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BRAND MANAGEMENT

What is branded?
 Physical goods
 Services
 Retailers and distributors
 Online products and services
 People and organizations
 Sports, arts, and entertainment
 Geographic locations
 Ideas and causes
Branding Challenges and Opportunities

 Savvy customers
 Brand proliferation
 Media fragmentation
 Increased competition
 Increased costs
 Greater accountability
Strategic Brand Management
 It involves the design and implementation of
marketing programs and activities to build,
measure, and manage brand equity.
 The Strategic Brand Management Process is defined as
involving four main steps:
1. Identifying and establishing brand positioning and values
2. Planning and implementing brand marketing programs
3. Measuring and interpreting brand performance
4. Growing and sustaining brand equity
Strategic Brand Management Process

Steps Key Concepts


Mental maps
Identify and establish Competitive frame of reference
brand positioning and values Points-of-parity and points-of-difference
Core brand values
Brand mantra

Plan and implement Mixing and matching of brand elements


brand marketing programs Integrating brand marketing activities
Leveraging of secondary associations

Brand value chain


Measure and interpret Brand audits
brand performance Brand tracking
Brand equity management system

Brand-product matrix
Grow and sustain Brand portfolios and hierarchies
brand equity Brand expansion strategies
Brand reinforcement and revitalization
BRAND
A brand may be a name ,symbol, sign,
design, logo, term that distinguishes
the offering of one marketer from
other offerings available in the
market.
AMERICAN
MARKETING
ASSOCIATION :
Brand is a name ,design ,sign ,term ,symbol or a
combination of all of them intended to identify the
goods or services of one seller or group of sellers
and to differentiate them from those of competitors.
 Thus , Brand means creating a reference vis a
vis certain product in the minds of customers.
 Brand is creating space in the minds of people
for a product .
6 LEVEL MEANING OF
BRAND
 Attributes:
A brand brings to mind certain attribute.
Ex. Mercedes –expensive, well built, prestigious ,durable
 Benefits :
Attributes must be translated into functional and
emotional benefits.
Mercedes- expensive --makes the owner feel
important and admired----emotional benefit .
 Culture :
Mercedes ---German culture –
organized ,efficient ,high quality.
 Personality:
Brand always tells about the personality of the user .
Mercedes ----domineering, sincere .
 User :
Brand reveals about the user also.
Mercedes ---wealthy ,middle aged user.
 Values:
Brand always hints about the values of the
marketer.
Mercedes—high performance ,safety, prestige.
Brand image
Brand image is a symbolic construct created within
the minds of people and consists of all the
information and expectations associated with a
product or service
ADVANTAGES OF BRAND TO
THE FIRM
 Legal protection of unique product features
or Trademarks.
 Protection from competition.
 Segmentation of market
 Strong brands leads to strong corporate image
thus makes it easier to launch new products.
 Higher Profits
 Entry barrier for rivals.
 Ease of handling environment turbulence:
Insulates the Brand from economic cycles, since
a successful brand immediately reduces the
impact of the price alone on demand.
BRANDING CHALLENGES

Branding Brand Brand Brand Brand


Decision sponsor Name strategy repositi
Decision decision decision oning
decision
•Brand •Manufacturer’s •Individual •Line •repositi
brand names extension oning
•No Brand
•Private brand •Blanket • Brand •no
Family extension repositi -
•Licensed brand names •Multi brands oning
•Separate •New brands
Family
•cobrand
names
Branding decisions
 Branding
 “No Brand” Branding
“No-brand" branding

 Recently a number of companies have successfully


pursued "No-Brand" strategies, example-- Japanese
company MUJI( which means "No label" in English) .
Although there is a distinct Muji brand, Muji products
are not branded.
 Muji's success is attributed to the word-of-mouth, a
simple shopping experience and the anti-brand
movement
 Generic products in Pharmaceutical market
 This no-brand strategy means that little is spent
on advertisement or classical marketing.
 Low quality ingredients ,lower cost labeling &
packaging ,minimal advertising.
BRAND SPONSOR
DECISION
 MANUFACTURER BRAND ( national brands)
In common practice where a manufacturer markets a
good or family of goods under its own brand name.
The objective is to attract and retain satisfied-customers
whose loyalty may be transferred to the manufacturer's
other products.
ex—Blowplast industries –VIP
LICENSED BRAND

Ex-- Page industries ltd –


Sole licensed manufacturers of the jockey brand
in India .
DISTRIBUTORS BRAND
(PRIVATE BRAND)
 Private branding is when a larger distribution
channel member (usually a retailer), buys from a
manufacturer in bulk and puts its own name on
the product.
This strategy is only practical when the retailer
does very high levels of volume.
The advantages to the retailer from
private branding

 more freedom and flexibility in pricing


 more control over product attributes and quality
 higher margins (or lower selling price)
 eliminates much of the manufacturer's
promotional costs .
Ex---V Fresh (Vishal Megamart)
The advantages to the manufacturer
from private branding

 reduced promotional costs


 stability of sales volume (at least while the
contract is operative)
BRAND NAME DECISION
 Individual brand name
Surf, Slice

 Family brand name


Voltas, LG, Godrej
Qualities of Brand Name
 Suggestive of product benefit.
Ex Fair & handsome, Rasna
 Suggestive of product quality
like Sunsilk, Dove
 Easy to pronounce
Ex Rin, lux
 Must be distinctive.
Ex Pepsodent
 Should not carry poor meaning in other languages.
Categories of Brand name
 Descriptive names:
A name that describes the product or service for which it is
intended.
ex- Milkmaid, Hamam
 Associative name:
Associative brand names provide the customer with an associated
word for what the product promises to do or be. A name which
alludes to an aspect or benefit of the product or service
ex- Voltas ,Aquafina, Liberty, Dhara, Robin blue
 Freestanding Name:
A name which doesn't have any link with the product or
service but posses a meaning of its own.
ex Kiwi, cherry
 Abstract name:
A name which is totally invented has no meaning of its
own.
ex Onida ,Texla
 Coined Names:
A name which is any how invented & is often
an abbreviation.
Grasim-Gwalior rayon silk mills.
3M-minessota,minning &metals.
Electrolux-Electron and lux
Brand Strategy Decisions
 Line extension
 Brand extension
 Multi- Brands
 New Brands
 cobrands
Four Brand Strategies

Product Category
Existing New

Existing Brand Extension


Line Extension
Brand Name

New Multibrands New Brands


Line Extension:- Line extension consist of
introducing additional items in the same
product category and the same brand name ,
such as New Flavors , Forms , Colors , Added
Ingredients and Package Size.
Example: Dove , Lux , Hajmola
Brand Extension:- A company may use its
existing brand name to launch new products in
other categories.
Example:- BAJAJ
Multi Brands :- A company will often introduce
additional brands in the same product category.
Example:- HUL Soaps flankers brands
New Brands:- When a company launches
product in new category , it may find that none
of its current brand name are appropriate.
Example:- TIMEX
Co Brands:- When two or more well known
brands combined in an offer. Co branding take
variety of forms:-

1) Ingredient Co branding
Example:- COMPAQ Computers
2) Same Company Co Branding:-
Example:- Pepsi and Kurkure
3) Joint Venture Co Branding
Example:-Sony Ericsson
VALUE & ENDORSEMENT
COBRANDING
 Ranbaxy donating 1Re of every strips sale of
SPORIDEX to CRY to support GASH project
in J&K.
 P&G on the sale of every pack of WHISPER
gives 1 Re to National Association for blinds to
aid DRISHTI program
Complimentary Cobranding
 COKE with MCDONALDS
Brand Repositioning:- However well a
brand is currently positioned , the company may
have to reposition it later when facing new
competitors or changing customers preferences.
Example:- 7UP, Lifebouy ,Airtel
BRAND EQUITY
 Brand equity is the added value endowed on the
product and services.
 It is the set of brand assets and liabilities linked
to brand ,its name and symbol, that add to or
subtract from the value provided by a product
or the service to a firm or that firms customers.
Brand Equity
 The differential effect that brand knowledge has on
consumer response to the marketing of that brand.

 If the brand’s name or symbol is changed, some or all


the assets or the liabilities are bound to change .
 Assets or liabilities of the brands can be
categorized into 5 groups:
1. Brand Loyalty
2. Brand (Name) Awareness
3. Perceived quality
4. Brand associations
5. Other proprietary brand assets -patents,
trademarks, channel relations.
Perceived quality

Name Awareness Brand associations

Brand Other
proprietary
loyalty
Brand
Brand Equity
Name assets
Symbol
Provides value to customer Provides value to the firm
by enhancing customer’s: By enhancing:
1. Effeciency &
1.Interpretation/processing effectiveness
of information. of marketing programs
2. Brand loyalty
2. Confidence in the 3. Price/margins
purchase decision.
4. Brand extensions.
3.Usage satisfaction 5. Trade leverage
6. Competitive
Advantage
Brand Awareness
 Brand awareness is the ability of a potential
buyer to recognize or recall that a brand is a
member of a certain product category.
Brand Awareness

 Anchor to which Other


associations can be attached
 Familiarity-liking

 Signal of substance/Commitment

 Consideration set
Perceived Quality

 Reason to buy
 Differentiate/Position
 Price
 Channel member interest
 extension
Brand Association

 Help process/Retrieve information


 Differentiate/position
 Reasons to buy
 Create positive attitude
 extensions
Other Proprietary Brand Asset

 Competitive advantage
 Trademark would reduce the chances of
competitors copying brand name or packaging or
style.
 Patent give special rights to firm & make others to
compete difficult.
 channel relationships can be controlled on the
basis of past performance of a brand.
Reduced
Provides value to
Marketing costs Customers by
Brand Trade leverage
Attracting new customers: Enhancing
loyalty #create awareness
customer’s:
#reassurance
Time to respond to
competitive threat.
1. Interpretation/
processing
Brand Anchor to which Other of information
Aware
associations can be attached
Familiarity-liking 2. Confidence in
ness
Signal of substance
Commitment
purchase
Consideration set decision.
Brand 3. Use
Reason to buy
Equity Perceived Differentiate/Position satisfaction
Price
Quality Channel member interest
extension Provides value to
the firm
Brand By enhancing:
Help process/
Associat Retrieve information 1. Efficiency &
ion Differentiate/position effectiveness
Reasons to buy
Create possitive attitude
of marketing prog.
Other extensions 2. Brand loyalty
Proprietary 3. Price/margins
Brand Competitive 4. Brand extensions.
asset advantage 5. Trade leverage
6. Competitive
DAVID AAKER MODEL OF BRAND EQUITY Advantage
Brand loyalty

 Reduced Marketing costs


Easy to retain old satisfied customers than
bringing new customer into kitty.
 Trade leverage
 Attracting new customers:
# create awareness
# reassurance
 Time to respond to competitive threat.
BRAND LOYALTY PYRAMID

Committed
buyer

Likes the
brand
As a
friend

Satisfied buyer
with switching costs

Satisfied/habitual buyer
no reason to change .

Switchers/price sensitive
Indifferent-No Brand loyalty
Creating & Maintaining Brand
loyalty
 Treat the customer right.
 Stay close to the customer.
 Measure/manage customer satisfaction.
 Create switching costs.
 Provide Extras.
My Coke Rewards
Pepsi Stuff
Vicarious situations under which a
customer switch the brand:
 Non-availability of a product
 Non-conformity with the latest fad/trend
Brand Element
Brand Elements
Brand
names URLs

Slogans
Elements
Logos

Characters
Symbols
Tactics for Brand Elements
 A variety of brand elements can be chosen that inherently
enhance brand awareness or facilitate the formation of
strong, favorable, and unique brand associations.
 Brand names

 URLs

 Logos and symbols

 Characters

 Slogans

 Packaging
Brand Names
 Like any brand element, brand names must
be chosen with the six general criteria of
memorability, meaningfulness, likability,
transferability, adaptability, and protectability
in mind.
Brand Naming Guidelines
 Brand awareness
 Simplicity and ease of pronunciation and spelling
 Familiarity and meaningfulness

 Differentiated, distinctive, and uniqueness

 Brand associations
 The explicit and implicit meanings consumers
extract from it are important. In particular, the brand
name can reinforce an important attribute or benefit
association that makes up its product positioning.
Brand Naming Procedures
 Define objectives
 Generate names
 Screen initial candidates
 Study candidate names
 Research the final candidates
 Select the final name
URLs

 URLs (uniform resource locators) specify


locations of pages on the web and are also
commonly referred to as domain names.
 A company can either sue the current owner of
the URL for copyright infringement, buy the
name from the current owner, or register all
conceivable variations of its brand as domain
names ahead of time.
Logos and Symbols
 Play a critical role in building brand equity and
especially brand awareness
 Logos range from corporate names or
trademarks (word marks with text only) written
in a distinctive form, to entirely abstract designs
that may be completely unrelated to the word
mark, corporate name, or corporate activities
Characters
 A special type of brand symbol—one that takes on
human or real-life characteristics
 Some are animated like Pillsbury’s Poppin’ Fresh
Doughboy, Peter Pan peanut butter’s character, and
numerous cereal characters such as Tony the Tiger,
Cap’n Crunch, and Snap, Crackle & Pop.
 Others are live-action figures like Juan Valdez
(Colombian coffee), the Maytag repairman, and Ronald
McDonald. Notable newcomers include the AOL
running man, the Budweiser frogs, and the AFLAC
duck.
Slogans
 Slogans are short phrases that communicate
descriptive or persuasive information about the
brand.
 Slogans are powerful branding devices because,
like brand names, they are an extremely efficient,
shorthand means to build brand equity
Classic Slogans
 “Melts in your mouth, not in your hands”
(M&M’s)
 “Sometimes you feel like a nut, sometimes you
don’t” (Almond Joy/Mounds)
 “Where’s the beef?” (Wendy’s)
 “A mind is a terrible thing to waste” (United
Negro College Fund)
 “Can you hear me now?” (Verizon)
Source: Monty Phan, “Celebrating Their Sweet Success,” Newsday, 21 September 2004, A43.
Jingles
 Jingles are musical messages written around
the brand. Typically composed by professional
songwriters, they often have enough catchy
hooks and choruses to become almost
permanently registered in the minds of
listeners—sometimes whether they want them
to or not!
 Jingles are perhaps most valuable in enhancing
brand awareness.
Packaging
 From the perspective of both the firm and
consumers, packaging must achieve a number of
objectives:
 Identify the brand
 Convey descriptive and persuasive information

 Facilitate product transportation and protection

 Assist at-home storage

 Aid product consumption

Susan B. Bassin, “Value-Added Packaging Cuts through Store Clutter,”


Marketing News, 26 September 1988, 21.
Packaging Can Influence Taste
 Our sense of taste and touch is very suggestible,
and what we see on a package can lead us to
taste what we think we are going to taste.
Packaging Can Influence Value
 Long after we have bought a product, a
package can still lead us to believe we bought
it because it was a good value.
Packaging Can Influence
Consumption
 Studies of 48 different types of foods and
personal care products have shown that people
pour and consume between 18% and 32% more
of a product as the size of the container doubles.

Valerie Folkes, Ingrid Martin and Kamal Gupta,


“When to Say When: Effects of Supply on Usage,”
Journal of Consumer Research, 20 December 1993, 467-477.
Packaging Can Influence How a
Person Uses a Product
 One strategy to increase use of mature products
has been to encourage people to use the brand
in new situations, like soup for breakfast, or new
uses, like baking soda as a refrigerator
deodorizer.
 An analysis of 26 products and 402 consumers
showed that twice as many people learned about
the new use from the package than from
television ads.
Putting It All Together
 The entire set of brand elements makes up the
brand identity, the contribution of all brand
elements leads to awareness and image.
 The cohesiveness of the brand identity depends
on the extent to which the brand elements are
consistent.
Building
Customer-Based Brand Equity
 Brand knowledge structures depend on:
 The initial choices for the brand elements
 The supporting marketing program and the manner
by which the brand is integrated into it
 Other associations indirectly transferred to the brand
by linking it to some other entities
Criteria for Choosing Brand Elements

 Memorability
Marketer’s offensive strategy
 Meaningfulness and build brand equity
 Likability
 Transferability
 Adaptability Defensive role for leveraging
and maintaining brand equity
 Protect ability
Visuals Of Brand elements
Memorability
 Brand elements should inherently be memorable
and attention-getting, and therefore facilitate
recall or recognition.
 For example, a brand of propane gas cylinders
named Blue Rhino featuring a powder-blue
animal mascot with a distinctive yellow flame is
likely to stick in the minds of consumers.
Easily Recognized
 Memorability Easily Recalled

 Meaningfulness
 Likability
 Transferability
 Adaptability
 Protectability
Meaningfulness
 Brand elements may take on all kinds of meaning, with
either descriptive or persuasive content.
 Two particularly important criteria
 General information about the nature of the product category
 Specific information about particular attributes and benefits
of the brand
 The first dimension is an important determinant of
brand awareness and salience; the second, of brand
image and positioning.
Meaningful
 Memorability
Descriptive
 Meaningfulness Specific
 Likeability
 Transferability
 Adaptability
 Protectability
Likability
 Do customers find the brand element
aesthetically appealing?
 Descriptive and persuasive elements reduce the
burden on marketing communications to build
awareness.
Likeability
 Memorability
Fun and Interesting
 Meaningfulness Rich Visual and Verbal imagery

 Likeability Aesthetically pleasing


 Transferability
 Adaptability
 Protectability
Transferability
 How useful is the brand element for line or
category extensions?
 To what extent does the brand element add to
brand equity across geographic boundaries and
market segments?
Transferability
 Memorability
 Meaningfulness
•Within and across product categories
 Likeability •Across geographical Boundaries and
cultures
 Transferability
 Adaptability
 Protectability
Adaptability
 The more adaptable and flexible the brand
element, the easier it is to update it to changes in
consumer values and opinions.
 For example, logos and characters can be given
a new look or a new design to make them
appear more modern and relevant.
Adaptability
 Memorability
 Meaningfulness •Flexible
 Likability •Updateable
 Transferability
 Adaptability
 Protectability
Protectability
 Marketers should:
1. Choose brand elements that can be legally
protected internationally.
2. Formally register chosen brand elements with the
appropriate legal bodies.
3. Vigorously defend trademarks from unauthorized
competitive infringement.
Criteria for choosing Brand
Elements
•Legally
 Memorability
•Competitively
 Meaningfulness
 Likeability
 Transferability
 Adaptability
 Protectability
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