takes a tough man to make a tender chicken
It takes a tough man to tender chicken

Perdue's Model
It was so successful that he went on to appear in over 200 of Perdue Farms' television commercials, although he was also known for his shyness as well. Much of the commercials were known for Perdue actually encouraging people to voice any complaints or dissatisfaction with Perdue products, usually ending with Perdue stating "Say whatever you have to say; I can take it". Through this advertising, Perdue is credited with creating the first Frank Perdue's promotion of the Perdue brand brand for chicken.
through high-profile advertising resulted in its being the first well-known brand of chicken in the U.S

This was fairly radical because at the time, CEOs were not usually public spokespersons for their firms. The first commercial, shot in the city park in Salisbury, was ranked by Advertising Age as one of the best campaigns of the year.

Perdues Model of Brand Building

Frank Perdues perceived quality scale Model is based on building a brand out of a commodity. Perdue proved by creating branded chicken out of commodity chicken in U.S.A. According to Perdue the value of a particular brand is defined Value = Quality Price =

Tangible Qlty + Intangible qlty Price = Product Qlty +Service qlty Price

Brand Equity Illustration : Perdue's model

awareness

Brand

Perceived Quality

Brand Equity

Proprietary Brand assets like regd trademarks, patents, logos etc.

Loyalty
Price premium

Steps to create a brand out of an existing commodity

Step 1: Conduct an attribute research Step 2: Find out the current benefits of the commodity that the customers are availing. Step 3: Estimate the gap between what is desired and what if offered in each of the attribute parameter.

Step 4: Research and development to bridge the gaps Step 5: Evaluate the perceived quality and performance by giving samples for feedback relative to the commodity. Step 6: Evaluate a suitable price which gives the customers value for money.

Brand Value

Impact

Filters

Investment in the Marketing

The first line shows the 4 stages of the brand value chain. The second line shows multipliers, or filters, between these stages. These multipliers are factors that influence the impact of one stage on the subsequent stage. First, brands must invest in the marketing program in such areas as the Product, Employees, or advertising. All of these factors affect brand value in the future. Program quality factors such as distinctiveness of commercials or consistency of service determine how much the first stage influences the second stage, customer mindset.

Customer Mindset
Customer mindset includes the 5 As: awareness, associations, attitudes, attachment, and activity. These dimensions are hierarchical in nature so that awareness supports consumers ability to make brand associations. associations, in turn, drive attitudes which can lead to attachment and ultimately activity. Translation of the 5 As to brand value depends on multipliers related to marketplace conditions such as competitive reactions and support from channels or intermediaries Customer size.

Shareholder value
The final stage of the brand value chain is shareholder value. Measurements in this stage include Stock price, price/earnings ratios, and market capitalization. Taken together, these stages allow managers to evaluate the value of their brand and can suggest where improvements can be made

Market Performance
This is the stage where brand performance can be measured in the marketplace. Price premiums and price elasticity demonstrate the brands ability to charge a premium, Market share demonstrates the brands ability to drive sales, expansion success is the brands opportunity to increase revenue streams, and cost savings are possible if the consumers 'knowledge is strong enough that marketing expenditures can be decreased while maintaining the same effectiveness . Finally, the first 5 factors determine a brands ability to have profitable sales. These factors ultimately lead to shareholder value, but only after investor sentiment is included in the calculation. Market forces such as growth potential and risk profile can affect the ultimate evaluation.

Starbucks Transformed Coffee From A Commodity Into A $4 Spree

A brand is an entity that engenders an emotional connection with a consumer. Consumers emotionally connect with brands when the brands repeatedly provide something that the consumer wants, desires, or needs.
"No one is going to pick up your product and try it if they don't want to buy into the experience. Stanley Hainsworth- VP global creative

 The concept of a person not knowing that they need something is a fascinating one. Clearly, there were millions of coffee shops all over the world before Starbucks launched its particular brand of coffee shop
when people are surprised or delighted by how a brand can change their lives by just making it a little bit better--or a little bit more fun or a little more performance-oriented--that's when they start creating a connection with that brand.

 Every brand has a story, whether it's the founder's story or the brand's reason for being. Some brands have never told their story well, or have lost their story. Microsoft is a good example of a brand that's never told its story well. It's a huge consumer product software platform, a mega conglomerate, and there's no love there. There's no emotional story to rally around. The Bill Gates story is such an incredible story, but it's never really been expressed by the brand.

Brand Development
The first stage of brand development is identity. At this stage, consumers are just beginning to understand what the brand is. Salience refers to how easily or often a consumer thinks of the brand, especially at the right place and right time. 2nd stage - meaning. consumers begin to understand points of difference and points of parity such as performance and reliability.

Brand Development
3rd stage - response, which is where consumers judge the brand with their heads and hearts. Consumers judge factors such as credibility, expertise, and trustworthiness. Feelings at this stage can be divided into two categories: experiential and enduring. Warmth, fun, and excitement are experiential feelings. They are more immediate and short-lived than enduring feelings

Enduring feelings, such as security, social approval, and self-respect, are private and potentially part of day-to-day life. The final stage is resonance, or intense, active loyalty. This is where customers feel a connection or sense of community with the brand and they would miss it if it went away.

Brand Building Process

3 principles in managing brands.

First, brand building is a considered process that entails making the right investments at the right time. Second, what those investments are and when they should be made will be partly determined by industry forces. Third, whatever the industry, brand building calls for major marketing muscle.

Building a Brand
When You are building a brand.
Superior insight into customer needs Ability to devise product/services that powerfully meet those needs Agility to redefine its offering as those needs change Creativity to produce exciting and compelling advertising

Tangibles
Shape Color Size Models Price Features Benefits

Intangibles
Company name Brand name Slogan and its underlying associations Perceived quality Brand awareness
Customer base Trademarks and patents Channel relationships Customer loyalty Customer confidence Competitive advantage

When creating a brand

Choosing a brand Name Developing rich associations and promises Manage customer brand contacts to meet and exceed customer expectations

Porters.. Approach
Product differentiator Low cost leader Nicher

 What are Brand Elements.

Selecting a Brand Name

Product benefits Product quality Descriptive brand names Be easy to pronounce/remember/ recognize/ simplicity Be distinctive/ Unique/ Differentiated Simplicity and ease of pronunciation and spelling Familiarity and meaningfulness Not have poor meanings in other countries or languages

Brand associations..
Logos & symbols Slogans
'the world's local bank',

Packaging Characters

What are brand ambassadors

These are used to create the Brand personality, just like a human being. Therefore in some way the values and personality of the ambassador rubs off into the brand. Hence the brand and choice of the ambassador must fit.

Brand Status
Step up advertising
Esteem

Cash cow. Need to sustain brand building activities Troubled brand. Product up gradation required

Product should be phased out

Familiarity

Sub dimensions of BB Model

Loyalty Attachment Community Engagement Warmth Fun Excitement Security, social approval, self respect User profiles Personality & usage situations Personality & values History, heritage & experiences

Quality credibility Consideration superiority Primary characteristics Product features Product reliability Durability & serviceability Service effectiveness Efficiency & empathy Style, design & price

Category identification Need satisfied

Sub dimensions of BB Model

Loyalty Attachment Community Engagement Warmth Fun Excitement Security, social approval, self respect User profiles Personality & usage situations Personality & values History, heritage & experiences

Quality credibility Consideration superiority Primary characteristics Product features Product reliability Durability & serviceability Service effectiveness Efficiency & empathy Style, design & price

Category identification Need satisfied

Sub dimensions of BB Model

Loyalty Attachment Community Engagement Warmth Fun Excitement Security, social approval, self respect User profiles Personality & usage situations Personality & values History, heritage & experiences

Quality credibility Consideration superiority Primary characteristics Product features Product reliability Durability & serviceability Service effectiveness Efficiency & empathy Style, design & price

Category identification Need satisfied