Brand

Management

Richard R. Dupree,
President, Proctor and Gamble

Neil
McElroy

Neil McElroy
President,
Proctor and Gamble

Neil McElroy
US Defense
Secretary

Neil McElroy, US Defense Secretary

with President Dwight Eisenhower

Brand as an
Asset

Set of Assets

Awareness

Perceived Quality

Brand Associations

Brand Loyalty

Other Proprietary Assets

Managing Brand Equity

Managing Brand Equity involves investment to

create and enhance these assets

Awareness

Familiarity Liking

Signal of substance Commitment

Awareness Dimensions

Recognition Have you been exposed to the

brand before

Recall : What brands of this product class can

you recall

Top of Mind : The first brand recalled

Dominant Brand : The only brand recalled.

Recognition Salience
High

Graveyard

Strong Brand

Weak Brand

Unutilised
Potential

Recognitio
n
Low

High

Low
Salience

Awareness: How to

Broad Sales Base

Corporate Brands

General Electric

Mitsubishi

Sony

Hewlett - Packard

Brand Name Dominance

Xerox

Cellophane

Polaroid

Scotch

Teflon

Nylon

Escalator

Aspirin

Kleenex

Jeep

Wind surfer

Protecting the name

Xerox Generic Product Copier

Wind surfer Generic Product Sail Board

Jeep Registered Trademarking Chrysler

Operate outside normal

media channels

Event Promotions

Sponsorships

Publicity

Sampling

Brand Associations

Image

Positioning

Personality

Brand Loyalty

Customer Life time value

Repeat purchase

Upsell / Cross Sell

Brand Loyalty

Brand loyalty is a key consideration when

placing a value on a brand

Impact on Marketing Costs

Barrier to entry of Competitors

Value of existing customers must be estimated

Increasing Loyalty by 5% increased profitability

30% to 85%

Perceived Quality

Reason to buy

Differentiation / Position

Channel Member Interest

Extensions

Perceived Quality

Single most important contributor to ROI

More than Market Share, R&D Expenditure,

Market Expenditure

Improve Perceived Quality, ROI will improve

University of Michigan study of 77 firms showed

Perceived Quality is the major driver of
Customer Satisfaction which impacts ROI.

Perceived Quality

In a study 250 Business managers were asked to

Identify Sustainable Competitive advantages of
their firms

178 identified Perceived Quality

Perceived Quality

Key Positioning dimension of several companies

IBM

Sony

Toyota

Food

Kraft

Measure of Brand
Goodness"

When Perceived Quality improves

Perceptions of other dimensions improve

Functional Benefits perceived to be better if

Perceived Quality is high.

Creating Perceptions of
Quality

Real Quality

Overcoming previous perceptions

Relevant Quality Dimensions

Relevant Quality Standards

Creating Perceptions of
Quality

Customers Education

Quality Cues: Things consumers do to Test

Quality

Kicking tires to check sturdiness

The click of a pen cap when closing

The thump of car door closing

The sound of the engine of a car

Why is it hard to build

brands?

Pressure to compete on Price

Competition limits Positioning options

Fragmented Media and Markets

Multiple Brands and Relationships

Bias in favour of changing even a good

functioning strategy

Bias against innovation

Pressure to invest elsewhere

Pressure for short term results.

Brand as a
Conditional
Asset

The Product Carries the

Brand: The Brand must be
within

A Branded Product should not lose its value the

moment the label is removed

An unbranded product should not become more

valuable merely by putting a label

A brand is more than a label It represents the

values of the organisation.

Transforming a Product
Category

The Product carrying a brand is different from

the Generic Product

Danone is not another Yogurt

BMW is not another car

Dove is not another soap

Gillette is not another razor

iPhone is not another phone

Harley Davidson is not another bike

Disneyland is not another theme park

Making the Invisible

Visible

Some attributes are not visible

The quality of a car

The purity of drinking water

The brand makes these invisible attributes

more visible

Making the non existent visible is not the sole

purpose of Branding

What will the market lack

if we did not exist

The Brand must occupy a unique place in the

real as well as psychological category frame of
reference

The Brand Vision

Not a Tagline, a Slogan, an Advertising Copy

An articulation of what the brand stands for

reflected in everything the company does

Brand Territory

The Brand Vision translates into the four or five

most important features

These four or five features define whether an

offering falls within the Brand Territory

If it does not, it should not carry the Brand name

Staying Ahead
Permanently nurturing Differences

A Snapshot of a product category may show

several identical offerings

A dynamic view of the category reveals who

created an innovative product and also copied it

Markets reward innovator brands

A brand that is consistently ahead of the curve

innovating with new to the market offerings
and products become a powerful brand

Brand Identity

A brand Identity provides direction, purpose and

meaning to the brand

Unique set of Brand Associations

Represents what a brand stands for

Implies a promise to customers

Brand Identity

Helps establish a relationship between the

brand the customer

Creates a Value Proposition involving

Functional Benefits

Emotional Benefits

Self Expressive Benefits

Building
Brand
Identity

Brand Identity
Perspectives

Brand as Product

Brand as Organisation

Brand as Person

Brand as Symbol

Brand as Product

Product Scope

Product Attributes

Quality/Value

Uses

Users

Country of Origin.

Brand as Organisation

Organisational Attributes

Organisational Values/History/Heritage/Scale.

Brand as Person

Brand Personality

Brand Customer Relationships.

Brand as Symbol

Visual Imagery

Brand Heritage.

Brand Identity Structure

Core Identity : Central Timeless essence of the

Brand Remains constant as the brand travels
to new products and markets

Extended Identity : Brand Identity elements

organised into cohesive and meaningful
groupings Provides texture and completeness

Brand Identity Traps

The Brand Image Trap

The Brand Position Trap

External Perspective Trap

Product Attribute Fixation Trap

Brand Image Trap

The Brand Image is how customers and others

perceive the brand

Brand Image is derived from Brand Identity

Brand Identity is NOT derived from Brand Image

Brand Identity is not what customers say they

want or think of the Brand

Brand Identity is the Soul and Vision of the

brand What it hopes to achieve

Brand Image Trap

Brand Image looks to the Past

Brand Identity looks to the future It is aspirational

Brand Image is Tactical Brand Identity is strategic

Brand Identity includes the Brand's enduring qualities

Brand Identity is to Brand Strategy is What Strategic

Intent is to Business Strategy

The Brand Position Trap

Brand Position is a part of Brand Identity and

Value Proposition

It is actively communicated to Target Audience

Demonstrates an advantage over competing

brands

The Brand Position Trap

Brand Position guides the current

communication program

It is distinct from the general brand identity

construct

Quality, Luxury, Performance are a part of

Volvos Identity but not position

The Brand Position Trap

Cleanliness and Value are part of Mc Donalds

identity but not its position

Ubiquitiousness, Quality, American/ Global taste are

part of Coca Colas identity but not its position is
Open Happiness

The Brand Position Trap

The Search for Identity should not become the

search for a Tagline

The Brand Position trap restricts the formation

of a full fledged brand identity

Brand Identity involves Brand Personality,

Organisational Associations, Brand Symbols

It goes beyond a three word phrase

The Brand Position does not say which events

should be sponsored, which package is
superior, how should the product be displayed
in the store

The External Perspective

Trap

Western Brand Strategists think of brand

identity as something that gets customers buy
their products

Brand Identity is what customers think of the

brand The orientation is entirely external

The External Perspective

Trap

Brand Identity has an Internal Perspective

It helps marketers of the Organisation

understand what it stands for Its Purpose and
Values

Employees cannot make a vision happen if they

do not buy into it and view it merely as a
marketing ploy

Can Employees answer the question What

does a brand stand for?

The Product Attribute

Fixation Trap

Brand Strategists are focussed on product

attributes

The assumption is that customers make

decisions based on features of the product

The Product Attribute

Fixation Trap

A professional Craftsmen buys the best hand

tools he can get

The features are important

But more important is his aspiration to be the

best he can be

The Hand tools brand therefore must not focus

on the features alone but build associations
with the best

The Brand is more than

the Product
Product Associations

Crest : Dental Care

Volvo : Safety

Subaru : Made for all terrain (AWD)

Kraft : Quality Foods

The Brand is more than

the Product

Charlie : Charlie Woman

Audi : Country of Origin Germany

3 M : Innovative Organisation

Wells Forgo : Stage Coach Visual

Marlboro : Marlboro Man

Singapore Airlines : Singapore Girl

Rolex : Self expression / Achievement

Product Attribute
Research

Consumer Research is often based on Attributes

It is easy to design, easier to respond to

It takes attention away from deeper brand

meanings

Limitations of the ProductAttribute Based Identities

Failure to Differentiate

Easy to copy

Assume a rational character

Limit Brand Extension Strategies

Reduce Strategic Flexibility

End of
Section