Strategic Brand Management

The 1980s marked a turning point in how brands began to be viewed. Real value lies outside the business itself Since 1991, buzz word is brand equity. Companies now bought not production capacity but brands (places in consumers minds). There were 26 different ways to measure brand equity in 1994. Ratio of 20:25 times of price: earnings ratio.

Implications of strategic brand management

Top management is now paying close attention to brands . Brands are being treated as strategic assets,as realisation that Brand bldg leads to Business Bldg

New way of thinking (in terms of capitalizing) means umbrella/ source /master brands.
End of dispersion &proliferation Reducing the brand portfolio means fewer brands encompass more products e.g. in 1991 Nestle launched 101 new products worldwide but created only 5 new brands. Managing innovation allocation - Marketing manager & not brand managers decide innovation. Identity prevails over imageBrand image is how you are perceived & brand identity is how you aspire to be perceived. Exploiting brand equity leveraging. Reducing a brand to only one product means shrinking brand equity Brand equity vs price war.New rules of Brand Mgt-seduce customers through shared values,innovations Addressing diversity of consumers and geographical mkts Identity vs change From transaction to relationships through functional,experiential and aspirational values Knowing it takes more than Brand name to build a Brand

What is a product

A product is anything that is offered to a market to satisfy a want or a need. Products include physical goods, services, experiences, events, persons, places, properties, organizations, information and ideas .
CORE BENEFIT BASIC PRODUCT - FEATURES, BENEFITS, DESIGN & STYLE, PACKAGING, BRAND NAME. EXPECTED PRODUCT - CREATES NO PREFERENCE AUGMENTED PRODUCT - TOTAL CONSUMPTION SYSTEM POTENTIAL PRODUCT THE 5 LEVELS CONSTITUTE CUSTOMER VALUE HIERARCHY WITH EACH LEVEL ADDING MORE CUSTOMER VALUE.

BRAND

A BRAND IS ESSENTIALLY A SELLERS PROMISE TO CONSISTENTLY DELIVER A SPECIFIC SET OF FEATURES, BENEFITS ,SERVICES AND VALUES TO BUYERS.A BRAND IS ABOUT INTANGIBLE AND TANGIBLE ASSOCIATIONS

A BRAND IS MORE THAN A PRODUCT

Organizational Associations

Brand Personality

PRODUCT
Features Benefits

Country of Origin

Style
Design Brand name

Symbols

User Imagery

package

Brand-Customer Relationships

Self-Expressive Benefits

Functional benefits

Emotional Benefits

ROLE OF BRAND MANAGER

WHAT THE BRAND MANAGERS JOB ENTAILS

RESPONSIBILITIES IN
MARKETING DEPARTMENT SALES DEPARTMENT PRODUCTION DEPARTMENT / MATERIALS FINANCE DEPARTMENT SENIOR MANAGEMENT

BRAND MANAGERS DUTIES

1. DAILY DUTIES - PRODUCT FACT BOOK, MOTIVATING SALES FORCE
& DISTRIBUTORS, MONITORING COMPETITION.

2.

SHORT-TERM DUTIES - MONITORING CUSTOMER SATISFACTION, IMPROVING CUSTOMER VALUE, ANNUAL PLAN, PRODUCT IMPROVEMENTS ETC.

3.

LONG-TERM DUTIES - MARKET OPPORTUNITIES, COMPETITIVE STRATEGIES

IDEALLY,

DAILY DUTIES - 45 - 55%

SHORT-TERM DUTIES - 20 - 30% LONG-TERM DUTIES - 15 - 25%

COMPARISON OF THE ROLES OF THE PRODUCT MANAGER IN CONSUMER GOODS FIRMS AND INDUSTRIAL GOODS FIRMS ACTIVITY
1. Planning
2. Advertising 3. Sales promotion 4. Merchandising

CONSUMER GOODS COMPANY

Key duty
Creates plan Originates, may manage Recommends policies & plans Makes recommendations Studies and makes recommendations Studies and makes recommendations Recommends changes

Key duty

INDUSTRIAL GOODS COMPANY

Limited role Suggests technical material Limited role Limited role Bid pricing, estimating, volume pricing Works with laboratories and may a approve modifications Recommends and may have authority over mix May do his own research

5. Packaging, branding, labelling

6. Pricing 7. Product development, new products 8. Product line planning 9. Market research

Makes requests for studies

COMPARISON OF THE ROLES OF THE PRODUCT MANAGER IN CONSUMER GOODS FIRMS AND INDUSTRIAL GOODS FIRMS ACTIVITY CONSUMER GOODS COMPANY INDUSTRIAL GOODS COMPANY

10. Production planning

Forecasts sales volume

Establishes mix and schedule

11. Inventories and warehousing

12. Field sales and distribution

Estimates inventory needs Estimates inventory needs Recommends channels of May be primary technical advisor distribution to field

What is a Brand to a consumer ?

Identifier Differentiator Signal of quality Promise of consistent delivery of values Symbol of Trust Risk reducer .No risk, no brand Unique set of benefits & associations

Functions of brand for the consumer

Function Identification Consumer benefit Quickly identify the sought-after products.

Practicality
Guarantee Optimisation Characterisation . Continuity

Savings of time and energy through identical repurchasing.

Surety of same quality no matter where or when you buy the product or service. Surety of buying best product , best performer Confirmation of your self-image Satisfaction brought about through familiarity and intimacy

Hedonistic
Ethical

Satisfaction linked to the attractiveness of the brand, to its logo, to its communication.
Satisfaction linked to the responsible behaviour of the brand in its relationship with society (ecology, employment, citizenship, advertising which doesnt shock).

Brand Concept
Means brand meaning i.e. which is the different types of consumer needs brand intends to satisfy/satisfies Tangible: Functional/ Rational Intangible : Emotional Experiential-sensory pleasure(sight, taste, sound, smell or feel). Symbolic/aspirational-selfconcept,selfenhancement, ego identifier, role position or group membership

BRAND - MEANING

1. ATTRIBUTES 2. BENEFITS 3. VALUES 4. CULTURE 5. PERSONALITY 6. USER

DEEP V/S SHALLOW BRAND

HOW VALUES AFFECT BRAND CHOICE

FUNCTIONAL VALUE

CONDITIONAL VALUE

SOCIAL VALUE

BRAND CHOICE

EMOTIONAL VALUE

EPISTEMIC VALUE

Defining & establishing brand values

1) Core brand values are the set of abstract associations (attributes & benefits) that characterize the 5 to 10 important aspects or dimensions of a brand. Core brand values are identified through mental maps 2) Brand mantra is the heart & soul of brand defined by short 3 to 5 word phrases that capture essence or spirit of brand positioning & brand value clearly delineating what the brand is & what it is not.

Brand Mantra
Brand function Disney Nike Entertainment Performance Descriptive modifier Family Athletic Emotional modifier Fun Authentic

Brand mantras derive their power & usefulness from their collective meaning to employees & consumers.

What does Branding mean to BRAND MANAGER ?

Brands endow products with meaning Branding transforms product categories Brand is a long term vision Brand is a living memory in consumers mind. Brand is a genetic program

Branding is raising new questions for managers

Classic strategic models talk about product portfolios whereas in reality companies have to manage their brand portfolios. Real brand management begins with a strategy & a consistent integrated vision. Its central concept is brand identity.

Underlying the brand is its programme

1. Why must this brand exist?
What would consumers be missing if the brand did not exist? 2. Standpoint. From where does the brand speak? 3. Vision. What is the brands vision of the future? 4. 5. What are our values? Mission. What specific mission does the brand want to carry out in its market? 6. Know-how. What is the brands specific know - how? 7. Territory. Where can the brand legitimately carry out its mission, in which product category? 8. Typical products or actions.

Which products and actions best embody, best exemplify the brands values and vision?
9. Style and language. What are the brands stylistic idiosyncrasies? 10. Reflection. Whom are we addressing? What image do we want to render of the clients themselves?

Challenges facing Brand Builders

Savvy Customers & decreasing brand loyalty Brand proliferation & lack of differentiation Media fragmentation Increased competition Increasing promotional expenditure & reduced advertising expenditure

WHY IS IT HARD IT BUILD BRANDS?

1. Pressure to Compete on Price 8. Short-Term Pressures of sales 2. Proliferation of Competitors

7. Pressure to Invest Elsewhere

BUILDING BRANDS

3. Fragmenting Markets & Media

6. Bias Against Innovation

4. Complex Brand Strategies & Relationships 5. Bias Toward Changing Strategies

Obstacles to the Branding Principles

1) 2) 3) 4) Current corporate accounting treats any outlay where payback is uncertain (e.g. advertising) as an expense not asset. Annual accounting - brand managers judged on yearly results. Product based accounting discourages product managers from bolstering brand as a whole Even though advertising agency has own network of partner companies in charge of name research, packaging, graphic identity, event, communications (thus IMC), they cannot address strategic issues like brand portfolio management. High turnover of brand managers Failure to look at brand management as a system & not piecemeal.

5) 6)

Seven Deadly Sins of Brand Management

1) 2) 3) 4) 5) 6) Failure to fully understand meaning of brand Failure to live up to brand promise Failure to adequately support the brand Failure to be patient with the brand Failure to adequately control the brand Failure to properly balance consistency & change with the brand Failure to understand complexity of brand equity measurement & management.

7)

Some Brand Marketing tradeoffs

STRATEGIC FINANCIAL Retaining customers vs. acquiring customers Brand expansion vs. brand fortification Product performance vs. brand image Points of parity vs. points of difference

Short-run vs. long-run objectives Sales-generating vs. brand-building activities Accountable or measurable tactics vs. non-measurable tactics Quality maximization vs. cost minimization ORGANIZATIONAL Global vs. local Top down vs. bottom up Customization vs. standardization Internal vs. external

TACTICAL Push vs. pull Continuity vs. change Classic vs. contemporary image Independent vs. universal image

Twenty-First Century Branding

1. 2. 3. Relying on brand awareness has become marketing fools gold Smart brands are more concerned with brand relevance and brand resonance. You have to know it before you can grow it Most brands dont know who they are, where theyve been, and where theyre going. Always remember the Spandex rule of brand expansion Just because you can doesnt mean you should. Great brands establish enduring customer relationships They have more to do with emotions and trust than with footwear cushioning or the way a coffee bean is roasted. Everything matters Even your restroom. All brands need good parents Unfortunately, most brands come from troubled homes. Big is no excuse for being bad Truly great brands use their superhuman powers for good and place people and principles before profits. Relevance, simplicity, and humanity Rather than technology will distinguish brands in the future.

4.
5. 6.

7.
8.

Brand equity

What is Brand Equity

Is set of assets & liabilities linked to a brand, its name & symbol, that add to or subtract from the value provided by a product or service to a firm and/or to that firms customers.

Brand equity
Is the added value endowed to products & services. It is an important intangible asset that has psychological & financial value to the firm. Customer based brand equity is the differential effect that past brand knowledge has on consumer response to the marketing of a brand. Thus power of brand lies in minds of consumers & what they have experienced/learned about brand over time.

A brand is said to have positive customer-based brand equity when consumers react more favorably to a product and the way it is marketed when the brand is identified as compared to when it is not. A brand with positive customer based brand equity results in consumers more accepting of new brand extension, less sensitive to price increase or withdrawal of advertising support or more willing to seek brand in new distribution channel.

Brand equity Contd of slide.

There are three key ingredients to this definition. First, brand equity arises from differences in consumer response. If no differences occur, then the brand name product can essentially be classified as a commodity or generic version of the product. Competition would then be probably be based on price. Second, these differences in response are a result of consumers knowledge about the brand .Brand knowledge consists of all the thoughts, feelings, images, experiences, beliefs, and so on that become associated with the brand. In particular, brands must create strong, favorable, and unique brand associations with customers. Third, the differential response by consumers that makes up the brand equity is reflected in perceptions, preferences, and behavior related to all aspects of the marketing of a brand. Consumer knowledge,feelings and actions is what drives the differences that manifest themselves in brand equity. The quality of investment rather than quantity is critical factor.

Brand equity models

1) Brand Asset Valuator Young and Rubicam (Y&R) developed a model of brand equity called Brand Asset Valuator (BAV). There are four key components or pillars of brand equity, according to BAV: Differentiation measures the degree to which a brand is seen as different from others. Relevance measures the breadth of a brands appeal Esteem measures how well the brand is regarded and respected Knowledge measures how familiar and intimate consumers are with the brand. Differentiation and Relevance combine to determine Brand Strength. These two pillars point to the brands future value, rather than just reflecting its past. Esteem and Knowledge together create Brand Stature, which is more of a report card on past performance.

Brand equity models Contd of Slide. 2) Aaker Model 5 categories of brand assets & liabilities linked to a brand that add or subtract from the value of product/service a) Brand loyalty, b) Brand awareness c) Perceived quality d) Brand associations e) Other proprietary assets e.g. patents, trademarks, channel relationships

Brand equity models Contd of Slide. 3) Brandz Is based on Brand Dynamics pyramid. According to this model, brand building involves a sequential series of steps. Presence. Do I know about it? Relevance. Does it offer me something? Performance. Can it deliver? Advantage. Does it offer something better than others? Bonding. Nothing else beats it.

Brand equity models Contd of Slide.

4) Brand resonance Pyramid Four steps to brand building involves 6 brand building blocks. Brand salience relates to how often and easily the brand is evoked under various purchase or consumption situations. Brand performance relates to how the product or service meets customers functional needs. Brand imagery deals with the extrinsic properties of the product or service, including the ways in which the brand attempts to meet customers psychological or social needs. Brand judgments focus on customers own personal opinions and evaluations. Brand feelings are customers emotional responses and reactions with respect to the brand. Brand resonance refers to the nature of the relationship that customers have with the brand and the extent to which customers feel that they are in sync with the brand.

Brand Resonance Pyramid

4. Relationships What about you and me?

Resonance

Intense active loyalty

3. Response = What about you?

Judgments Feelings

Positive, accessible reactions

2. Meaning = What are you?

Performance Imagery

Strong, favorable & Unique brand associations

1. Identity = Who are you?

Salience

Deep, broad brand awareness

Brand Equity by David Aaker

Name Awareness Brand Loyalty
BRAND EQUITY
Name Symbol

Perceived Quality

Brand Associations Other Proprietary Brand Assets

Provides Value to Customer by Enhancing Customers: Interpretation/ Processing of Information Confidence in the Purchase Decision Use Satisfaction

Provides Value to Firm by Enhancing: Efficiency and Effectiveness of Marketing Programs Brand Loyalty Prices/Margins Brand Extensions Trade Leverage Competitive advantage

Brand Equity
Note: Strong brands are managed not for general awareness but for strategic awareness i.e. to be remembered for right reasons & avoid being remembered for wrong reasons. Perceived quality customer satisfaction ROI (having more impact than market share, R&D or marketing expenditure) Brand loyalty is enhanced through loyalty programmes, customer clubs & database marketing.

THE AWARENESS PYRAMID

Top of Mind

Brand Recall

Brand Recognition

Unaware of Brand

Dominant brand is only brand recalled by high percentage of respondents

Importance of Brand Awareness

Brand awareness & familiarity sufficient for favorable consumer response in low involvement products - Brand awareness plays important role in consumer decision-making through learning ,consideration, choice advantage - Brand recognition vs brand recall : Brand recognition uses brand as a cue & brand recall requires consumers to retrieve brand from memory given product category, needs fulfilled, purchase/usage situation as cue - Brand awareness is created by increasing familiarity of brand through repeated exposure (for brand recognition) & strong associations (for brand recall).
-

The Value of Brand Awareness

Anchor to Which Other Associations Can Be Attached BRAND AWARENESS Familiarity Liking

Signal of Substance/Commitment Brand to Be considered

Recognition Versus Recall: Graveyard Model

High

Graveyard Mass Brands

x Niche Brand

Low

Low

Recall

High

HOW TO ACHIEVE BRAND AWARENESS

1) 2) 3) 4) 5) 6) 7) 8) 9) Be different, memorable Involve a slogan or jingle Symbol/logo exposure Publicity Event sponsorship Consider brand extensions Using cues - characters, package Recall requires repetition Recall bonus Strong TOM results in brand salience that can inhibit recall of other brands.

Perceived quality
Perceived quality can be defined as customers perception of overall quality or superiority of product or service with respect to its intended, purpose, relative to alternatives Perceived quality is different from: 1) Actual or objective quality 2) Product based quality nature and quantity of ingredients, features, services included. 3) Manufacturing quality zero defect goal.

The Value of Perceived Quality

Reason- to-Buy
PERCEIVED QUALITY Differentiate/Position A Price Premium Channel Member Interest Brand Extensions

Quality Dimensions
Product Quality 1. Performance: How well does a washing machine clean clothes? 2. Features: Does a toothpaste have a convenient dispenser? 3. Conformance with specifications: What is the incidence of defects? 4. Reliability: Will the lawn mower work properly each time it is used? 5. Durability: How long will the lawn mover last? 6. Serviceability: Is the service system efficient, competent, and convenient? 7. Fit and finish: Does the product look and feel like a quality product?

Contd of Slide
Service Quality 1. Tangibles: Do the physical facilities, equipment, and appearance of personnel imply quality? 2. Reliability: Will the accounting work to performed dependably and accurately? 3. Competence: Does the repair shop staff have the knowledge and skill to get the job done right? Do they convey trust and confidence? 4. Responsiveness: Is the sales staff willing to help customers and provide prompt service? 5. Empathy: Does the bank provide caring, individualized attention to its customers?

(A) How to deliver high quality

1) 2) 3) 4) 5) Commitment to quality Quality culture in organization, in its norms of behaviours ,symbols & values. Customer Input Measurement/Goals/Standards Allow Employee Initiative

(B) Signals of High Quality (contd of Slide)

Actual quality must be translated into perceived quality by offering signals/cues. Often key dimensions that are visible can be pivotal in affecting perceptions about more important dimensions which are difficult to judge. e.g. Stereos large size means better sound Tomato juice thickness means quality. In addition to brands product features (intrinsic cues), other brand associations like advertising amount, brand name, price (extrinsic cues) also influence perceived quality. Price acts as a quality cue when other cues are not available, unknowledgeable customers, products like wine, perfume etc.

Perceived quality
Perceived quality can be defined as customers perception of overall quality or superiority of product or service with respect to its intended, purpose, relative to alternatives Perceived quality is different from 1) Actual or objective quality 2) Product based quality nature n qty of ingredients,features,services included. 3) Manufacturing quality zero defect goal.

The Value of Perceived Quality

Reason- to-Buy
PERCEIVED QUALITY Differentiate/Position A Price Premium Channel Member Interest Brand Extensions

Quality Dimensions
Product Quality 1. Performance: How well does a washing machine clean clothes? 2. Features: Does a toothpaste have a convenient dispenser? 3. Conformance with specifications: What is the incidence of defects? 4. Reliability: Will the lawn mower work properly each time it is used? 5. Durability: How long will the lawn mover last? 6. Serviceability: Is the service system efficient, competent, and convenient? 7. Fit and finish: Does the product look and feel like a quality product?

Contd of Slide
Service Quality 1. Tangibles: Do the physical facilities, equipment, and appearance of personnel imply quality? 2. Reliability: Will the accounting work to performed dependably and accurately? 3. Competence: Does the repair shop staff have the knowledge and skill to get the job done right? Do they convey trust and confidence? 4. Responsiveness: Is the sales staff willing to help customers and provide prompt service? 5. Empathy: Does the bank provide caring, individualized attention to its customers?

(A) How to deliver high quality

1) 2) 3) 4) 5) Commitment to quality Quality culture in organization, in its norms of behaviours ,symbols & values. Customer Input Measurement/Goals/Standards Allow Employee Initiative

Brand Associations
Associations, image & positioning

A brand association is anything linked in memory to a brand. Association has level of strength which depends on many experiences or exposures to communications & when supported by network of other links A brand image is a set of brand associations organized in a meaningful way. Brand Image or position represent perceptions which may not reflect objective reality Brand image many, varied, strong, favourable & unique associations in that order. Positioning implies Brand Managers Intention on how he would like his brand to be viewed by the consumers which he tries to communicate through marketing mix.

Associative network memory model

Nodes represent stored information/concepts & links are strengths of association. Information may be verbal, visual, abstract, contextual.

Creating Brand image

1) Strength of brand associations Created through direct experience (strongest), word of mouth, non-commercial sources, brand elements, secondary associations, marketing mix (weakest) 2) Favorability of brand associations Choosing which associations to link to brand requires careful analysis of consumer & competition to determine optimal positioning for brand. Favorability depends on perceived desirability which in turn depends on relevance, distinctiveness & believability as perceived by consumers The firm should also see whether it can deliver based on its ability to perform, ability to communicate & sustainability of the associations. 3) Uniqueness of brand associations Unique selling proposition (points of difference) may be product related or non-product related creates reason why.

The Value of Brand Associations

Help Process/Retrieve Information Differentiate/Position ASSOCIATIONS Reason-to-Buy Create Positive Attitudes/Feelings Basis for Extensions

BRAND ASSOCIATIONS Product attributes

Intangibles
Country/geographic area Customer benefits

Competitors

Brand-name and symbol

Relative price

Product class

Use/application

Lifestyle/personality

Celebrity/person

User/customer

The Loyalty Pyramid

Committed Buyer

Likes the Brand Considers it a Friend

Satisfied Buyer with switching costs

Satisfied/Habitual Buyer No Reason to Change

Switchers/Price Sensitive Indifferent-No Brand Loyalty

The Value of Brand Loyalty

Reduced Marketing Costs Reduced Marketing Costs Trade Leverage Trade Leverage

BRAND LOYALTY
Attracting New Customers: Brand Awareness Created Reassurance to New Customers Time to Respond to Competitive Threats

Creating and Maintaining Brand Loyalty

Treat the Customer Right Stay Close to the Customer Measure/Manage Customer Satisfaction Create Switching Costs Provide Extras

BRAND LOYALTY

Measuring Brand Loyalty 1) Behaviour Measures

a) Repurchase rates. b) Percentage of total purchases. c) Number of brands purchased. 2) Measuring satisfaction/dissatisfaction 3) Switching costs a) Investment in a product b) Risk of change

Contd of Slide
4) Liking of the brand a) Liking b) Respect c) Friendship d) Trust e) Willingness to pay premium 5) Commitment a) Word of Mouth b) Interaction with product and company c) Importance to persons activities & personality.

The leverages of brand profitability

CORPORATE RESOURCES

INVESTMENTS: PRODUCTIVITY, R & D KNOW-HOW, PATENTS

MKTG INVESTMENTS FORECASTING CHANGES OF CONSUMER VALUES AND LIFE STYLES

DISTRIBUTION INVESTMENTS (PROXIMITY, AVAILABILITY) AND COMMUNICATION

LEVEL OF OBJECTIVE QUALITY COST OF QUALITY

BRAND RELEVANCE AND ADAPTATION TO ITS PRESENT MARKET

BRAND AWARENESS, IMAGE, LIKING AND FAMILIARITY

The leverages of brand profitability Contd of slide

COMPETITION -OTHER BRANDS -DISTRIBUTOR OWN BRANDS - HARD DISCOUNT

PERCEIVED VALUE VIS--VIS COMPETITION

MARKET - INVOLVEMENT -PRICE SENSITIVITY - BUYING CRITERIA

LEVEL 0F SUSTAINABLE PRICE PREMIUM

INCREMENTAL ATTRACTION AND LOYALTY

COST ADVANTAGES DUE TO MARKET LEADERSHIP

EXTENDING BRAND EQUITY BEYOND ITS MARKET

From brand assets to brand equity

Brand Awareness + Image + Perceived Quality + Evocations + Familiarity, Liking ____________________ = Brand Assets

Brand added value, perceived by consumers - Costs of branding - Costs of invested capital __________________________ Brand financial value (Brand equity)

Brand assets are a non-monetary measurement while brand equity is a monetary one.

From awareness to financial value

Brand assets Brand awareness Brand reputation (attributes, benefits, competence, know-how, etc) Brand personality Brand deep values Brand imagery Brand preference or attachment Patents and rights

Brand strength Market share Market leadership Market penetration Share of requirements Growth rate Loyalty rate Price premium

Brand value Net discounted cashflow attributable to the brand after paying the cost of capital invested to produce and run the business and the cost of marketing

Brand assets are learnt mental associations & affects. Brand strength is a measure of behavioural status. Not all of this brand stature is due to brand assets. Brand value is Brands worth in future.

Brand Identity

The Brand Identity System

Brand Identity is a unique set of associations that the brand strategist aspires to create or maintain. These associations represent what the brand wants to stand for (core values, personality traits, relationships, how brand desires to be perceived) & imply a promise to customers Brand identity should help establish a relationship between the brand and the customer by generating a value proposition involving functional, emotional, or self-expressive benefits. Brand identity consists of twelve dimensions organized around four perspectives the brand-as-product (product scope, product attributes, quality/value, uses, users, country of origin), brand-asorganization (organizational attributes, local vs global), brand-asperson(brand-personality, brand-customer relationships), and brand-as-symbol (visual imagery/metaphors and brand heritage). Brand identity structure includes a core and extended identity.

Brand Identity Traps

Brand Image Trap

Brand Positioning Trap

BRAND IDENTITY TRAPS ProductAttribute Fixation Trap

External Perspective Trap

Brand Planning Model

STRATEGIC BRAND ANALYSIS Competitor Analysis Self-Analysis Brand image/identity Existing brand image Strengths, strategies Brand heritage Vulnerabilities Strengths/capabilities Organization values

Customer Analysis Trends Motivation Unmet needs Segmentation

BRAND IDENTITY SYSTEM

BRAND IDENTITY
Extended Core

Brand as Product 1. Product scope 2. Product attributes 3. Quality/ value 4. Uses 5. Users 6. Country of Origin

Brand as Organization 7. Organization attributes (e.g., Innovation, consumer concern, trustworthiness) 8. Local vs. global

Brand as Person 9. Personality (e.g., genuine, energetic, rugged) 10.Brandcustomer relationships (e.g., friend, adviser)

Brand as Symbol 11. Visual imagery and metaphors 12. Brand heritage

Brand Planning Model Contd. Of slide

Functional benefits

VALUE PROPOSITION Emotional Self-expressive benefits benefits

CREDIBILITY Support other brands

BRAND CUSTOMER RELATIONSHIPS

BRAND IDENTITY IMPLEMENTATION SYSTEM BRAND POSITIONING Subset of the brand identity and To be actively communicated. value proposition. Providing competitive At a target audience. advantage.

Generate alternatives

EXECUTION Symbols and metaphors

Testing

TRACKING

Brand Identity Structure

1. Core Identity Soul of a brand, fundamental beliefs & values of the brand & organization behind the brand. Extended Identity includes elements that provide texture & completeness.

2.

Organizational Associations: Organization behind the brand How Organizational Associations Provide Value

THE ORGANIZATION Culture/values People Programs Assets/skills Visibility

ORGANIZATIONAL ASSOCIATIONS Environmentally sensitive Concern for customers. Community orientation Presence/success. Perceived quality Local vs. global. Innovative

Value Proposition or Customer Relationship

Credibility Expert Trustworthy Liked

Internal Culture Internal Culture Clarity Clarity Buy-in Buy-in

Brand Personality
Brand Personality is set of human characteristics associated with a given brand. It includes such characteristics (gender, age, socio-economic class; lifestyle (activities, interests & opinions) as well as human personality traits (such as warmth, concern & sentimentality).

The Brand Personality Scale (BPS): The Big Five

Sincerity (Bajaj,Tata, Hallmark, Kodak,colgate,VIP) -Down-To-Earth: family-oriented, small-town, conventional, blue-collar, all-Indian - Honest: sincere, real, ethical, thoughtful, caring -Wholesome: original, genuine, ageless, classic, oldfashioned -Cheerful: sentimental, friendly, warm, happy Excitement (Axe,Elle18, Centrefresh, Benetton) -Daring: trendy, exciting, off-beat, flashy, provocative -Spirited: cool, young, lively, outgoing, adventurous, -Imaginative: unique, humorous, surprising, artistic, fun -Up-To-Date: independent, contemporary, innovative, aggressive

The Brand Personality Scale (BPS): The Big Five Contd of Slide

Competence (L&T,Intel, CNN, IBM) -Reliable: hardworking, secure, efficient, trustworthy, careful -Intelligent: technical, corporate, serious - Successful: leader, confident, influential Sophistication (Lexus, Mercedes, Revlon) -Upper Class: glamorous, good-looking, pretentious, sophisticated -Charming: feminine, smooth, sexy, gentle Ruggedness (Levis, Marlboro, Nike) -Outdoorsy: masculine, Western, active, athletic -Tough: rugged, strong, no-nonsense.

How a Brand Personality is created Brand Personality Drivers

________________________________________________________________________
PRODUCT-RELATED CHARACTERISTICS NON-PRODUCT RELATED CHARACTERISTICS User imagery (Levis 501) Sponsorships (Swatch) Symbol (Marlboro Country) Age (Kodak) Ad style (Obsession) Country of origin (Audi) Company image (The BodyShop) CEO (Bill Gates of Microsoft) Celebrity endorsers (Lux) .

Product category (Bank) Package (Gateway computers) Price (Tiffany) Attributes (Coors Light)

Brand Personality Creates Brand Equity

BRAND PERSONALITY HOW IT CREATES BRAND EQUITY

Self-Expression Model

Relationship Basis Model

Functional Benefit Representation Model

Brand Personality: Self expression model

1) Actual self, ideal self, social self, ideal social self Brand helps to express a personality therefore, - feelings engendered by brand personality - Brand as a badge - Brand becomes part of self (extended self) 3) Brand personality & self expression needs must fit.

Brand Personality: Relationship Basis model

1) Brand a friend aspirational or trusted. 2) What if the brand spoke to you snobbish/upscale, performance brands talking down, Power brands flexing their muscles; intimidated brands showing their inferiority. 3) Brand as a active relationship partner i.e. brand behavior affects the brand customer relationship. eg. A relationship of dependency would be damaged by an out of stock condition.

Brand Personality: The functional benefit representation model

The brand personality can also play a more indirect role by being a vehicle for representing & cueing functional benefits & brand attributes. Eg mercedes sophistication=cue

Brand Behavior and Brand Personality

BRAND BEHAVIOR

PERSONALITY TRAITS

Frequent changes in position, product forms, symbols, advertising, etc. Frequent deals and coupons Advertises extensively Strong customer service, easy-to-use package, etc. Continuity of characters, packaging High price, exclusive distribution, advertises in upscale magazines Friendly advertising, endorsers Association with cultural events, PBS

Flighty, schizophrenic

Cheap, uncultured Outgoing, popular Approachable

Familiar, comfortable Snobbish, sophisticated

Friendly Culturally aware.

Brand Personality V/s User imagery

User imagery is defined as set of human characteristics associated with typical user of brand. - In most cases, brands is targeting a specific user profile & that well developed user profile is primary driver of brand personality - For many brands, however, a significant difference between brand & user personality can be important to brand strategy. e.g. Levis brand personality is driven largely by firms heritage of providing clothes for miners & by brand attribute (tough, durable, simple) & use contexts (Western/cowboys). In contrast Levis 501 user imagery driven by advertising tends to be urban, hip, contemporary, both male & female. User imagery can be driven by actual users or by promoting idealized or stylized users in advertising or other marketing efforts.

Kapferer Brand Identity prism

Physique (Key product & brand attributes) E X T E R N A L I S A T I O N Personality (traits, lifestyle)
I N T E R N
Relationship

(relationship of love, friendship, respect, awe)

Culture (Core values)

L I S

A
T I

Self image Reflection (of the user profiles ideal concept) (Belonging to a club)

O N

PICTURE OF RECIPIENT

The identity prism

1 2 3 4 5 Physique brand attributes, benefits, physical facet (how does it look) Personality Character, What kind of person if it were human Culture means set of values feeding the brands inspiration (corporate; brand culture) Relationship how brand wishes to relate to consumers Reflection user profile (demographic & psychographic) that consumers would like to be seen as a result of purchasing the brand. (Hence it is different from target market). Self image While reflection, is the targets outward mirror, the self image is the targets own internal mirror ( I feel, I am --------)

Strategic Brand management process

Strategic Brand Management Process

STEPS Identify and Establish Brand Positioning and Values Mental maps Competitive frame of reference Points of parity and points of difference Core brand values Brand mantra

Plan and Implement Brand Marketing Programs

Mixing and matching of brand elements Integrating brand marketing activities Leverage of secondary associations

Plan and Implement Brand measurement Programs

Brand value chain Brand audits Brand tracking Brand equity management system

Grow and Sustain Brand Equity

Brand -product matrix Brand portfolios and hierarchies Brand expansion strategies Brand reinforcement and revitalization

Building Customer-Based Brand Equity

BRAND-BUILDING TOOLS AND OBJECTIVES

Choosing Brand Elements Brand name Logo Symbol Character Packaging Slogan Memorability Meaningfulness Likability Transferability Adaptability Protectability

Developing Marketing Programs Product Price Distribution channels Communications Tangible and intangible benefits Value perceptions Integrate push and pull Mix and match options

Leverage of Secondary Associations

Company Country of origin Channel of distribution Other brands Endorsor Event Awareness Meaningfulness Transferability

Contd
CONSUMER KNOWLEDGE EFFECTS BRANDING BENEFITS

Brand Awareness Depth

Recall Recognition

Possible Outcomes

Greater loyalty. Less vulnerability to competitive marketing action and crises.

Breadth

Purchase Consumption

Larger margins. More elastic response to price decreases. More inelastic response to price increases.

Brand Associations
Strong Relevance Consistency Favorable Desirable Deliverable Points-of-parity Points-of-difference

Greater trade cooperation and support. Increased marketing communication efficiency and effectiveness.

Possible licensing opportunities.

More favorable brand extension evaluations.

Unique

Measuring Customer-Based Brand Equity

1. Brand Audit A. Brand inventory B. Brand exploratory

2. Brand Value Chain A. Brand equity sources B. Brand equity outcomes

3. Brand Equity Management System A. Brand equity charter B. Brand equity report C. Brand equity responsibilities

Managing Customer-Based Brand Equity

1. Define Brand Hierarchy A. Principle of simplicity B. Principle of relevance

Employ as few levels as possible. Create abstract associations relevant to as many products as possible . Differentiate individual products and brands. Adjust prominence to affect perceptions of product distance. Link common products through shared brand elements .

C. Principle of differentiation D. Principle of prominence

E. Principle of commodity

2. Define Brand-Product Matrix A. Brand extensions

Establish new equity and enhance existing equity Maximize coverage and minimize overlap

B. Brand portfolio

Managing Customer-Based Brand Equity Contd of Slide

3. Enhance Brand Equity over Time A. Brand reinforcement

Innovation in product design, manufacturing and merchandising. Relevance in user and usage imagery.

B. Brand revitalization

Back to basics strategy. Reinvention strategy.

4. Establish Brand Equity over Market Segments A. Identify differences in How they purchase and use products . consumer behavior What they know and feel about different brands. . B. Adjust branding program Choice of brand elements. Nature of supporting marketing program. Leverage of secondary associations.

The extension of brand management

- Image advertising
Aspirational fulfillment D e p t h - Co-branding - Sponsorship

- Fanzines
- Web sites - Virtual communities - Ethical growth

- Intercommunity events
(brand + clients)

- Advertising
- In-store animations - Built-in experiential product concepts - Store tainment - Street marketing

- Collectors or systematic
additions tied to an event (Barbie, Lego etc.)

- One-to-one
- Recognition and service - Co creation

Experiential

Enhancement o f b r a n d

- Product quality
- Product advantage - Trial promotion

- Post-purchase promotions

- Loyalty programmes (cards)

Functional satisfaction

Short - term transaction

Time perspective of the relationship Re-purchase

Long-term reciprocal commitment

Brand Building

Aakers Ten Guidelines for Building Strong Brands

Brand identity brand as product, organization, person, symbol. Value proposition functional, emotional & symbolic Brand positioning is the identity that is actively communicated Execution Consistency over-time Brand system Brands in the portfolio should be consistent & synergistic 7) Brand leverage for line extensions & brand extensions 8) Tracking brand equity 9) Brand responsibility 10) Invest in brands even when financial goals are not met. 1) 2) 3) 4) 5) 6)

Building a strong brand: The 4 steps of brand building Brand laddering

1) Who are you (brand identity) 2) What are you (brand meaning) 3) What do I think/feel about you (brand response) 4) What kind of association/connection would I like have with you (Brand relationships).

to

Brand Resonance Pyramid Brand Building Blocks

Resonance

4. Relationships What about you and me ?

Judgments

Feelings

3. Response What do I think/feel about you ?

Performance

Imagery

2. Meaning What are you?

Salience

1. Identity Who are you?

Subdimensions of Brand building Blocks

Resonance Loyalty Attachment Community Engagement Judgments Quality Credibility Consideration Superiority Feelings Warmth Fun Excitement Security Social Approval Self-respect Imagery User Profiles. Purchase and usage situations. Personality and values. History, heritage, and experiences .

Performance Primary Characteristics and secondary Features . Product reliability. durability, and serviceability Service effectiveness, efficiency, and empathy . Style and Design. Price .

Salience Brand Awareness Recognition & Recall Category Identification Needs Satisfied

Brand Salience
A highly salient brand is one that has both depth & breadth of brand awareness. Depth is likelihood that brand element will come to mind & ease with which it does so. Breadth of brand awareness concerns range of purchase & usage situations in which brand elements come to mind.

Brand performance Attributes & benefits

1)
2) 3) 4)

Primary ingredients & supplementary features Product reliability, durability, serviceability Service effectiveness, efficiency, empathy Style & design

5)

Price

Brand image
1) 2) 3) 4) User profile Purchase & usage situations Personality & values History, heritage & experience

Brand judgements
Brand judgements are opinions & evaluations: 1) Brand quality 2) Brand credibility considers broader issues related to company associated with brand. Brand credibility is viewed on 3 dimensions a) Is brand competent, innovative, market leader (brand expertise) b) Dependable & keeping customer interests in mind (brand trustworthiness) c) Fun, interesting & worth spending time with (brand likeability) 3) Brand consideration how personally relevant consumers find the brand. 4) Brand superiority

Brand feelings
Brand feelings are customers emotional responses & reactions 1) Immediate & experiential warmth, fun, excitement 2) Enduring & private security, social approval, self-respect.

Brand resonance
Refers to nature of relationships & extent to which customers feel in sync with brand. Dimensions 1) Behavioural loyalty 2) Attitudinal attachment 3) Sense of community 4) Active engagement

Customer-Based Brand Equity Pyramid

Consumer Brand Resonance

INTENSE, ACTIVE LOYALTY

Consumer Judgements

Consumer Feelings

POSITIVE, ACCESSIBLE REACTIONS

Brand Performance

Brand Imagery

POINTS-OFPARITY AND POINTS-OFDIFFERENCE DEEP, BROAD BRAND AWARENESS

Brand Salience

Brand positioning

Implementation of Brand Identity-BRAND POSITIONING Brand Positioning is the part of brand identity & value proposition that brand manager decides to actively communicate to target audience & that demonstrates an advantage over competing brands .

Brand Planning Model

STRATEGIC BRAND ANALYSIS Competitor Analysis Self-Analysis Brand image/identity Existing brand image Strengths, strategies Brand heritage Vulnerabilities Strengths/capabilities Organization values

Customer Analysis Trends Motivation Unmet needs Segmentation

BRAND IDENTITY SYSTEM

BRAND IDENTITY
Extended Core

Brand as Product 1. Product scope 2. Product attributes 3. Quality/ value 4. Uses 5. Users 6. Country of Origin

Brand as Organization 7. Organization attributes (e.g., Innovation, consumer concern, trustworthiness) 8. Local vs. global

Brand as Person 9. Personality (e.g., genuine, energetic, rugged) 10.Brandcustomer relationships (e.g., friend, adviser)

Brand as Symbol 11. Visual imagery and metaphors 12. Brand heritage

Brand Planning Model Contd. Of slide

Functional benefits

VALUE PROPOSITION Emotional Self-expressive benefits benefits

CREDIBILITY Support other brands

BRAND CUSTOMER RELATIONSHIPS

BRAND IDENTITY IMPLEMENTATION SYSTEM BRAND POSITIONING Subset of the brand identity and To be actively communicated. value proposition. Providing competitive At a target audience. advantage.

Generate alternatives

EXECUTION Symbols and metaphors

Testing

TRACKING

Positioning a brand

What/Why?

For whom?

When?

Against whom?

Brand Positioning

Subset of Identity/ Value of Proposition Core Identity Points of Leverage Key benefits

Target Audience Primary Secondary

BRAND POSITIONING

Actively Communicate Augment the Image Reinforce the Image Diffuse the Image

Create Advantage Points of Superiority Points of Parity

Identifying & Establishing brand positioning

1) a) b) 2) 3) Brand positioning is act of designing the companys offer & image so that it occupies, distinct & valued place in target customers minds. Requires determining Frame of reference Target market Main competitors Points of parity of brand associations 2 types - category & competitors. Points of difference in brand associations It is important to establish POPs before PODs POPs-3 ways to convey brands category membership is to communicate category benefits, comparing to exemplars(well known brands in a category), & relying on product descriptors. PODs should have desirability criteria of relevance, distinctiveness& believability & deliverability criteria of feasibility, communicability & sustainability. Challenge of positioning is convincing target market about negatively correlated attributes & benefits e.g. taste v/s low calories.

Points of Parity & Points of Difference

Points of Difference Strong, favorable, unique associations. Thus with POD, brand must demonstrate clear superiority Points of Parity are of 2 types Category & Competitive a) Category POP are associations consumers view as essential to be a legitimate & credible offering within a certain product or service category. Thus, they are necessary but not sufficient condition for brand choice. b) Competitive POP are associations designed to negate competitors POD.

Points of Parity & Points of Difference Contd of Slide .

To achieve POP on a particular attribute or benefit, a sufficient number of consumers must believe that the brand is good enough on that dimension. There is a zone or range of tolerance or acceptance with points of parity. In fact establishing category membership is very important or customers can get confused.

3 Main ways to convey a brands category membership

1)
2)

Announcing category benefits Comparing to exemplars

3)

Relying on the product descriptor.

How to evaluate and choose a brand positioning Are the products current looks and ingredients compatible with this positioning? How strong is the assumed consumer motivation behind this positioning? What size of market is involved by such a positioning? Is this positioning credible? Does it capitalize on a competitors actual or latent weakness? What financial means are required by such a positioning? Is this positioning specific and distinctive? Is this a sustainable positioning which cannot be imitated by competitors? Does this positioning leave any possibility for an alternative solution in case of failure? Does this positioning justify a price premium?

Selecting & Creating brand Positioning Decision

Self Analysis Be Consistent with: Brand attributes Brand Perceptions

Competitors Associations Differentiate

ASSOCIATIONS

Target Market Provide Reason-to-Buy Add Value MBE-David Aaker

Signaling the positioning

Signaling the positioning

1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. Identifying & managing signals Brand elements Product Price Place-Direct v/s indirect channels, brand image/store image interplay, Push v/s pull strategies,segmentation of retail outlets, co-operative advertising. Advertising Using promotions to strengthen associations eg. Happy meal or Nescafe with Shaker Using publicity People Pace(Process) Physical evidence Involving the customer Events and causes Endorsers

Building Brand equity

Brand equity drivers 1) The initial choice of brand elements brand names, URLs, logos, symbols, characters, spokespeople, slogans, jingles, packages, and signage. 2) The product and service and all accompanying marketing mix activities and supporting marketing programs. 3) Other associations indirectly transferred to the brand by linking it to some other entity. (e.g., a person, place, or thing).

Brand elements
Brand name Symbol Slogan

Criteria for choosing brand elements that make brand identity.

1)

2) 3) 4)

5) 6)

Memorability easily recognized and recalled.For brand name, also easy to pronounce. Meaningfulness - descriptive & persuasive Likeability fun, rich visual & verbal imagery, aesthetically appealing Transferability across product categories, geographic boundaries & cultures Adaptability flexible, updatable Protectability legally and competitively

Choosing brand elements Contd of slide .

Developing brand elements

Name-research procedures include association tests (What images come to mind?), learning tests (How easily is the name pronounced?), memory tests (How well is the name remembered?), and preference tests (Which names are preferred?).

Criteria for Brand Name Selection

A proposed name should: 1. Be easy to learn and remember it is helpful if it is unusual, interesting, meaningful, emotional, pronounceable, spellable, and/or if it involves a visual image. 2. Suggest the product class so that name recall will be high while still being compatible with potential future uses of the name. 3. Support a symbol or slogan. 4. Suggest desired associations without being boring or trivial. 5. Not suggest undesired associations it should be authentic, credible, and comfortable and not raise false expectations. 6. Be distinctive it should not be confused with competitors names. 7. Be available and protectable legally.

Landors Brand Name Taxonomy

I.

Descriptive Describes function literally, generally unregisterable Examples: Singapore Airlines, Global Crossing

II. Suggestive Suggestive of a benefit or function Examples: march FIRST, Agilent Technologies III. Compounds Combination of two or more, often unexpected, words Examples: redhat IV. Classical Based on Latin, Greek, or Sanskrit. Example: Meritor V. Arbitrary Real words with no obvious tie-in to company Example: Apple

VI. Fanciful Coined words with no obvious meaning Example: avanade

Note on brand names

Non meaningful names are more transferable High imagery brand names (Frog, Ocean) are more memorable than low-imagery names (Truth, History) Choosing distinctive names is as important as choosing simple, easy to pronounce, familiar, meaningful, easy to remember Brand name should be chosen to communicate performance related & abstract associations.

Symbols
When products & services are difficult to differentiate, a symbol can be central element of brand equity.

The Role of the Symbol

Awareness

Associations

SYMBOL

Liking

Perceived Quality Loyalty

Symbols can be nearly anything, including: Geometric shapes Mercedes Things Kingfisher Packages Calcium Sandoz Logos Apple Computers apple with a bite out of it People the Maytag repairman Scenes Marlboro country Cartoon characters Ronald Mcdonald,Pillsbury

Slogans
1) Slogan can be tailored to positioning strategy 2) Can generate equity of its own 3) Can reinforce name or symbol Slogan is most effective when it is specific, to the point, memorable(interesting,relevant, funny, catchy etc) & linked to the brand.

Styling of branding elements has 4 dimensions:

a)
b) c) d)

Complexity(minimalism v/s ornamentalism Representation (realism v/s abstraction) Perceived movement (dynamic v/s static) Potency (loud/strong v/s soft/weak).

Brand Activation

From Strategy to activation

Brand concept Target market Values Insight

Brand activation at retail

Brand prototype

Brand activation at contact

Brand activation through media

Brand lines Sub brands Product insight

Brand Lines Sub - brands Product insight

B. Designing Holistic Marketing Activities A brand contact can be defined as any information-bearing experience a customer or prospect has with the brand, the product category, or the market that relates to the marketers product or service. Any of these experiences can be positive or negative. The company must put effort into managing these experiences.

Designing Marketing Programme to build Brand equity

1) Experiential marketing sense, feel, think, act, relate customers want to be entertained, stimulated, emotionally affected & creatively challenged. The idea is not to sell something but to deliver a desirable customer experience 2) One to one marketing focus on individual consumer, respond to consumer dialogue via interactivity & customize products 3) Permission marketing through some kind of incentive 4) Relationship marketing loyalty programs

B. Designing Holistic Marketing Activities Contd of Slide.

1.
2. 3.

Personalization. Integration. Internalization Internal branding is activities and processes that help to inform and inspire employees. The brand promise will not be delivered unless everyone in the company lives the brand.

Integrating Communication options

Means choosing a variety of different communications options that share common meaning & context but also offer different complementary advantages.

Marketing Communications options

1) 2) 3) 4) 5) 6) 7) 8) 9) 10) Media advertising Direct response advertising Online advertising Place advertising- OOH Point of Purchase Trade promotions Consumer promotions Event marketing & sponsorship Publicity & PR Personal selling.

IMC program should satisfy 6 criteria: Proportion of audience reached by each communication option

1) Coverage (Proportion of audience reached by each

2) 3) 4) communication option. Main effects + intersection effects of a communication option) Contribution relates to the inherent ability of a marketing communication option to create desired response. Commonality Consistent & cohesive meaning of all communication options Complementarity different associations & linkage emphasized by different communication options e.g. advertising (awareness & attitudes) & sales promotion (action). Versatality effectiveness for different customer groups

5)

Integrating Marketing Communications to Build Brand equity

Information processing model of communications Steps Pitfalls 1) Exposure media plan failure 2) Attention Boring creatives 3) Comprehension Lack of product category knowledge 4) Yielding Lack of positive attitude due to irrelevant or unconvincing product claims. 5) Intention Lack of immediate perceived need 6) Behaviour Failure to remember anything from ad when confronted with available brands in store.

Ideal campaign
Steps Exposure Ideal ad campaign Right consumer should be exposed to right message at right place right time Creative strategy should make consumer notice ad Ad should reflect consumers level of understanding of product & brand Ad correctly positions on POP & POD Ad motivates consumers to consider purchase Ad creates strong brand associations

Attention Comprehension Yeilding Intention Behaviour

Designing an ad campaign
Two dimensions 1) Message strategy or positioning of an (What ad says of the brand) 2) Creative strategy (how ad expresses brand claims.)

ad the

Factors in Designing Effective Advertising Campaigns

Define Positioning to Establish Brand Equity Competitive frame of reference Nature of competition Target market Point-of-parity attributes or benefits Necessity Competitive Point-of-difference attributes or benefits Desirable Deliverable
Identify Creative Strategy to Communicate Positioning Concept Informational (benefit elaboration) Problem-solution Demonstration Product comparison Testimonial (celebrity or unknown consumer) Transformational (imagery portrayal) Typical or aspirational usage situation Typical or aspirational user of product Brand personality and values Motivational (borrowed interest techniques) Humor Warmth Sex appeal Music Fear Special effects

Factors creating weak brand links 1) Competitive clutter 2) Ad content & structure 3) Low consumer involvement Strategies to strengthen communication effect 1) Brand signatures 2) Ad retrieval cues 3) Media interactions 4) Ads over time.

C)Leveraging Secondary Knowledge to build brand equity Involves linking brand to following

1) Companies (e.g. through branding strategies) 2) Countries or geographic areas (e.g. through identification of product origin) 3) Channels of distribution (e.g. through channel strategy) 4) Other brands (e.g. through co-branding, ingredient branding) 5) Characters (e.g. through licensing) 6) Spokespersons (e.g. through endorsement) 7) Events (e.g. through sponsorship) 8) Other third-party sources (e.g. through awards or reviews).

Secondary Sources of Brand Knowledge

Ingredients Alliances

Company Extensions

Employees

Other Brands

Country of origin

People

BRAND

Places

Endorsers

Things

Channels

Events

Causes

Third party endorsements

Strategic Brand Analysis

Strategic Brand Analysis

The objective of strategic brand analysis is to precipitate & improve strategic decisions about the brand such as brand identity specification, product classes with which it should be associated, role within organizations brand system & investment level that should support it. Another objective is to identify key strategic uncertainties that will affect brand strategy. It involves a) Customer analysis b) Competitive analysis c) Self analysis

Strategic Brand Analysis

Customer Analysis Trends Motivations Segments Unmet needs

Competitor Analysis Brand Image/position Strengths/vulnerabilities

STRATEGIC BRAND ANALYSIS

Self-Analysis Existing brand image Brand heritage Strengths/weaknesses The brands soul Links to other brands

Brand system
Brand concept (value proposition)

Brand name and symbols

Product or service

Managing brand systems

- Important because of proliferation of brands

& products within a single company - A brand system serves as a launching platform for new products or brands & as a foundation for all brands in the system. Goals of system is 1) Exploit commolaties. 2) Reduce brand identity damage due to use of brand in different contexts & roles 3) Achieve clarity of product offerings 4) Facilitate change & adoption 5) Allocate resources.

Thus brand systems thinking results in questions

1) Is separate brand justifiable? 2) Is there confusion? 3) Is there overlap? 4) Can synergy be created?.

How many brands?

1) 2) 3) a) Is the brand sufficiently different to merit a new brand name? Will a new name add value? Will an existing brand be placed at risk if it is used on a new product? Will the business support a new brand name?

BRAND HIERARCHY

1) 2) 3) 4) 5)

A brand hierarchy is a means of summarizing the branding strategy by displaying the number & nature of common & distinctive brand elements across firms products. Corporate or company brand Family or Range brand or umbrella (branded house) e.g. Maggie. Individual brand or Product brand. (house of brands) Modifier designating item or model Hybrid branding Co + Indiv, Indiv + Co, Brand hierarchy may not be symmetric.

Brand hierarchies
CORPORATE BRAND General Motors Nestle HP

RANGE BRAND

Chevrolet

Carnation

HP Jet Brand

PRODUCT LINE BRAND

Chevrolet Lumina
Chevrolet Lumina Sports Coupe

Carnation Instant Breakfast

Carnation Instant Breakfast Swiss Chocolate

LaserJet IV SE

SUBBRAND

LaserJet IV SE

BRANDED FEATURE/ COMPONENT/SERVICE

Mr. Goodwrench Service System

NutraSweet

Resolution Enhancement

Guidelines for brand hierarchy decisions

1) 2) 3) 4) 5) Simplicity Relevance Differentiation Prominence Commonality.

Devising a Branding Strategy

4 General Strategies: 1) 2) 3) 4) Individual names or house of brands Blanket family names or branded house Separate family names Corporate name + individual product name.

Devising a Branding Strategy Contd of Slide .

- Brand extension line extensions & category extensions - Parent brand & sub brand - Brand line consists of all products original as well as line and category extensions sold under a particular brand. - Brand mix (or brand assortment) is the set of all brand lines that a particular seller makes available to buyers. - Licensed brands, co-branding, ingredient branding.

Brand architecture: handling a large product portfolio

Branding strategies

1) Product Brand strategy e.g. P & G 2) Line brand strategy e.g. Surf 3) Range brand strategy e.g. Maggie 4) Umbrella brand strategy e.g. Palmolive Soap, Shampoos, Tata. 5) Source brand strategy Nestle Kit Kat 6) Endorsing brand strategy Tractor from house of Asian Paints Decision stems from recognition of the brands role as expected by customer

Brand Roles
Endorser Strategic Brands

Driver Subbrands

BRAND ROLES
Silver Bullets

Branded Benefits Features Components Service programs

Strategic Brands
Strategic imperative is to allocate resources by classifying brands into divestment candidates, milkers, & strategic brands.

Brand Roles
Driver role is that part of brand name that drives the purchase decision. Eg. Sensor Razor technology of Gillette; or in Pillsbury Microwave Popcorn, Pillsbury is the driver brand & Microwave Popcorn is only a generic description. Endorser provides support & credibility to driver brands claims usually the corporate brand eg. Gillette.

Driver & endorser brands

1)
2) 3)

4)

Corporate dominant (driver) brand name Brand dominant name Endorsed brand When driver brand is endorsed by corporate/division/ subsidiary. Dual brands When two names are given equal prominence eg. Cadburys Dairy Milk Chocolate.

Subbrand Roles
A sub brand is a brand that distinguishes a part of the product line within the brand system. A sub brand can be driver (General Mills Pop Secret) or a descriptor brand (Pillsbury Microwave Popcorn).

Sub brand Roles

1) Describes offers Descriptor role communicates the product class, feature, target segment or function of brand eg. Oral B. Anti-Plaque rinse,Microsoft Office, Prefix & Suffixes eg.McChicken Structure & Clarify options Eg. Jet Airways, Jet Lite Augment/ modify the identity by changing association Surf excel. Exploit market opportunities Maggie Wheat Atta Noodles Support Vertical & horizontal extensions

2) 3) 4) 5)

The Role of the Subbrand as Modifier

COMPOSITE TERM Apartment dog Pet rock Slim-Fast cake mix by Godiva Godiva cake mix by Slim Fast

MODIFIER Apartment Pet Godiva Slim Fast

MODIFIED CONCEPT Dog Rock Slim-Fast cake mix Godiva cake mix

Healthy Choice from Kelloggs

Kelloggs

Healthy Choice

Silver Bullets
A silver bullet is a sub brand or branded benefit that is employed as a vehicle for changing or supporting the brand image of a parent brand. Videocon Bazooka,LG Golden eye

Branding strategy
Reflects the number & nature of common & distinctive brand elements applied to different products sold by firm. Thus, it involves deciding which brand names, logos, symbols etc should be applied to which products. Branding strategy is characterized by: A) Breadth (i.e. in terms of brand-product relationships & brand extension strategy) (B)Depth (i.e. in terms of product brand relationships & brand portfolio) - i.e. should firm have multiple brands in same product category? General principle in designing brand portfolio is to maximize market but to minimize brand overlap.

Designing & Implementing branding strategies

The brand product matrix is a useful tool to characterize the product & branding strategy of firm. It is a graphical representation of all brands & products sold by the firm.
Product

1
A

Brand
B

C D

Designing & Implementing branding strategies Contd of Slide

I row of the matrix = a brand line = original brand line + brand extensions - 1column of matrix = Brand portfolio = set of all brands & brand lines that a particular firm offers in particular category - A product line is group of products within a product category that are closely related, therefore they function similar or are sold to same customer group or are marketed through same type of outlets or priced in a given range. A product line may be composed of different brands or single family brand or individual brand that has been line extended - A product mix (or product assortment) is symbolized by all columns. Length,Breadth/width, depth of product mix - A brand mix (or brand assortment) is set of all brand lines that a particular seller makes available to buyers.
-

Flankers
Protective flankers or fighter brands are typically used to create stronger points of parity with competitors brands so that more important (& more profitable) flagship brands can retain their desired positioning e.g. discount brands as flanker brands.

Roles of Brands in portfolio Possible Special Roles of Brands in the Brand Portfolio

1. To attract a particular market segment not currently being covered by other brands of the firm. 2. To serve as a flanker and protect flagship brands. 3. To serve as a cash cow and be milked for profits. 4. To serve as a low-end entry-level product to attract new customers to the brand franchise. 5. To serve as a high-end prestige product to add prestige and credibility to the entire brand portfolio. 6. To increase shelf presence and retailer dependence in the store. 7. To attract consumers seeking variety who may otherwise have switched to another brand. 8. To increase internal competition within the firm. 9. To yield economies of scale in advertising, sales, merchandising, and physical distribution.

Corporate Image Dimensions

A company brand may evoke image of:
1) Performance or imagery attribute or benefit associations, product attribute, type of user, usage situation, overall judgement People & relationships Values & Programs e.g. socially responsible, environmentally concerned Corporate credibility expertise, trustworthiness, likeability.

2) 3) 4)

Leveraging the brand

Leveraging the Brand

LEVERAGING THE BRAND

Line Extensions (variants) In existing Product Class

Line Extensions(Stretching the Brand Vertically) in existing Product Class

Brand Extensions in different Product Classes

Co-Branding

Stretching Down

Stretching Up

Ad Hoc Brand Extensions

Creating a Range Brand

Introducing & Naming New Products & brand extensions

Same Name

New Name

Same product line

Line extension

Multiple branding

New product line

Brand extension

New branding

Line Extensions
Helps to: Expand user base Provide variety Energize a brand Manage true innovation Block or inhibit competitors .

1) 2) 3) 4) 5)

Line stretching Downwards

Driving forces are increased sensitivity to price, retail low priced brands, technological change. Moving down is easy, protecting brand is hard Using sub brands could be the strategy but there is risk of cannibalization Will the identity stretch? BMW 300, 500,700 series reflect different sizes & price points. However still have same identity of ultimate driving machine. But Mercedes identity being driven by prestige,exclusivity had a problem of potential inconsistency. Creating a different personality Parent Child relationship e.g. John Deere Jr. Subtle association e.g. Tractor from house of Asian Paints.

Line stretching Upwards

Will the identity stretch Upscale entry as vehicle for downstream enhancement i.e. enhancing core brand identity through new associations. e.g. Lifebuoy to Lifebuoy Gold.

Brand Extensions The Good, bad & ugly

The Good The Brand Name Aids the Extension

More Good The Extension Enhances the Brand Name

EFFECTS OF EXTENDING A BRAND TO A NEW PRODUCT

The Bad
The Brand Name Fails to Help the extension The Ugly The Brand Name Is Damaged

More Ugly New Brand name is foregone

Co Branding
1) 2) Ingredient branding Composite brand.

Range Brands

BRAND EXTENSION DECISION FOCUS DECISION SCOPE TIME FRAME Incremental Product class Short term

RANGE BRANDS Strategic Product class groupings Long term

Advantages of Brand Extension

Facilitate New Product Acceptance Improve brand image Reduce risk perceived by customers Increase the probability of gaining distribution and trial Increase efficiency of promotional expenditures Reduce costs of introductory and follow-up marketing programs Avoid cost of developing a new brand Allow for packaging and labeling efficiencies Permit consumer varietyseeking

Provide Feedback Benefits to the Parent Brand and Company Clarify brand meaning Enhance the parent brand image Bring new customers into brand franchise and increase market coverage Revitalize the brand Permit subsequent extensions

Disadvantages of Brand Extension

Can confuse or frustrate consumers Can encounter retailer resistance Can fail and hurt parent brand image Can succeed but cannibalize sales of parent brand Can succeed but diminish identification with any one category Can succeed but hurt the image of parent brand Can dilute brand meaning Can cause the company to forgo the chance to develop a new brand.

Will brand extension succeed?

Four assumptions must hold true: 1) Consumers have some awareness of & positive associations about parent brand 2) At least some of these positive associations will be evoked by the brand extension. 3) Negative associations are not transferred from parent brand 4) Negative associations are not created by brand extension Ultimate success of extension will depend on its ability to both achieve some of its own brand equity in new category as well as contribute to equity of parent brand. Brand equity is created when brand has high level of awareness & strong, favourable & unique associations. Brand extensions must achieve desire POP and POD. e.g. J&J aspirin for babies failed though J&J is synonymous with babies. Though safety & gentleness of aspirin was important, so was getting fever down quickly J&J failed on POP.

Steps in Successfully Introducing Brand Extensions

1. Define actual and desired consumer knowledge about the brand (e.g., create mental map and identify key sources of equity). 2. Identify possible extension candidates on basis of parent brand associations and overall similarity or fit of extension to the parent brand. 3. Evaluate the potential of the extension candidate to create equity according to the three-factor model: Salience(strength) of parent brand associations Favorability of inferred extension associations Uniqueness of inferred extension associations 4. Evaluate extension candidate feedback effects according to the fourfactor model: How compelling the extension evidence is How consistent the extension evidence is How strong the extension evidence is 5. Consider possible competitive advantages as perceived by consumers and possible reactions initiated by consumers. 6. Design marketing campaign to launch extension. 7. Evaluate extension success and effects on parent brand equity.

Brand extension guidelines

1) Successful brand extensions occur when there is perception of fit between parent brand & extension product 2) Basis of fit: product related attributes & benefits as well as non product related attributes & benefits related to common usage situations or use types 3) High quality brands stretch farther than average quality brands 4) A brand seen as prototypical of product category can be difficult to extend 5) Concrete attribute associations more difficult to extend than abstract benefit associations.

Brand Extension fit

Two bases of fit 1) Transferability of skills & assets e.g. Toothpaste mouth wash 2) Complementarity Moser Baer DVD player & DVDS. Ask customers: a) What product classes brand name can be extended to. b) Note that brand should not be extended to trivial product class having little perceived differentiation

When does brand extension make sense? 1) 2) Strong brand associations provide POD When brand name provides only name recognition & perceived quality umbrella, often extension will be vulnerable to competition. Category will not support resources needed to establish new name or new name will not provide useful set of associations.

3)

Brand extension also has an impact on the consumer:

in the trial rate, including a higher rate (123 vs. 100); - in the conversion rate (17 per cent vs 13 per cent); - in the loyalty rate ( index of 161 vs 100 for new brands).

Ayer model: how a family name impacts the sales of a new product
Logic for brand extensions
Product positioning Repetition Copy quality Consumer promotions Degree of involvement
Awareness of the new product (advertising recall)

Level of distribution Packaging Family name vs new name Promotions, bargains Satisfaction after trying sample Category penetration

% trying within 13 weeks after launch

Relative price Satisfaction after product use Frequency of category purchases

Repurchase rate

Success rate of two alternative branding policies

Market development Growth Launches of new brands Launches of brand extensions 57% 46% Maturity

43% 68%

Attitudes of consumers to brand extensions

Variables (Explaining25%) 1) Perceived quality of brand does not guarantee positive opinions of extension 2) Feeling of transferability influences 3) Complementary does not e.g. Sources of pasta brand extending to tomato sauce is not assumed 4) Product substitutability does not guarantee e.g. Specs vs. contacts 5) High perceived quality x transferability; High perceived quality x complementarity; High perceived quality x substitutability has positive influence 6) Perceived difficulty of extension is linked positively only in intermediate levels of difficulty. It is negative for extensions which are too easy to manufacture or too difficult.

Attitudes of consumers to brand extensions Variables (Explaining25%) Contd of slide

Also 1) If brand is mainly functional, extension is evaluated according to inherent links of perceived similarity between category of original product & that of extended product. 2) If brand is symbolic, extension is evaluated based on its belongingness to the value system An extension is acceptable//liked when it fits with the idea that consumers have of the mother-brand. This feeling is based either on high perceived similarity to the most typical product/products of a brand (also called pivot products) or on the coherence between extension & brand contract (also called its concept or identity).

Type of brand and ability to extend

Values

Interest

Know-how Formula Degree of product dissimilarity

(A)

(B)

(C)

(D)

(E)

Perimeters of brand extension

No-go area
Threats of brands capital asset

Extension zone Latent potential

Outer core
Spontaneous associations

Inner core
Line extension

A few classic errors

1) Having a restricted vision of the brand take them to be nothing
more than descriptive names. Hence brand extension is limited to few variations of main product. 2) Keeping brand locked up not leveraging on it 3) Allowing past to determine future Cadbury would not have succeeded if it used this theory. 4) Harmful extensions e.g. lower quality segments 5) Opportunism & identity incoherence Navratna Lal Tel, Extra Cool & Light all talk of Cool -Cool. 6)Protypical brands e.g. Coca Cola, Levis, Lacoste should not try to venture out. 7) The trap of mundane products.

Research Insights on Brand Extensions

Successful brand extensions occur when the parent brand is seen as having favorable associations and there is a perception of fit between the parent brand and the extension product. There are many bases of fit: product-related attributes and benefits, as well as non-product-related attributes and benefits related to common usage situation or user types. Depending on consumer knowledge of the categories, perceptions of fit may be based on technical or manufacturing commonalties or more surface considerations such as necessary or situational complementarity. High-quality brands stretch farther than average-quality brands, although both types of brands have boundaries. A brand that is seen as prototypical of a product category can be difficult to extend outside the category. Concrete attribute associations tend to be more difficult to extend than abstract benefit associations.

Research Insights on Brand Extensions Contd of slide .

Consumers may transfer associations that are positive in the original product class but become negative in the extension context. Consumers may infer negative associations about an extension, perhaps even based on other inferred positive associations. It can be difficult to extend into a product class that is seen as easy to make. A successful extension can not only contribute to the parent brand image but also enable a brand to be extended even farther. An unsuccessful extension hurts the parent brand only when there is a strong basis of fit between the two. An unsuccessful extension does not prevent a firm from backtracking and introducing a more similar extension. Vertical extensions can be difficult and often require sub- branding strategies. The most effective advertising strategy for an extension emphasizes information about the extension (rather than reminders about the parent brand).

Managing Brands over time

Managing Brands Over Time--Why Consistency is better?

1) Ownership of position 2) Ownership of identity symbol 3) Cost efficiencies

Resisting Pressures to Change Identities, Positions, and Executions PRESSURES TO CHANGE IDENTITIES/EXECUTIONS Brand Manager Mindset Strategic Misconceptions Problem solver/action orientation. Current identity/execution is ineffective. High aspirations. A new paradigm requires a new Identity/execution owned by predecessor. identity/execution. A superior identity/execution can be found. Customers are bored with or tired of stodgy identity/execution.

PRESSURES RESISTED

CONSISTENT BRAND IDENTITY, POSITIONS AND EXECUTION

BENEFITS OF CONSISTENCY Own position Own Identity symbols Cost efficiencies

Managing Brand equity

Brand Reinforcement Reinforcing brand equity requires innovation and relevance throughout the marketing program. Marketers must introduce new products and conduct new marketing activities that truly satisfy their target markets. The brand must always be moving forward but moving forward in the right direction. An important consideration in reinforcing brands in the consistency of the marketing support the brand receives, in terms of both amount and kind. Consistency does not mean uniformity and no changes: Many tactical changes may be necessary to maintain the strategic thrust and direction of the brand. Unless there is some change in the marketing environment, however, there is little need to deviate from a successful positioning.

Managing brands over-time Reinforcing brand equity

1) Maintaining Consistency of marketing support 2) Protecting Sources of brand equity unless change in consumers, competition or company makes current strategic positioning of brand less powerful (e.g. changes that make POP & POD less desirable or deliverable). May require tactical shifts & changes to maintain strategic trust & direction of brand & create same desired knowledge structures in consumers minds. e.g. Prices may move up or down, product features added/dropped brand extensions added, withdrawn, different, creative strategies or slogans. In making product change to a brand, loyal consumers should feel it is a better product not different. But product should not be changed if brand meaning is too iconic. 3) Fortifying V/s leveraging (reducing ad expenses, higher price premiums, brand extensions) 4) Fine-tuning the supporting marketing program- Even brand tactics should be changed when there is evidence that they are not contributing to brand equity.

Search for fountain of youth :

How to Contemporize a brand identity

1) a) b) c) d)

Problem is acute for heritage brands. Though considered sincere, they appear stodgy, oldfashioned & tired. Strategies are: Evolve an identity through Symbols eg. Pillsbury doughboy has got livelier Name Kentucky fried chicken becomes KFC Slogans. New product features (new,Improved)

Search for fountain of youth : How to Contemporize a brand identity Contd of Slide

2) a) b) c) d)

Augment the identity Product extension Adding an emotional benefit Use of sub brands Adding user imagery.

How to preserve the superior image of brand 1) Upgrade its current level of expectation 2) Integrate new & emerging needs while holding onto same positioning. 3) Constantly confirm ones superiority by extending the line. 4) Adapting to ones own customers who themselves change & became more experienced. 5) Investing in communication.

How to preserve the superior image of brand Cont of Slide

Creating entry barriers cost of production; mastering technology, quality; domination through image & communication; line/range extensions, opinion leadership; controlling distribution, legality. 7) From brand equity to customer equity through customer dialogue, relationship marketing, segmenting customers. 8) Sustaining proximity with influencers 9) Necessity of dual management (glocal,revelance to different segments etc) 6)

Updating positioning over time

Involves two main issues: 1) Laddering how to deepen meaning of brand from attributes to benefits, consequences to abstract values (personal goals, motivations) Reacting to competitive challenges.

Repositoning

Repositioning
Why Change identities, positions, executions? Rationale 1)IPE was poorly conceived. 2)IPE is obsolete Customer needs have changed eg fried is considered unhealthy. 3)IPE appeals to a limited market -Customer Segment dying 4)IPE is not contemporary 5)IPE is undifferentiated from competition

Managing Brand equity Contd of Slide .

Brand Revitalization Changes in consumer tastes and preferences, the emergence of new competitors or new technology, or any new development in the marketing environment. Decisions must then be made as to whether to retain the same positioning or create a new positioning, and, if so, which positioning to adopt. Sometimes the positioning is still appropriate, its the actual marketing program that is the source of the problem. Brand Crises-Swift and sincere

Revitalising brands
When prominent & admired brands have fallen on hard times a) Are key brand associations still positive & can function as POP & POD b) Should we retain same positioning or adopt new one. 1) Expanding brand awareness. Because, depth is rarely a problem for fading brands. It is breadth that is problem. Brand is thought of in very narrow ways. E.g. Burnol, Vicks. Strategy is to look at market penetration (increase quantity per usage, frequency of use, new usage opportunities, faster replacement, completely different ways to use brand). 2) Improving brand image Through improving strength, favourability & uniqueness of brand associations a) Repositioning the brand b) Changing brand elements c) Changing marketing mix d) Entering new markets

Revitalizing the Brand

2. Finding New Uses 3. Entering New markets

1. Increasing Usage

4. Repositioning the brand

BRAND REVITALIZATION

7. Extending the Brand 6. Obsoleting Existing Products

Augmenting the Product/Service

Alternatives to revitalization
1) 2) Milking option(Harvesting) Exit/Divestment/Liquidation.

Milking strategy should be used

When:
1)
2) 3) 4)

Industry decline rate not steep. Pockets of enduring demand exist Price structure stable & profits possible Loyal Customer base Brand provides economies of scale to company.

Adjustments to brand portfolio

1) Migration strategies are designed so that consumers understand how various brands in portfolio can satisfy their needs as they (consumers) or the brands/products change over time e.g. Entry-level brands to higher versions 2) Acquiring new customers Challenge lies in making brand relevant to vastly different cohort groups especially when brand has strong personality or user image associations. Strategy could be multiple marketing communications program, brand extensions & sub brands; new distribution outlets. 3) Retiring brands retrenching a fading brand.

Challenge of growth in mature markets: Segments of Consumers

Typical segments range from hell to paradise with a mix of behavioural and emotional dimensions: 1. Those consumers who dislike the brand, even hate it. It is really not part of their world. 2. Those who are not consumers because they consider the brand is underperforming on a sought attribute. 3. Those who simply are not consumers, without a specific reason (simply the brand has nothing salient to their eyes to induce trial). 4. Those who would like to buy but cannot (no availability, no accessibility, price problem).

Challenge of growth in mature markets: Segments of consumers Contd of slide

5. Those who buy from time to time, switching between brands. 6. Those who buy more often. 7. Those buyers who are involved, engaged with the brand. As soon as the brand is launched everything must be done to create and identify consumers in segments 6 and 7, the heavy buyers and the involved consumers.

Challenge of growth in mature markets

1) -

2)

Growth through existing customers CRM & research Building volume per capita by addressing barriers to consumption (e.g.. unhealthy drink) Growth through new uses & situations Growth through trading up Line extensions necessity & limits.

Challenge of growth in mature markets Contd of slide 3) 4) Growth through innovations Creating desire through innovation of value. Managing fragmented markets through right amount of segmentation & customization. Growth through cross selling Growth through internalisation.

5) 6)

Paths of brand growth and decline

STATUS

FAMILIARITY NICHE BRAND

ESTEEM LEADERSHIP

RELEVANCE

NEW

EROSION
DIFFERENCE

The 3 facets of brand loyalty

BRAND PREFERENCE (attitudes)

POTENTIAL LOYALS

ACTIVE COMMITTED LOYALS

PSEUDO LOYALS

SINGLE PRODUCT REPEAT PURCHASE TRIAL OF LINE EXTENSIONS OR BRAND EXTENSIONS

Brand capital and customer capital: matching preferences and purchase behaviour

BRAND CAPITAL Perceived superiority YES

NO

19%

35%

YES SONY
CUSTOMER CAPITAL Usage

4%

42%

NO

Brand capital and customer capital: matching preferences and purchase behaviour Thus sustaining a brand long term means: 1) Nourish the perceived difference 2) Invest in communication 3) Remain within mainstream price 4) Dominate to invest 5) Control the distribution system 6) Create entry barriers 7) Reinforce brand loyalty

Handling name changes & brand transfers Types of brand transfers

1) 2) 3) 4) 5) 6)

Name Visual identity colour, packaging, logo, symbol, slogans Physical product Audio identity Brand character Consumer benefit or brand positioning.

Managing brands over boundaries

Managing brands over geographic boundaries & market segments Rationale of going international 1) Slow growth & increased competition in domestic markets 2) Growth & profit opportunities overseas 3) Desire to reduce costs from economies of scale 4) Need to diversify risk 5) Recognition of global mobility of customers.

Advantages of Global Marketing Programs Economies of scale in production and distribution Lower marketing costs Power and scope Consistency in brand image Ability to leverage good ideas quickly and efficiently Uniformity of marketing practices.

Disadvantages of Global Marketing Programs Differences in consumer needs, wants, and usage patterns for products Differences in consumer response to marketing mix elements Differences in brand and product development and the competitive environment Differences in the legal environment Differences in marketing institutions Differences in administrative procedures.

Standardization versus customization

1) 2) Standardization in strict sense difficult Standardization & Customization. Blend global objectives with local/regional concerns.

Global Brand Strategy

1) Identify differences in consumer behaviour in each market (for e.g. how consumers purchase, use products & what they know & feel about brands). Adjust the branding program (i.e. through choice of brand elements; nature of supporting marketing program & leverage of secondary associations). Note that secondary associations e.g. country of origin may have more leverage in new market than in domestic market.

2)

Global Brand Strategy

A Building Global Customer based brand equity Means 1) To establish breadth & depth of brand awareness 2) Create strong, favorable & unique brand associations 3) Elicit positive, accessible brand responses 4) Forge intense, active brand relationships This means establishing six core brand building blocks 1) Brand salience 2) Brand performance 3) Brand imagery 4) Brand judgements 5) Brand feelings 6) Brand resonance B Global Brand positioning.

The Ten Commandments of Global Branding

1. Understand similarities and differences in the global branding landscape. Dont take shortcuts in brand building. Establish marketing infrastructure. Embrace integrated marketing communications. Cultivate brand partnerships. Balance standardization and customization. Balance global and local control. Establish operable guidelines. Implement a global brand equity measurement system. Leverage brand elements.

2. 3. 4. 5. 6. 7. 8. 9.
10.

Making brands go global How country of origin impacts globalization tendencies

Subsidiary free to decide (%)

Push towards standardization (%)

No response (%)

Germany
Great Britain Japan Switzerland

4.5
5.3 0.0 20.0

95.5
94.7 85.7 80.0

14.3 -

USA
France Italy

5.7
24.0 30.0

77.2
69.0 60.0

17.1
7.0 10.0

Mean

12.9

81.0

6.1

Which products lead to marketing standardization?

Same marketing mix in Europe (%)
Luxury goods Cosmetics 64 61

Same marketing mix within regions (%)

28 30.3

Marketing mix adapted per country (%)

8 8.7

Hi-fi/TV/video
White goods Detergents Beverages

54.2
54.2 53.8 40

20.8
37.5 30.8 30

25
12.5 15.4 30

Textiles
Cars Services Business to Business Food Mean

39.1
35 28.6 25

39.1
35 21.4 16.7

21.8
30 50 58.3

23.5 40

50 34

26.5 26

What differences between countries would compel you to adapt the marketing mix of the brand?

Type of difference Legal differences Competition Consumption habits Distribution structure Brand awareness Brand distribution level Media audience Marketing programme success Consumers needs Media availability Brand images Norms for products manufacturing Brand history Lifestyle differences Cultural differences Subsidiary sales Consumers buying power Consumers age differences

Necessary adaptation (%) 55 47 41 39 38 37 37 34 33 32 30.5 27.5 25.2 25 25 23 22 12

Which facets of the brand mix are most often globalised? ___________________________________________________________________

%
Logotype, trademark Brand name Product features Packaging After-sales service Distribution channels Sponsoring (arts) Sponsoring (sports) Advertising positioning Advertising execution Relative pricing Direct marketing Sales promotion 93 81 67 53 48 46 32 29 29 25 24 18 10

Brand Measurement

Measuring Brand Equity

There are two basic approaches to measuring brand equity. An indirect approach assesses potential sources of brand equity by identifying and tracking consumer brand knowledge structures. A direct approach assesses the actual impact of brand knowledge on consumer response to different aspects of the marketing. The two general approaches are complementary, and marketers can employ both. In other words, for brand equity to perform a useful strategic function and guide marketing decisions, it is important for marketers to (1) fully understand the sources of brand equity and how they affect outcomes of interest, as well as (2) how these sources and outcomes change, if at all, over time. Brand audits are important for the former; brand tracking is important for the latter.

Brand audits
A brand audit is a consumer-focused exercise that involves a series of procedures to assess the health of the brand, uncover its sources of brand equity, and suggest ways to improve and leverage its equity. Brand audits consist of two steps: the brand inventory and the brand exploratory. BRAND INVENTORY. The purpose of the brand inventory is to provide a current, comprehensive profile of how all the products and services sold by a company are marketed and branded. Profiling each product or service requires identifying all associated brand elements as well as the supporting marketing program. It is also advisable to profile competitive brands. The brand inventory helps to suggest what consumers current perceptions may be based on.

Brand audits Contd of slide .

BRAND EXPLORATORY. The brand exploratory is research activity conducted to understand what consumers think and feel about the brand and its corresponding product category to identify sources of brand equity. The brand exploratory often employs qualitative research techniques, such as word associations, projective techniques visualization, brand personification, and laddering, ethnography and focus groups.

Brand Tracking
Tracking studies collect information from consumers

on a routine basis over time. Tracking studies typically employ qualitative measures to provide marketers with current information as to how their brands and marketing programs are performing on the basis of a number of key dimensions. Tracking studies are a means of understanding where, how much, and in what ways brand value is being created.

The Measurement of Brand Associations

What does the brand mean to you? 1) Indirect Qualitative Approaches:- Better as respondents unwilling (as they feel information is embarrassing, private), unable (consumers dont know real reason) In Projective techniques, goal is disguised Instead of focusing on brand, discussion centers around use experience, decision process, brand user, off- the- wall perspective such as considering the brand to be a person or animal. Also ambiguous stimuli are used so there is freedom to project experiences, attitudes & perceptions.

Determining Brand Meanings

Personal Values Driving Choice

Free Association

Picture Interpretation

How Brands Are Perceived Differently

UNDERSTANDING BRAND ASSOCIATIONS INDIRECT METHODS

The Brand as a Person

Describing the Brand User Dissecting the Decision Process In-Depth Look at the Use Experience

The Brand as an Animal, Magazine, etc.

Contd of slide
Free association a) Word association with brand names, slogans b) Sentence completion Check strength of association

Measuring associations by scaling brand perceptions Scaling approaches are more objective & reliable It involves: 1) Representative sample of customers/identifying target segment 2) Determining perceptual dimensions both attributes/benefits & user profile/use situations Specifying competitive set close competitors, competitors considered, competitors in usage. 3) Determining important perceptual dimensions that discriminate or are better predictors of purchase. (Conjoint analysis) 4) Profiling brand associations vis--vis competition & vis--vis ideal (desired Brand positioning).

Brand functions and distributor/manufacturer breakdown

Power of manufacturers brands vis a vis distributor brand Very weak Weak Weak Strong

Function or role of brand

Typical product category or brand

Recognition cue Practicality of choice Guarantee of quality Optimisation of choice, sign of high quality performance. Personalising ones choice Permanence, bonding, familiarity relationship. Pleasure. Ethics and social responsibility

Milk, salt, flour Socks Wine, food, staples Cars, cosmetics, appliances, paint, services
Perfumes, clothing Trust brands Polysensual brands Reference brands, corporate brands

Strong but challenged Strong but challenged Strong Strong but challenged.

Identity and pyramid models

The 3 layers of brand-

Brand kernel

Culture
Self Projection

Brand style

Personality

Physique

Reflection

Brand themes

Relationship

PRODUCT / MARKET ANALYSIS

PRODUCT & MARKET IN NUMBERS

1. 2.

MARKET SIZE & PENETRATION MARKET TREND

3.
4. 5.

SEASONALITY
BRAND SHARES DISTRIBUTION

6.
7.

CONSUMER PROFILE
PROMOTIONAL EFFECTIVENESS

THE RULES OF DIFFERENT PRODUCT CATEGORIES

1. FUNCTIONAL PRODUCTS - ROUTINE PURCHASES. DETACHMENT ATTITUDE. TO SUCCEED BRAND THAT PERFORMS WELL COMPETITIVELY PRICED STRONG DISTRIBUTION -AS EASY SUBSTITUTABILITY STRONG AD PRESENCE

AGGRESSIVE PROMOTIONAL ACTIVITY (MATURE

MARKET)

THE RULES OF DIFFERENT PRODUCT CATEGORIES 2. IMPULSE PRODUCTS

TO SUCCEED

VERY BROAD AVAILABILITY - SALES IS IN DIRECT RESPONSE TO PRODUCT DISPLAY

INSTANT PRODUCT IDENTITY - CUSTOMER HAS ONLY SPLIT SECOND TO DECIDE ATTRACTIVE DISPLAYS, PACKAGING ADVERTISING PRESENCE

SLOGAN BASED ADVERTISING

THE RULES OF DIFFERENT PRODUCT CATEGORIES

3. CONSPICUOUS CONSUMPTION PRODUCTS ARE PRODUCTS THAT ARE USED TO DEFINE & DEMONSTRATE ONES PERSONALITY & LIFESTYLE. (CARS, HOUSES, CIGARETTES, DRINKS, CLOTHES, INTERIOR DECORATION) TO SUCCEED,

A DISTINCT PRODUCT IMAGE THRU PACKAGING, BRANDING,

STYLING, DESIGN & AD. IMAGE IS WHAT YOU ARE SELLING, FUNCTIONAL PERFORMANCE IS SECONDARY. MEASURES THAT INCREASE GENERAL AWARENESS & EMULATION. SPORT SPONSORSHIPS, CELEBRITY USAGE & FILM PLACEMENT. APPROPRIATE DISTRIBUTION & PRICING (NOT CHEAP)

THE RULES OF DIFFERENT PRODUCT CATEGORIES

4. HIGH TICKET ITEMS LOW ON PEOPLES INTEREST LIST. TO SUCCEED,

EXCELLENT COMPANY REPUTATION - TO BE IN

CONSIDERATION SET COMPETITIVE PRICING - DONT BE EXPENSIVE WITHOUT REASON. GOOD SERVICE REPUTATION DISTRIBUTION IN KEY OUTLETS.

THE RULES OF DIFFERENT PRODUCT CATEGORIES

5. SERVICES

TO SUCCEED,

SALES / SERVICE PERSONNEL MOTIVATION & TRAINING

EVEN CAPACITY UTILISATION

IMAGE & VISIBILITY THROUGH RIGHT ATMOSPHERES & INTANGIBLES LIKE UNIFORM, STATIONERY.

BUYING POWER INDEX (SEE APPENDIX NO.1)

CATEGORY DEVELOPMENT INDEX

ESTIMATED SALES (BASED ON ACTUAL BPI) SALES

BPI NATIONAL MUMBAI

CDI

100

2,00,000

2,00,000

14

28,000

56,000

200

BANGALORE

14,000

42,000

300

DELHI

10,000

10,000

100

CALCUTTA

2,000

1,000

50

BRAND DEVELOPMENT INDEX

SAY FIRM A HAS A MARKET SHARE OF 15% = 30,000 ESTIMATED SALES (BASED ON ACTUAL SALES BPI) 60,000 30,000 8,400

BPI
NATIONAL MUMBAI 100

BDI
-

14

4,200

200

BANGALORE

2,100

4,200

200

DELHI

1,500

2,250

150

CALCUTTA

300

300

100

ADVERTISING, MEDIA & SALES PROMOTION

DEVELOPING & MANAGING AN ADVERTISING PROGRAM

MISSION

MONEY
MESSAGE MEDIA MEASUREMENT

FIVE MS OF ADVERTISING (SEE APPENDIX NO.10,11,12,13)

ADVERTISING COPY STRATEGY

(CREATIVE BRIEF)
SHOULD BE TRUE TO OVERALLPOSITIONING OF PRODUCT SHOULD BE WRITTEN POSITIONING SHOULD BE CLEAR, COMPETITIVE, CORRECT FOR PRODUCT & TARGET MARKET, NONGENERIC, BELIEVABLE

GOOD COPY STRATEGY

HAS FOUR PARTS 1. WHAT ADVERTISING AIMS TO CONVEY - CENTRAL PROMISE

2. FACTS TO SUPPORT
3. CUSTOMER ADDRESSED 4. TONE & ATMOSPHERE

SUPPORT

1. PRODUCT ITSELF - INGREDIANTS - REAL OR PERCEIVED

2. PEOPLE WHO MAKE IT

3. PACKAGING 4. WAY IT IS SOLD

5. ACTUAL CONSUMER REPORTS

6. PEOPLE WHO BUY IT 7. REGION 8. OPINION OF INDEPENDENT JUDGES

RECOGNISING GOOD ADVERTISING

1. STRATEGIC FIT WITH POSITIONING 2. DISTINCTIVE / EXCLUSIVE 3. COMPETITIVE 4. NON-GENERIC

5. PROVOCATIVE
6. CONTENT MORE IMPORTANT THAN STYLE 7. BOING FACTOR 8. BELIEVABLE LOGIC 9. VISUAL / VERBAL COHERENCE 10. CONSUMER EMPATHY

MEDIA BRIEF
TARGET AUDIENCE

ADVERTISING
REACH V/S FREQUENCY MEDIA HABITS OF TARGET AUDIENCE

TIMING OF CAMPAIGN
REGIONAL WEIGHTS SHARE OF VOICE DESIRED IN EACH MARKET CREATIVE REQUIREMENTS - MINIMUM SIZE OR LENGTH OF TIME

JUDGING MEDIA PLANS

1. AGREED TARGET AUDIENCE

2. AGREED ADVERTISING MESSAGE

3. MEDIA DECISIONS

AGREED TARGET AUDIENCE

QUESTIONS TO ASK
1. CAPTIVE SALES OR CONQUEST SALES 2. DEMOGRAPHIC CHARACTERISTICS

3. REGIONAL CHARACTERISTICS
4. PSYCHOLOGICAL CHARACTERISTICS

MEDIA DECISIONS

1. REACH V/S FREQUENCY V/S IMPACT

2. MEDIA TYPES
3. SPECIFIC MEDIA VEHICLES 4. OPTIMAL FORMAT 5. MEDIA TIMING MACROSCHEDULING MICROSCHEDULING 6. GEOGRAPHICAL MEDIA ALLOCATION

REACH V/S FREQUENCY

REACH BROAD UNDEFINED AUDIENCE RAPIDLY EXPANDING MARKET NEW PRODUCT ANNOUNCEMENTS
FREQUENCY FORGETFUL AUDIENCE

COMPLEX MESSAGE HIGHLY SEASONAL RAPID CONSUMER USEUP RATE (FREQUENT PURCHASE CYCLE) STRONG LOYALTY TO COMPETITIVE BRAND

LOW CONSUMER USE-UP RATE (INFREQUENTLY PURCHASE PRODUCT)

STRONG CONSUMER LOYALTY TO OUR BRAND

IMPULSE
STRONG COMPETITORS

MEDIA TYPES DEPENDS ON

MEDIA HABITS OF TARGET AUDIENCE

BUDGETARY CONSTRAINTS PRODUCT CHARACTERISTICS

TACTICAL FACTORS - COMPETITORS, TRADE

INHERENT CHARACTERISTICS OF MEDIA MESSAGE

SPECIFIC MEDIA VEHICLES

CIRCULATION, AUDIENCE (READERSHIP), EFFECTIVE AUDIENCE, EFFECTIVE AD-EXPOSED AUDIENCE

COST PER THOUSAND CRITERION ADJUSTMENT FOR AUDIENCE QUALITY & AUDIENCE ATTENTION-PROBABILITY, EDITORIAL QUALITY TRPs & QRPs

CONTINUITY V/S BURSTS

CONTINUITY
FREQUENT PURCHASE PATTERN HIGH LEVEL OF IMPULSE BUYING EXPANDING MARKET NO BUDGET CONSTRAINTS

BURSTS
INFREQUENT PURCHASE PATTERN

STRONG LOYALTY TO BRAND

HEAVY LAUNCH WEIGHT BUDGET LIMITATIONS

TIMING DEPENDS ON

BUYER TURNOVER PURCHASE FREQUENCY FORGETTING RATE

TIMING PATTERNS (SEE APPENDIX NO.14)

ADVERTISING PATTERNS

CONTINUITY CONCENTRATION FLIGHTING PULSING

HOW TO USE PROMOTIONS EFFECTIVELY

1. OBJECTIVE - CONSUMERS, TRADE, SALESFORCE

2. UNDERSTAND WHAT EACH TYPE OF SALES PROMOTION TOOL CAN OR CANNOT DO.
3. WHAT LENGTH OF TIME

4. COST EFFECTIVENESS
5. TEST 6. LOOK FOR CREATIVE EDGE

7. USE PROMOTIONS TO STRENGTHEN ADVERTISING POSITIONING

BUYING BEHAVIOUR TYPES

High Involvement

Low Involvement

Difference between brands perceived B

COMPLEX

VARIETY SEEKING

WB

DISSONANCE Difference REDUCING between brands not perceived B P New B

HABITUAL

WB

VARIABILITY OF REFERENCE GROUP INFLUENCE

I. PRODUCT NECESSITY
CONSPICUOUS PRODUCT BRAND

LUXURY
PRODUCT BRAND

NON CONSPICUOUS

PRODUCT BRAND

PRODUCT BRAND

PRODUCT MAY SHIFT FROM WEAK TO STRONG BRAND INFLUENCE & VICE VERSA DIFFERENT STRATEGIES FOR THE QUADRANTS

II. WHICH GROUP ACTS AS REFERENCE

FCB Planning Model

Thinking
High Involveme nt 1. Informative (thinker) Car, house, furnishings, new 3. Habit products Formation (doer) Food, household

Feeling
2. Affective (feeler) Jewelry, cosmetics, motorcycles 4. Self satisfaction (reactor) Cigarettes, liquor, candy

Low Involveme nt

BRAND LOYALTY AND BRAND DISCRIMINATION

LOW I. MENS COLOGNE COLA DRINKS

BRAND LOYALTY II.

HIGH

COFFEEE POWER TOOLS GASOLINE MOTOR OIL COLOR TV

FAST FOOD RESTAURANTS

III. LIGHT BULBS DISPOSABLE RAZORS

IV. HEADACHE REMEDIES

SHAVING CREAM
COUGH REMEDIES

PERSPECTIVES TO CONSUMER BEHAVIOUR

1. DECISION-MAKING PERSPECTIVE

2. EXPERIENTIAL PERSPECTIVE

3. BEHAVIOURIAL INFLUENCE PERSPECTIVE

Classification Of Products

Most goods
Easy to evaluate

Most services

Difficult to evaluate

High in search qualities

High in experience qualities

High in credence qualities

CORPORATE NEW BUSINESS PLAN

When gap between future desired sales and projected sales, then three options. 1. INTENSIVE GROWTH current business 2. INTEGRATIVE GROWTH build or acquire businesses related to the companys current businesses. 3. DIVERSIFICATION GROWTH opportunities in unrelated business.

GROWTH STRATEGIES

INTENSIVE GROWTH (Ansoffs Product / Market Expansion Grid ) INTEGRATIVE GROWTH Backward, Forward, Horizontal DIVERSIFICATION GROWTH Concentric (Same technology / Marketing synergy), Horizontal (Appeals to current customers), Conglomerate (No relationship to the companys current technology, products, or markets).

Current Product

New Product

Current Markets

1. Market- penetration strategy

3. Productdevelopment strategy

New Markets

2. Marketdevelopment strategy

(Diversification Strategy)

Market Penetration Strategy

Current Users More qty per usage More no of times(frequency) More varied uses Competitors users Non-users