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Customer Based Brand Equity Pyramid- Keller(Brand Resonance Pyramid)

Brand resonance- strong brand & consumer connect, throusage & experience
Strong resonant brands- increased loyalty & decreased vulnerability to competition
Brand challenge- ensure right customer experiences to create right brand knowledge
Brand equity- customers develop differential towards brand hence prefer it over others
Understanding differential helps interpret the past, design effective future programmes

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Building resonance involves a series of steps
Identity- Who are you- consumers begin to understand what a brand stands for, means
Meaning- What are you- consumers link in/tangible association, understand PoD/PoP
Response- What about you- judge brands on credibility, expertise & trustworthiness
Relationships- What about you & me- How to connect, create intense, active loyalty
Building blocks- structure to build brands with customers
Salience- consumers brand recall in a purchase situation- depth & breadth of brand awareness
Performance- What a brand does to meet customers' functional needs- intrinsic properties
Imagery- Think abstractly than physically about brand, intangibles- extrinsic brand properties
Judgments- Customer brand evaluation (performance+ imagery association)- brand opinions
Feelings- emotional brand response/ reaction (mild/intense; +/-, or experiential / enduring)
Experiential feelings (warmth, fun and excitement)- immediate & short-lived
Enduring feelings (sense of security, social approval, self-respect), private, of day-to-day life
Resonance- Intense, active loyalty- customers feel a connect to brand, will miss it if it went away
Nature of relationship, extent to which customers feel they are in sync with a brand
Behavioural loyalty- repeat purchase rates
Attitudinal attachment- intensity or depth of psychological bond customers have with a brand
Active engagement- level of activity engendered by this loyalty
Sense of community- extent to which customers seek brand info, events, loyal customers

Kapferers Brand Identity Prism (1997)

How 6 personality &


facets define brand identity
Helps marketers gauge
identity, provide answers to
questions like- If the brand
person, how would he look?
traits would he have? Warm,
aggressive, approachable or
Knowing identity helps
strategy, positioning &
marketing collaterals
Physical facet, brand
relationship and customer
reflection are externalization
rest represent internalization

physical
brand
was a
What
cold,
smart?
design
affects

factors,

Physique

Core, central purpose, foundation


What is the product, what does it do, how does it add value, fill gaps
Titan and Nokia performance, Head & Shoulders dandruff

Personality

Soul, what the brand would be if it were a person, personality traits


Disney fun, Woodland rugged, Raymond well-groomed man

Reflection

External mirror, how target identifies himself wrt brand


Brand reflects customers image outward, image of buyer using brand
Lux- beauty, Pepsi young, Thums up adventurous

Consumer
mentalisation

Internal mirror, consumers attracted to brands where they see own traits
Self image, how the targeted identifies brand wrt self, inner relationship
Nike- athletic, sporty, Enfield Bullet- armed forces

Relationship

Intangible brand and consumer connect, exchanges, experiences


How should brand be seen by customers in marketing communication?
Nokia reliable friend

Culture

Culture spawns brand values and principles which bind customers


Strong dimension, differential, internalises in customers conscience
VW- German engineering, Amul- Indian, HSBC World's local bank

Case- Brand identity of Adidas & Nike

Nike

Adidas

focus on individual athletes

Sponsors teams & global events

Sports & fitness

Sports & fitness

Relationship

Sponsorship, ethics

Quality & heritage

Reflection

Aggressive, provocative, inyour- face

Sportsmanship, team player, strong


work ethic

Personality

Michael Jordan, Tiger Woods

Traditional, conservative, collective

Culture

American, Just Do It

European, traditional

Self-Image

Cool, trendy

Competitor, competent

External Physique

Internal

Nike

Adidas

Picture of Sender

Re lationshi p:
Sponsorship,
ethi cs

Culture:
American,
Just do It!

Reflection:
Aggressive,
provocative,
in-your-face

Se lf-Image:
Cool, I am an
Athlete

Picture of Recipient

Internalization

Personal ity:
Like Jordan,
Woods

Externalization

Externalization

Physique:
Sports and
fitness

Picture of Sender
Physique:
Sports and
fitness

Personal ity:
Tradi tional , conservati ve, collective

Re lationshi p:
Quali ty and
heritage

Culture:
European,
Traditional

Reflection:
true sportsmanship, A good team
player, strong work
ethic

Se lf-Image:
Rel ates more to
competing t han t o
winning

Internalization

Promo strategy

Picture of Recipient

Key differences between the two companies are at the cultural and the self-image level.
Adidas stands for European culture, traditional, conservative, collective & competent
Nike symbolises American way: individual & aggressive- Michael Jordan, McEnroe
Adidas connected to positive emotions, more to competing than to winning
Adidas- challenging oneself is exciting; winning is reward, not reason for playing well
Adidas personality reflects true sportsmanship, good team player & strong work ethic.
Nike has a cool attitude, You dont win silver, you lose gold, winning is paramount

7 Brand Architecture
An organizing structure, family tree or hierarchy of the brand portfolio that specifies brand roles
and the nature of relationships between brands and sub brands (Aaker & Joakimsthaler)
Brand architecture is like a soccer team with the football pitch as the market map, and each football
player as a brand playing a major, minor or support role. Hence individual players/brands will
benefit from identity and communication programs
The ideal portfolio

Typical market/brand portfolio

Source: Designing brand architecture (Davidson, 2002, portfolio managing matters. Brand Strategy pp 28-29)

Objectives of brand architecture are- creating effective & powerful brands, allocate brand
building resources, create synergy, clarity of product offering, leverage brand equity, and provide
platform for future growth.

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Brand portfolio- all brands, subbrands, cobrands; add /extend/ delete brands
Portfolio roles of each brandStrategic Role- important source of future profits/vision- Virgin Air, Tata indicom
Linchpin Role- brand provides key basis for customer loyalty. First Citizen Club for Shoppers
Stop, J&J baby range
Silver Bullet- brand positively influences image of another brand- IBM Thinkpad boosted
public perceptions of IBM, Nano of Tata Motors
Cash Cow- significant customer base may not require high level of investment but generates
funds to be invested in strategic, linchpin, silver-bullet brands. Parle G, Nivea Creme

Design Your Portfolio Graphics


Visual representations across portfolio of brands- logos, packaging, symbols, product design,
layout of print ads, taglines- look and feel of each brand presentation
Do visual representations send right signals of relationships between brands in portfolio?
Exercise: put all graphic representations of brand portfolio (logos, packs, mascots) on
paper. Do they convey consistent message and support brand portfolios structure
Develop Brand Portfolio Structure
Brand portfolio structure is a way of grouping brands to clarify logical relationships

Brand hierarchy tree for Indian Hotels- Taj Hotels, hallmark of luxury and service
But Taj tag was on every group hotel, guests were confused what brand Taj stood for?
Differentiated by quality & service standards , hive off hotels not fitting architecture

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Exercise- clarify relationships among brands by drawing a brand family tree.
Specify the Product-Market context of each brand
Endorser brands- Brand endorsed by parent or corporate brand where parent brand is identified
with the brand, but, endorsed brand is given greater visual weight than parent brand. The
corporate/parent brand lends credibility or assurance to endorsed brand without overpowering it
with its own associations. Cadburys Dairy Milk / Five Star. Xylys, Swiss Made- Brought to
you by Titan
Subbrand- A new brand combined with a product or corporate brand. The subbrand can make the
parent brand more vital and relevant to a new consumer segment or within a new product
category. Ford Ikon- Flair, Hyundai Getz- Prime, Gillette Sensor Excel
Benefit brands- branded features, components, or services that augment the brand offeringMaruti Ritz with Kappa engine
Cobrands- combine your brand with brand/s from another firm to create a unique offeringCitibank-Jet Platinum credit cards or highlight an ingredient of another firm in your brand
communication- HP laptops with MS Office or Intel inside, Dolby system in Multiplexes,
Teflon coating in Pans, Carl Zeiss in mobile cameras
Titan Brand Architecture

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House of Brands or Branded House
Branded House

House of brands

Master brand strategy

Product brand strategy

1 master brand across categories

New brands /extensions / sub brands

Harvard (HBR, HBS, Medical/Law), Nike

Maruti (800, Alto, SX4, Swift), P&G

Master brand does not connect in all markets


(Nike Laptops, Harvard Entertainment)

Easier for different brands to connect to


different / adjacent markets

Low branding costs/synergy- 1brand leveraged

Costlier- separate branding costs

Category failure may damage master brand

Brand failure may not affect firm

Brand architecture types: Common branding systems are

Co
rpo
rat
e
Do
mi
na
nt

Brand Type

Example

Strategic Rationale

Corporate
brand

Heinz
GE
Sony, Tata,
Reliance, HP

Bear company name


Highest in brand hierarchy
Harnesses strong corporate image
synonymous with product class
CD common, FMCG rare, tech popular

Master
brand

BMW
Mont Blanc
Nokia

Dominant, highest level in hierarchy


Typically, only brand in the system
Corporate brands were master brands

Licensed
brand

Calvin Klein,
Disney
Tommy Hilfiger

Name licensed out- fashion industryclothes, leather, eyewear, accessories

Parent brand
Godrej, Videocon
Mi House
xed brand (family
Br brand)
an
ds

Br
an
d
Do
mi
na
nt

Tata, Amul

Brand extended to multiple categories


May resemble corporate brand
Economical NPL, trust/assurance,
marketing economies
Diversified firms leverage corporate
brand association across segments/
categories
if 2 product lines are incompatible
(Titan & Sonata premium & economy)

Dual
brands
(family /
endorser
brands)

Cadbury- 5 Star
Gillette- Mach3
Ford-Ikon
Tata Indica

Combine corporate + strong subbrand


Subbrands help differentiate, drive brand
preference
Umbrella for a family of products
extensions

Co-brands
(ingredient
brands)

Intel inside
Teflon coated
Dolby system

Raise perceived quality & familiarity of


both brands
Brand exposure in absent product class

Product/Mono
brands (single
brands)

Rexona, Crocin
Nivea, Axe

Strong brand identity, need focused


Corporate brand insignificant, FMCG
Expensive and risky but profitable
Shelf space/market share/extensions

Sub Brand

Ford Ikon- Flair,


Hyundai GetzPrime,
Gillette Sensor
Excel

New brand + parent/corporate brand in


brand identity system
Subbrand draws on parent brand to target
new segment or category
Enables existing consumer connect

8 Brand Portfolio Management


Brand Portfolio- Set of all brands/lines a firm offers to buyers in a particular category.
Multiple brands increase shelf presence, attract variety seeking consumers, help new market
entry & yield economies of scale in advertising, sales & distribution
Portfolio maximises brand equity & market coverage, minimises brand overlap
Differentiation appeals to a sizeable segment & justify marketing and production costs
Critical- Portfolio monitoring & pruning of weak and unprofitable brands
Maruti- 800, Alto, A-Star, Estilo, Wagon-R, Ritz, Swift, Desire, etc & their variants
Product Branding
Separate brand, own identity, image & set of associations, company not prominent
Paras- Moov, DCold, Livon, Dermicool, Freshia,
CavinKare- Chic shampoo, Spinx perfumes, Meera Herbal, Nyle Shampoo
HUL- Rexona, Axe, Close Up, Taj Tea, Lipton Tea, Surf, Wheel
Line Branding
Brand successful in a category for a targeted consumer group, is extended to other product lines
in the category/ adjacent categories, but catering to same groups needs.
Product lines cater to different needs, cosmetics- lipstick, nail polish, moisturizers, beveragesflavours, ketchups/ mineral water/ biscuits- pack sizes, cars- variants.
Identity of the main brand is leveraged across other extensions
Line branding restricted to adjacent territories & complementary products.
Gillette razors and cartridges- Vector, Sensor, Mach 3, Turbo; shaving gels, deos, LOrealcosmetics, beauty, shampoos, skin, salons
Amar Chitra Katha- comics (print), mobile, TV, Cinema, online
Range Branding
Built on common association, competence or promise of the main brand or firm
Brands common position/ association spread across related and unrelated categories
Kingfisher symbolizes the good times- extended across Beer, airlines and soccer
Godrej symbolizes century of trust & reliability- FMCG, CD, realty, furniture, locks
Umbrella Branding
One brand for all products/categories, drawing on the strength of the master brand
Safer, cheaper than building new brand, association should strategically fit categories
Samsung- TV, fridge, washing machines, mobiles, hard disk, monitors, laptops
Virgin- Airlines, Cola, Music, Moon travel, mobile, entertainment
Source/Double Branding
Corporate + new brand (combination of umbrella & product branding strategy)
Equal prominence in communication and branding for both brands
Brand benefits from corporate brands image or adds subtracts to/ from it.
Hyundai name precedes Santro, Getz, i10, i20, Verna, Tucson
Johnnie Walker Scotch Whisky Red label, Green label, Black label & Blue label
Endorsement Branding
Similar to source branding, but product brand more significant than corporate brand

Corporate brand conveys basic associations, augmented by the product brand


Cadburys precedes Dairy Milk, 5 Star, Fruit & Nut, Celebrations, Temptations
Polo by Ralph Lauren, Armani- Signature, Collezioni, Exchange, Junior

Brand Extension
Extend existing brand to new products, services, or consumer segments
Existing brand + new brand, new brand is called subbrand
If executed well, brand extensions broaden and clarify brand meaning, if not, dilute or confuse
brand meaning. Kingfisher (Beer to Airlines) and Amul (Milk & Foods).
%LDevising the Branding Strategy
NPL 3 choices: Develop new brand elements for new product, apply some of its existing brand
elements, use a combination of new and existing brand elements
Brand extension- use an established brand to introduce a new product-Gillete Sensor
Sub-brand- new brand combines with an existing brand- Gillete Sensor Excel
Parent brand- the existing brand which gives birth to a brand extension- Gillette
Family brand- Parent brand already associated with multiple products through brand extensions.
Cadbury
Br
an
d
na
Old
m
e
New

Product category
Old

New

Line extension-(New SKU, flavours- Mirinda Brand extension- (Titan


lemon, Rasna mango, Pepsi 1.5L)
Raga, Junior Horlicks)
Sub brand- (Gillette Sensor Excel, Ford Ikon New brand- (Maruti Ritz,
Flair, Kellogg Frosties K)
Tata Nano)

Brand extensions can be broadly classified into two general categories:


1.Line extension- parent brand used to brand a new product, target new market segment within a
product category currently served by parent brand Maggi Noodle SKUs
2.Category extension- when parent brand is used to enter a different product category from that
currently served by the parent brand- Kingfisher Beer to Airlines
3.Brand line- All products- original, line & category extensions, sold under a particular brandGodrej, Videocon, Heinz
4.Brand mix (brand assortment) - all brand lines of a firm available to buyers HUL- Close-up,
Pepsodent