BA9251 BRAND MANAGEMENT LT P C

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UNIT I INTRODUCTION 8
Basics Understanding of Brands Definitions - Branding Concepts Functions of Brand Significance of Brands Different Types of Brands Co branding Store brands.
UNIT II BRAND STRATEGIES 10
Strategic Brand Management process Building a strong brand Brand positioning
Establishing Brand values Brand vision Brand Elements Branding for Global Markets
Competing with foreign brands.
UNIT III BRAND COMMUNICATIONS 8
Brand image Building Brand Loyalty programmes Brand Promotion Methods Role of
Brand ambassadors, celebraties On line Brand Promotions..
UNIT IV BRAND EXTENSION 9
Brand Adoption Practices Different type of brand extension Factors influencing Decision for
extension Re-branding and re-launching.
UNIT V BRAND PERFORMANCE 10
Measuring Brand Performance Brand Equity Management - Global Branding strategies - Brand
Audit Brand Equity Measurement Brand Leverage Role of Brand Managers Branding challenges & opportunities Case Studies.
TOTAL:45 PERIODS
TEXT BOOKS
1. Mathew, Brand Management Text & cases, MacMillan, 2008.
2. Kevin Lane Keller, Strategic Brand Management: Building, Measuring and Managing,
Prentice Hall, 3rd Edition, 2007.
REFERENCES
1. Tyboust and Kotter, Kellogg on Branding, Wiley, 2008
2. Lan Batey, Asain Branding A Great way to fly, PHI, Singapore, 2002.
UNIT I INTRODUCTION 8
Basics Understanding of Brands Definitions - Branding Concepts Functions of Brand Significance of Brands Different Types of Brands Co branding Store brands.

Introduction
Branding is a process employed by business and service organizations to create a unique identity
and distinguished image for their products and services. In a competitive business world, there
will be a good number of similar products offered by various organizations. As a result,
consumers will have wide choice and they will be looking for information to make rational
choices. In view of this, marketers use differentiation strategy, to gain the attention of the
potential customer, and to create interest in them to prefer their product. The communication
strategy requires brand support. It helps separate their product from the crowd of me-too
products and make a favorable impact on the target customer.
Meaning and Definition
In the historical past, a way to tell one persons cattle from another was by means of a hot iron
stamp. Accordingly, the practice of producers burning their mark (or brand) onto their products
continued giving rise to the use of the word branding. The word brand is derived from the Old
Norse brandr meaning to burn.
To have better understanding of the word brand, we have to consider it along with another related
word- trade mark.
A brand is a Name, term, design, symbol, or any other feature that identifies one sellers good
or service as distinct from those of other sellers.
A trademark is typically a name, word, phrase, logo, symbol, design, image, or a combination
of these elements used by an individual, or business organization to identify that the product or
service belongs legally to them. In other words, Trademarks serve to identify a particular
business as the source of goods or services.
A trademark may be designated by the following symbols:

TM

SM

(for a registered trademark)

(for an unregistered trademark, that is, a mark used to promote or brand goods)

(for an unregistered service mark, that is, a mark used to promote or brand services)

The owner of a registered trademark can challenge those who copy it or use it as it is without his
or her permission, in the court of law. Legally, he or she can prevent unauthorized use of that
trademark and punish those who misuse it.
The American Marketing Association (AMA) defines a brand as a name, term, sign, symbol or
design, or a combination of them intended to identify the goods and services of one seller or
group of sellers and to differentiate them from those of other sellers.
The objectives that a good brand will achieve include:

Delivers the message clearly

Confirms credibility of product or company

Connects target prospects emotionally with the product or company

Motivates the buyer to buy the product

Concretes user loyalty

History of Branding
The Italians were among the first to use brands, in the form of watermarks on paper in the 1200s.
In the field of mass-marketing, branding originated in the 19th century with the advent of
packaged goods. Factories put their logo or insignia on the packages, extending the meaning of
brand to that of trademark. In the field of arts, even the signatures on paintings of famous
artists like Leonardo Da Vinci can be viewed as an early branding tool.
Brands that became popular
It is the red triangle of the Bass & Company, a British brewery, and the green and gold packaging
of Lyles Golden Syrup that have claims for being considered as the worlds first trademarks.
Campbell soup, Coca-Cola, Juicy Fruit gum, Aunt Jemima, Uncle Bens rice and Kelloggs
breakfast cereal became popular famous among consumer products.
Theoretical bases
Around 1900, James Walter Thompson published a house advertisement that provided
commercial explanation of what we now know as branding. Companies soon adopted
slogans,mascots, and jingles that began to appear on radio and television.

By the 1940s,manufacturers showed interest in knowing the perceptions and attitudes of

customers toward brands and this had advanced the studies on brands and their relationship with
customers from social, psychological and anthropological perspectives.
During 1980s, the modern branding practices appeared and concepts like brand identity, brand
personality, brand value and brand equity, were employed to discuss branding effects.
The idea that consumers buy brands not only for products but also for their own psychological
and social reasons is well promoted. Naomi Klein has described this development as brand
equity mania.
In 1988, for example, Philip Morris purchased Kraft for six times what the company was worth
on paper; the premium was paid for the brand equity or value.
Brand vs Unbrand
Is branding necessary? The answer is yes as well as no. Some companies sell their products
without branding. It is called commodity strategy. We will now discuss the two strategies:
commodity strategy and branding strategy.
Commodity Strategy
The unbranded products are referred to as commodities. Commodity describes products and
services that posses two features:
Highly standardized: The quality, size, shape and other defining features of products are same.
Homogeneous: The differences between one product and another are not significant.
Examples are food grains, vegetables, fruits, edible oil, sugar, steel, and edibles. It is reported
that as much as 75 per cent of the coconut oil consumed in rural households is unbranded.
When sold as commodities, the marketer can differentiate them in the following ways:
Grading: Those less familiar with the product cannot recognize quality and the grade
specifications help them to choose the quality of their choice.

Retailer image: Some consumers trust the retailer and buy the goods recommended by him or
her.
The perceived risk in buying the product available in different grades (also, the fear of
adulteration) is reduced by the brand promises. This is the reason why consumers are shifting to
branded goods.
Branding Strategy
Branding can be a strategy when used to gain the acceptance of consumers and secure a
competitive edge. Let us examine the arguments for and against it.
Branding Function:
1. It helps in product identification and gives 'distinctiveness' to the product.
2. Indirectly it denotes the quality or standards of a product.
3. It eliminated imitation products.
4. It ensures legal rights on the products.
5. It helps in advertising and packaging activities.
6. It helps to create and sustain brand loyalty to particular products.
7. It helps in price differentiations of products.

Types of names:
Functional Names: The lowest common denominator of names, usually either named after a
person, purely descriptive of what the company or product does, or a pre- or suffixed reference to
functionality. (Dhara, Godrej, Bajaj)
Invented Names: "Invented" as in a made-up name (AIRTEL, GOOGLE, WIPRO) or a nonEnglish name that is not widely known.
Experiential Names: A direct connection to something real, a part of direct human experience.
Usually literal in nature, but presented with a touch of imagination. (Netscape, Microsoft)

Evocative Names: These names are designed to evoke the positioning of a company or product
rather than the goods and services or the experience of those goods and services. Removed from
direct experience, but relevant evoking memories, stories, and many levels of association.
(Tanishq, NIRMA)
Brand elements
Brands typically are made up of various elements, such as:

Name: The word or words used to identify a company, product, service, or concept.

Logo: The visual trademark that identifies the brand.

Tagline or Catchphrase: "The Quicker Picker Upper" is associated with Bounty paper
towels.

Graphics: The dynamic ribbon is a trademarked part of Coca-Cola's brand.

Shapes: The distinctive shapes of the Coca-Cola bottle and of the Volkswagen Beetle are
trademarked elements of those brands.

Colors: Owens-Corning is the only brand of fiberglass insulation that can be pink.

Sounds: A unique tune or set of notes can denote a brand. NBC's chimes are a famous
example.

Scents: The rose-jasmine-musk scent of Chanel No. 5 is trademarked.

Tastes: Kentucky Fried Chicken has trademarked its special recipe of eleven herbs and
spices for fried chicken.

Movements: Lamborghini has trademarked the upward motion of its car doors.

Customer relationship management

Types of brand names

Brand names come in many styles. A few include:
Initialism: A name made of initials such, as UPS or IBM

Descriptive: Names that describe a product benefit or function, such as Whole Foods, Airbus or
Toys R' Us
Alliteration and rhyme: Names that are fun to say and stick in the mind, such as Reese's Pieces
or Dunkin' Donuts
Evocative: Names that evoke a relevant vivid image, such as Amazon or Crest
Neologisms: Completely made-up words, such as Kodak
Foreign word: Adoption of a word from another language, such as Volvo or Samsung
Founders' names: Using the names of real people, (especially a founder's name), such as
Hewlett-Packard, Dell, Disney, Stussy or Mars
Geography: Many brands are named for regions and landmarks, such as Cisco and Fuji Film
Personification: Many brands take their names from myths, such as Nike; or from the minds of
ad execs, such as Betty Crocker
Punny: Some brands create their name by using a silly pun, such as Lord of the Fries, Wok on
Water or Eggs Eggscetera

The Types of Brands

Different types of brands work for different marketing approaches that your business might take.
Basically, there are a few general types of brands that your business could fall into:

Product brands: Products (commodities) become branded products when you win
awareness in the marketplace that your product has compelling characteristics that make
it different and better than others in the product category.
Branding is a powerful tool that differentiates your offering in ways that create consumer
preference and allow you to command premium pricing.

Service brands: Services are products that people buy sight-unseen. People buy services
purely based on their trust that the person or business theyre buying from will deliver as
promised. If you sell a service or run a service business, you absolutely, positively need
to develop and manage a strong, positive brand image.

Business brands: You can brand your business, itself, in addition to or instead of
branding your products or services.
If you can only build one brand and thats the best advice to any business thats short
on marketing expertise or dollars make it a business brand because this brand can
attract job applicants, investors, and (maybe most importantly) customers.

Personal brands: Whether you know it or not, you have a personal brand. If people
know your name or recognize your face, they hold your brand image in their minds.

Personality brands: Personality brands are personal brands gone big-time. Theyre
individual brands that are so large and strong that they not only deliver wide-reaching
personal celebrity but also create significant value when associated with products or
services. Think Martha Stewart, Emeril Lagasse, or Oprah, and you're on the right track.
Sure, these are all just people, but their names are associated with a superior quality and
subject expertise that speaks to their personality branding.

Co Branding:
Co-branding refers to several different marketing arrangements:
Co-branding, also called brand partnership, is when two companies form an alliance to work
together, creating marketing synergy. As described in Co-Branding: The Science of Alliance:

"the term 'co-branding' is relatively new to the business vocabulary and is used to
encompass a wide range of marketing activity involving the use of two (and sometimes
more) brands. Thus co-branding could be considered to include sponsorships, where
Marlboro lends it name to Ferrari or accountants Ernst and Young support the Monet
exhibition."

Co-branding is an arrangement that associates a single product or service with more than one
brand name, or otherwise associates a product with someone other than the principal producer.
The typical co-branding agreement involves two or more companies acting in cooperation to
associate any of various logos, color schemes, or brand identifiers to a specific product that is
contractually designated for this purpose. The object for this is to combine the strength of two

brands, in order to increase the premium consumers are willing to pay, make the product or
service more resistant to copying by private label manufacturers, or to combine the different
perceived properties associated with these brands with a single product.

Store Brands:
Store brands are a line of products strategically branded by a retailer within a single brand
identity. They bear a similarity to the concept of house brands, private label brands (PLBs) in the
United States, own brands in the UK, and home brands in Australia and generic brands. They are
distinct in that a store brand is managed solely by the retailer for sale in only a specific chain of
store. The retailer will design the manufacturing, packaging and marketing of the goods in order
to build on the relationship between the products and the store's customer base. Store-brand
goods are generally cheaper than national-brand goods, because the retailer can optimize the
production to suit consumer demand and reduce advertising costs. Goods sold under a store
brand are subject to the same regulatory oversight as goods sold under a national brand.
Store brand products encompass all merchandise sold under a retail store's private label. That
label can be the chain's own name or a brand name created exclusively by the retailer for their
stores. In some cases, a store may belong to a wholesale buying group that owns labels that are
available to the members of the group. These wholesaler-owned labels are referred to as
controlled

labels.

Store brand items are offered in just about every food and non-food grocery category: fresh,
frozen and refrigerated food, canned and dry foods, snacks, ethnic specialties, pet foods, health
and beauty care, over-the-counter drugs, cosmetics, household and laundry products, lawn and
garden chemicals, paints, hardware, auto aftercare, stationery and house wares, among other
sections of the store.
Manufacturers of store brand products fall into four general classifications:
They are large national brand manufacturers that utilize their expertise and excess plant
capacity to supply store brands.

 They are small, quality manufacturers that specialize in particular product lines and concentrate
on producing store brands almost exclusively. Often these companies are owned by corporations
that also produce national brands.
They are major retailers and wholesalers that own their own manufacturing facilities and
provide store brand products for themselves.
And they are also regional brand manufacturers that produce private label products for specific
markets.
Arguments for
Provides confidence to buyers: Consumers of all types and areas are today aspiring for quality
of life as a consequence of the development schemes of government and NGOs. The literate and
illiterate, the urban and rural, men and women prefer to buy branded products. Even the poor
prefer branded shampoos and hair oils sold in small volume sachets. To customers, brands
symbolize quality. They think the perceived risk in buying will be lower.People are confident in
buying brands like Lux, Lifebuoy, Fair& Lovely, Horlicks, Boost, Bournvita, Parachute,
Navaratna, Sunsilk, Clinic plus, and Meera.
Provides distinguishing identity: A brand name gives identity to a companys product. It helps
recognition and processing jobs easy for the company, distributors and consumers. It thus saves
costs and time in manufacturing, warehousing, transporting and order processing for the
company when selling. Distributors can reap similar benefits in handling the products and selling
them. Consumers find it easy to spot and select the product. eople can distinguish Coca cola,
Pepsi and Thumsup. Though all of them are cola drinks, they differ in packaging and taste.
Image gives competitive advantage: Brands earn recognition and reputation by their
performance. The image helps the existing products in the line as well as new products. It gives a
commanding position to the marketer to charge higher prices than competitors and to convince
distributors to carry the products. Organisations interested in quality office furniture buy from
Godrej. Men interested in buying quality suits buy from Raymond. Women interested in quality
jewellery, buy from Tanishq.
Personality attracts consumers: Brands in course of their association with consumers develop
personalities. Advertisers take this opportunity to match the personality of brands with that of

prospects. It helps build brand loyaltya lasting companionship, a strong bondage between a
brand and consumer.
Marketers create a personality for the brands they sell. Raymond talks about complete man.
Fair& Lovely presents woman as an achiever. Pleasure scooty of Hero Honda asks why boys
should have all the fun and presents a liberated young girl.
Enhances value: By their popularity, brands not only enhance their value-in-use but also valuein-exchange. A company that has built brand image over a period of time by its incessant
innovative efforts gets a reward for example, premium price offer for its brand from a competitor
or interested entrepreneur willing to own it.
Allows buying inertia-In industrial markets, quality, price and service are vital but in practice
there is one over-riding issue which is seldom mentioned as a reason for choosing a company that is because we have always bought from that company. Just consider the number of years
people in industry have used the same companies as their main suppliers. It is not unusual for a
supplier to have been used for five, ten or even twenty years.
Arguments Against
Category competition: Most of the Indians are price conscious. As such, the competition is
more of categories rather than brands. 70% of the population living in villages are less literate
and gullible. As such, branded products are not affordable to many. The real competition is not
among brands but categories.
Notion of high prices: The common notion prevalent among rural and mid income consumers is
branded products are high-priced ones. As such, they shun brands.
Investment-returns doubtful: Brand building is not an easy task. It requires a great deal of long
range investment. It is to be supported by R & D investment, advertising budget and dealer
discounts. However, there is no assurance of returns. Many brands have failed. Many are
struggling hard despite the good images they have built over a time.

Image and personality are emotional nonsense: All the talk about brand personality and image
are psychological fantasies created by marketers. No product sells on brand name. Only when it
fulfils a need, does it stay and succeed in the market. The image of a product or brand cannot
help other brands. When a person buys the product, the overriding considerations are cost (price
and operational economics) and functional benefits
Brand equity is sensible but not new: The brand equity concept replaces the old term good
will. It is not something new to be argued in favour of a brand. It is the outcome of business
built over a period. People trust Tata companies, Godrej, Mafatlal etc., as they were operating
long since and offering reasonably good products. Customers prefer to buy from a local retailer
who is known and sometimes buy on his or her recommendation.

Benefits of Branding

Consumers

Manufacturers

Identification of source

Means of identification for handling or

tracing

Assignment of responsibility

Legal protection

Risk reducer functional, physical, financial, social, Signal of quality to consumers

psychological, and time
Search cost reducer

Endowing

product

association
Promise, bond, or pact

Competitive advantage

with

unique

Symbolic, cultural

Source of financial return

Signal of quality

UNIT II BRAND STRATEGIES 10

Strategic Brand Management process Building a strong brand Brand positioning
Establishing Brand values Brand vision Brand Elements Branding for Global Markets
Competing with foreign brands.
Strategic Brand Management Process
The process of strategic brand management basically involves 4 steps:
1. Identifying and establishing brand positioning.

Brand Positioning is defined as the act of designing the company's offer and image so that it
occupies a distinct and valued place in the target consumer's mind.
Key Concepts:

Points of difference: convinces consumers about the advantages and differences over the
competitors

Mental Map: visual depiction of the various associations linked to the brand in the minds
of the consumers

Core Brand Associations: subset of associations i.e. both benefits and attributes which
best characterize the brand.

Brand Mantra: that is the brand essence or the core brand promise also known as the
Brand DNA.

2. Planning and Implementation of Brand Marketing Programs

Key Concepts:

Choosing Brand Elements: Different brand elements here are logos, images, packaging,
symbols, slogans, etc. Since different elements have different advantages, marketers
prefer to use different subsets and combinations of these elements.

Integrating the Brand into Marketing Activities and the Support Marketing Program:
Marketing programs and activities make the biggest contributions and can create strong,
favorable, and unique brand associations in a variety of ways.

Leveraging Secondary Associations: Brands may be linked to certain source factors such
as countries, characters, sporting or cultural events,etc. In essence, the marketer is
borrowing or leveraging some other associations for the brand to create some associations
of the brand's own and them to improve it's brand equity.

3. Measuring and Interpreting Brand Performance

Key Concepts:

Brand Audit: Is assessment of the source of equity of the brand and to suggest ways to
improve and leverage it.

Brand Value chain: Helps to better understand the financial impacts of the brand
marketing investments and expenditures.

Brand Equity Measurement System: Is a set of tools and procedures using which
marketers can take tactical decision in the short and long run.

4. Growing and Sustaining Brand Equity:

Key Concepts:

Defining the brand strategy: Captures the branding relationship between the various
products /services offered by the firm using the tools of brand-product matrix, brand
hierarchy and brand portfolio

Managing Brand Equity over time: Requires taking a long -term view as well as a short
term view of marketing decisions as they will affect the success of future marketing
programs.

Managing Brand Equity over Geographic boundaries, Market segments and Cultures:
Marketers need to take into account international factors, different types of
consumers and the specific knowledge about the experience and behaviors of the new
geographies or market segments when expanding the brand overseas or into new market
segments.

Strong Brand:
In general, strong brands possess the following personality attributes:

Trustworthy

Authentic

Reliable (I can always count on [brand]!)

Admirable

Appealing

Honest

Likable

Popular

Unique

Believable

Relevant

Delivers high quality, well performing products and services

Service-oriente

Building strong brand personality requires special focus on packaging and advertising.

Packaging: Second major component of brand personality is the packaging factor. It

communicates much about brand personality e.g. color association - Golden/Silver colors
are used to represent premium products.

Advertising The contents shown in the ads communicate a very strong message that
leaves a very strong and lasting impression in customers minds. The elements like
layout, colour etc (in print ads) and visual appeal, music etc contribute to the brand
personality. Mozart symphony played in Titan advertisement complements the brand
personality of Titan as sophisticated, elegant one.

Social Media
Brands are breaking the barriers and reaching customers through social media. Customers
are talking to brands and exchanging their views. Today the customers say: I know what
you are doing brand.

In order to successfully give your brand a personality on Social Media, consider these first:

What is your brand?

What would you like your brand to be seen as?

Who would you like your brand to relate to the most?

Once you have considered the above, you can then choose to respond to your consumers by
keeping the following in mind

Voice-Choose the voice that you feel would fit your personality the most. For example,
if your brand wants to be seen as the authority in your field and yet be accessible to
consumers, keep all social media interactions civil and regular. However if you want to
reach out to young people aged 16-25, you can adopt a friendlier and easy-going stance
by having an ongoing conversation with them (always have an objective in mind while
doing so).If you are targeting young people, you can adopt aHey man! Thanks for the
compliment! tone.

Politeness- Do note that just as the words Im Sorry goes a long way in rebuilding
your reputation when crisis befalls, the words Thank You also go a long way in
building up your brand personality when a customer has something nice to say about you
on Social Media acknowledge compliments and thank them for their graciousness!

Giving - Another good point to add would be that you would try your best to
continue giving your best to your customers.

Brand Positioning:
The marketing activity and process of identifying a market problem or opportunity, and
developing a solution based on market research, segmentation and supporting data. Positioning
may refer the position a business has chosen to carry out their marketing and business objectives.
Positioning relates to strategy, in the specific or tactical development phases of carrying out an
objective to achieve a business' or organization's goals, such as increasing sales volume, brand
recognition, or reach in advertising

Brand positioning process

Effective Brand Positioning is contingent upon identifying and communicating a brand's
uniqueness, differentiation and verifiable value. It is important to note that "me too" brand
positioning contradicts the notion of differentiation and should be avoided at all costs. This type
of copycat brand positioning only works if the business offers its solutions at a significant
discount over the other competitor(s).
Generally, the brand positioning process involves:
1. Identifying the business's direct competition (could include players that offer your
product/service amongst a larger portfolio of solutions)
2. Understanding how each competitor is positioning their business today (e.g. claiming to
be the fastest, cheapest, largest, the #1 provider, etc.)
3. Documenting the provider's own positioning as it exists today (may not exist if startup
business)
4. Comparing the company's positioning to its competitors' to identify viable areas for
differentiation
5. Developing a distinctive, differentiating and value-based positioning concept
6. Creating a positioning statement with key messages and customer value propositions to
be used for communications development across the organisation
Positioning concepts
More generally, there are three types of positioning concepts:
1. Functional positions
o

Solve problems

Provide benefits to customers

Get favorable perception by investors (stock profile) and lenders

2. Symbolic positions
o

Self-image enhancement

Ego identification

Belongingness and social meaningfulness

Affective fulfillment

3. Experiential positions
o

Provide sensory stimulation

Provide cognitive stimulation

Brand elements
Brands typically are made up of various elements, such as

Name: The word or words used to identify a company, product, service, or concept.

Logo: The visual trademark that identifies the brand.

Tagline or Catchphrase: "The Quicker Picker Upper" is associated with Bounty paper
towels.

Graphics: The dynamic ribbon is a trademarked part of Coca-Cola's brand.

Shapes: The distinctive shapes of the Coca-Cola bottle and of the Volkswagen Beetle are
trademarked elements of those brands.

Colors: Owens-Corning is the only brand of fiberglass insulation that can be pink.

Sounds: A unique tune or set of notes can denote a brand. NBC's chimes are a famous
example.

Scents: The rose-jasmine-musk scent of Chanel No. 5 is trademarked.

Tastes: Kentucky Fried Chicken has trademarked its special recipe of eleven herbs and
spices for fried chicken.

Movements: Lamborghini has trademarked the upward motion of its car doors.

Customer relationship management

Global Branding
Marketers in India will catch up with the rest of the world, and adopt a global mindset.
The mantrathink global; act local will be extended to brand global; market local. They
seek to evolve brands that would have universal trust, appeal and a single-minded vision.
Marketing programs that support the brands will respect local culture and global fashions.

Building a global brand requires more than just launching a web site that's accessible from
almost anywhere in the world.
From language missteps to misunderstanding cultural norms, veteran branding expert Barbara E.
Kahn has seen it all when it comes to the missteps of launching a brand across borders. Here, she
shares five tips to help entrepreneurs avoid the pitfalls.
Related: The Secrets of 7 Successful Brands
1. Understand customer behavior.
Just because consumers have certain buying preferences or habits in one culture, doesn't mean
that such preferences are universal. "It's astonishing how many retailers haven't made it because
they haven't studied how consumers shop," she says.
In her book, Global Brand Power (Wharton Digital Press, 2013), Kahn cites Walmart's mistake
in choosing locations in China that were near industrial parks when consumers were used to
shopping closer to home instead of near work.
2. Position yourself properly.
Good brand positioning includes truly understanding your competition and then looking at your
competitive advantage. Who are the providers of similar products and services that you sell in
this country? They may not be the same providers as in the U.S.

For example, if you sell athletic clothing, look at where people are buying their athletic clothing.
It could be from specialty stores, online retailers, or sporting goods stores. If you have a high-end
brand and you're going into a market where the preferred buying location is discount retailers, it
may take a different strategy from the one you use in the U.S. "You need to understand how
people shop and how your brand will fit into that mix," she says.
3. Know how your brand translates.
A clever brand or product name in one language may translate into an embarrassing misstep in
another. For example, the French cheese brand Kiri changed its name to Kibi in Iran because the
former name means rotten or rank in Farsi -- not exactly the association you want for cheese.
In addition to ensuring that your brand translates well into other languages, consider which
colors are favored in various markets. In the U.S., blues and greens are favored, while reds and
yellows are frequently used in some Latin American countries and may be appealing and familiar
to audience members from those areas.
4. Think broadly.
Since your company may need to expand into offering new products based on regional market
demands, it's important that your company name be broad enough to accommodate those
changes.
"Boston Chicken changed its name to Boston Market because it had expanded into other foods,"
Kahn says. If your company name is Brian's Computers for example, consider whether that will
be limiting in other markets if you also sell peripherals and services, she says.
5. Find good partners.
Work with your attorney to protect your intellectual property overseas, filing the appropriate
trademark and patent protections in the U.S. and elsewhere, if applicable. Find trade
representatives who come recommended from colleagues or state or federal trade offices, since
they're more likely to be reputable.
UNIT III BRAND COMMUNICATIONS 8
Brand image Building Brand Loyalty programmes Brand Promotion Methods Role of
Brand ambassadors, celebraties On line Brand Promotions.

Brand Image:
The impression in the consumers' mind of a brand's total personality (real and imaginary
qualities and shortcomings). Brand image is developed over time through advertising campaigns
with a consistent theme, and is authenticated through the consumers' direct experience. See also
corporate image.
Brand image is the current view of the customers about a brand. It can be defined as a unique
bundle of associations within the minds of target customers. It signifies what the brand presently
stands for. It is a set of beliefs held about a specific brand. In short, it is nothing but the
consumers perception about the product. It is the manner in which a specific brand is positioned
in the market. Brand image conveys emotional value and not just a mental image. Brand image is
nothing but an organizations character. It is an accumulation of contact and observation by
people external to an organization. It should highlight an organizations mission and vision to all.
The main elements of positive brand image are- unique logo reflecting organizations image,
slogan describing organizations business in brief and brand identifier supporting the key values.
Brand image is the overall impression in consumers mind that is formed from all sources.
Consumers develop various associations with the brand. Based on these associations, they form
brand image. An image is formed about the brand on the basis of subjective perceptions of
associations bundle that the consumers have about the brand. Volvo is associated with safety.
Toyota is associated with reliability.
The idea behind brand image is that the consumer is not purchasing just the product/service but
also the image associated with that product/service. Brand images should be positive, unique and
instant. Brand images can be strengthened using brand communications like advertising,
packaging, word of mouth publicity, other promotional tools, etc.
Brand image develops and conveys the products character in a unique manner different from its
competitors image. The brand image consists of various associations in consumers mind attributes, benefits and attributes. Brand attributes are the functional and mental connections with
the brand that the customers have. They can be specific or conceptual. Benefits are the rationale
for the purchase decision. There are three types of benefits: Functional benefits - what do you do

better (than others ),emotional benefits - how do you make me feel better (than others), and
rational benefits/support - why do I believe you(more than others). Brand attributes are
consumers overall assessment of a brand.
Brand Loyalty
In marketing, brand loyalty refers to a consumer's commitment to repurchase or otherwise
continue using a particular brand by repeatedly buying a product or service.
The American Marketing Association defines brand loyalty as: 1. ) "The situation in which a
consumer generally buys the same manufacturer-originated product or service repeatedly over
time rather than buying from multiple suppliers within the category" (sales promotion
definition). 2. ) "The degree to which a consumer consistently purchases the same brand within a
product class" (consumer behavior definition).
Aside from a consumer's ability to repurchase a brand, true brand loyalty exists when a. ) the
customer is committed to the brand, and b. ) the customers have a high relative attitude toward
the brand, which is then exhibited through repurchase behavior. For example, if Joe has brand
loyalty to Company A, he will purchase Company A's products even if Company B's products
are cheaper and/or of a higher quality.
Brand loyalty is viewed as a multidimensional construct, determined by several distinct
psychological processes, such as the customers' perceived value, brand trust, satisfaction, repeat
purchase behavior, and commitment. Commitment and repeated purchase behavior are
considered as necessary conditions for brand loyalty, followed by perceived value, satisfaction,
and brand trust.
Philip Kotler defines four customer-types that exhibit similar patterns of behavior:

a) Hardcore Loyals, who buy the brand all the time

b) Split Loyals, loyal to two or three brands

c) Shifting Loyals, moving from one brand to another

d) Switchers, with no loyalty (possibly "deal-prone," constantly looking for bargains, or

"vanity prone," looking for something different).

Benefits of Brand Loyalty

The benefits of brand loyalty are longer tenure (or staying a customer for longer), and lower
sensitivity to price. Recent research found evidence that longer-term customers were indeed less
sensitive to price increases.
According to Andrew Ehrenberg, consumers buy "portfolios of brands. " They switch regularly
between brands, often because they simply want a change. Thus, "brand penetration" or "brand
share" reflects only a statistical chance that the majority of customers will buy that brand next
time as part of a portfolio of brands. It does not guarantee that they will stay loyal.
By creating promotions and loyalty programs that encourage the consumer to take some sort of
action, companies are building brand loyalty by offering more than just an advertisement.
Offering incentives like big prizes creates an environment in which customers see the advertiser
as more than just the advertiser. Individuals are far more likely to come back to a company that
uses interesting promotions or loyalty programs than a company with a static message of "buy
our brand because we're the best. "
Popular Loyalty Programs
Below are some of the most popular Loyalty Programs that are currently being used by major
companies as a means of engaging their customers beyond traditional advertising.
Sweepstakes and Advergames

Branded digital games that engage consumers with prize incentives

Contests

Skill tests and user-generated promotions such as video and photo contests

Social Media Applications and Management

Develop promotions and offers within social media channels

Ongoing management and maintenance of brand Facebook pages and other social media

Customer Rewards Programs

Online points programs earn prizes for incremental purchase behavior (e.g., JetBlue's
TrueBlue and American Airlines's AAdvantage frequet flyer programs)

My Coke Rewards, Pepsi Stuff, and the Marriott Rewards loyalty programs

Promotional auctions bid for prizes with points earned from incremental purchase
behavior

Brand Promotion
Brand promotion is a common marketing strategy intended to increase product awareness,
customer loyalty, competitiveness, sales and overall company value. Businesses use it not only to
show what is different or good about themselves and what's for sale, but also to keep that image
alive for consumers. It usually focuses on elements that can stand the test of time, although
businesses do adjust promotions based on what is happening in the market. The efforts required
to be effective with these techniques require that marketers be passionate about what they're
doing.
Objectives of Brand promotion
The main objectives of brand promotion are :
(i) To Promote Information: The firm provides the relevant information about its various brands
offered in the market. Information relates to features, prices, special schemes, etc. of the brands.
(ii) To Differentiate the Product: Another main objective of brand promotion is 'brand
differentiation' which means convincing the customers about the unmatchable features or merits
of the particular brand. For example, Pepsi differentiates its brand by using the slogan "The
choice of a new generation". Such differentiation helps to create 'Brand Loyalty' which means
consumers are faithful to and continue to prefer a particular brand, e.g., Lux soap.

(iii) To Increase Demand: Brand promotion efforts aim at stimulating demand for a product.
They persuade customers to buy more and more of the product so as to increase its sales and
market share.
(iv) To Build Brand Equity: Brand equity means the power and value that a brand adds to a
product. The utility of the brand is emphasized. Status oriented advertisements highlight the
value of the brand and pride in its ownership. For example, utility of owning a Mercedes Benz
car or LG air conditioner.
(v) To Stabilize Sales: Seasonal, cyclical and other fluctuations in demand affect sales. Brand
promotion efforts seek to stabilize sales by minimizing the impact of such fluctuations. For
example, Nescafe promoted its new brand of 'iced coffee' to increase sales during summer.
(vi) To Offset Competitors' Marketing Efforts: In a highly competitive market, even a wellestablished brand has to be promoted to retain market share. For example, Coca Cola and Pepsi
keep on repeating their advertisements for their own brands of soft drinks so as to offset each
other's efforts.
(vii) To Build Image: Brand promotion is also aimed at creating a positive image of the company
offering its brands in the market. A company can build its prestige and goodwill by offering
quality brands at reasonable prices and through satisfactory after-sale service
Methods of Brand Promotion:
Create a brand image, or logo. Widespread brand recognition is your goal, as it will give your
business credibility and inspire others to spread the word about your business. Grow your brand
by placing your logo in your business stationary, business cards, email signatures, brochures,
signs, website and merchandising materials.
Network. Meeting professionals from other, related businesses is an effective form of business
promotion, as it provides you with opportunities to learn about your competitors, ask for
referrals, form mutually beneficial partnerships in complementary industries and spread
awareness about your business throughout a group of like-minded people. Network with other

professionals in the following ways:

Attend networking group meetings. You can find networking groups and clubs on the
Internet, in newspapers and in trade publications.

Introduce yourself to people at the meetings. Explain what it is your business does, what
you offer that makes you stand out from your competition and what you are looking for
in business relationships.

Ask relevant questions during group discussions. In addition to promoting your business,
you can learn a lot at networking meetings. Additionally, asking open-ended questions
encourages others to participate in the conversation, and sets you up for more
introductions.

Advertise. Consider these methods for advertising your business:

Signs. You may opt for storefront signs, billboards, marquee boards or street-side yard
signs.

Print. Place print ads in magazines, newspapers, coupon books, trade journals and
industry magazines. Choose print mediums that are suited to your business. For example,
if you run a technology parts recycling warehouse, then you may consider placing ads in
computer classifieds and technology magazines.

Commercials. Television and radio commercials are effective ways to promote your
business to a broad audience, but they are relatively costly forms of advertising.

Build business partnerships with other organizations. In effect, piggyback off the success of
another business. Taco Bell has recently unveiled the Doritos Locos Taco, which is a branding
coup for both Taco Bell and Doritos. Whenever you think of one brand, the other brand comes to
mind, and vice-versa. Business partnerships can be very effective advertising tools.
Rely on the power of social networks. Social networks have become the new darling of
advertising because much of the legwork is being done by dedicated fans, for free. You could pay
someone to advertise for you, or you could establish a social community of fans who advertise
by word of mouth, at little or no cost. What's it going to be?

Offer freebies. Pass out merchandise with your company's name and/or logo on it to everyone
you meet at networking events, trade shows, client meetings and even personal social gatherings.
Things like pens, magnets and calendars are good merchandising ideas, as these tend to stay in
use, and within view, for extensive periods of time.
Develop relationships with your customers. Customers are people not numbers and it is
important that you put consideration and effort into building personal relationships with them.
For example, when you send out Christmas cards each year, you not only gain customer loyalty
but you also inspire customers to promote your business to the people they know.\
Brand Ambassador
Brand ambassador is a marketing term for a person employed by an organization or company
to promote its products or services within the activity known as branding. The brand ambassador
is meant to embody the corporate identity in appearance, demeanor, values and ethics.[1] The key
element of brand ambassadors lies in their ability to use promotional strategies that will
strengthen the customer-product/service relationship and influence a large audience to buy and
consume more. Predominantly, a brand ambassador is known as a positive spokesperson
appointed as an internal or external agent to boost product/service sales and create brand
awareness. Today, brand ambassador as a term has expanded beyond celebrity branding to self
branding or personal brand management. Professional figures such as good-will and non-profit
ambassadors, promotional models, testimonials and brand advocates have formed as an
extension of the same concept, taking into account the requirements of every company
Celebrity branding is a type of branding, or advertising, in which a celebrity becomes a brand
ambassador and uses his or her status in society to promote a product, service or charity, and
sometimes also appears as a promotional model.
Celebrity branding can take several different forms, from a celebrity simply appearing in
advertisements for a product, service or charity, to a celebrity attending PR events, creating his or
her own line of products or services, or using his or her name as a brand. The most popular forms
of celebrity brand lines are for clothing and fragrances. Many singers, models and film stars now
have at least one licensed product or service which bears their name.

Celebrities often provide voice-overs for advertising. Some celebrities have distinct voices which
are recognizable even when they are not visible on-screen. This is a more subtle way to add
celebrity branding to a product or service. An example of such an advertising campaign is Sean
Connery's voice-over for Level 3 Communications.
The use of a celebrity or sports professional can have a huge impact on a brand. For example,
sales of Nike golf apparel and footwear doubled after Tiger Woods was signed up on a
sponsorship deal.
More recently, advertisers have begun attempting to quantify and qualify the use of celebrities in
their marketing campaigns by evaluating their awareness, appeal, and relevance to a brand's
image and the celebrity's influence on consumer buying behavior.
Celebrity branding is a global phenomenon and it assumes paramount importance in countries
like India, where celebrities are given the status of demi Gods by the masses. There is a certain
correlation between successful celebrity branding and brand endorsements.
Online Brand Promotion
Email
Email marketing is still one of the most effective way of communicating with your customers or
potential customers online if you have them in your database. A best practice is to divide your
database into segments, for example: not likely to make a purchase, likely to purchase, recently
purchased, purchased in the past. Tailor your messaging appropriately to your database and use
all the data tracked by modern cloud email clients like MailChimp, Constant Contact, and
Campaign Monitor to your advantage. Dont be afraid to get creative because in the time of
automated nurturing, only the most relevant and attention-grabbing (in good taste) stand out.
Forums/Review Sites
Theres a forum for that. Chances are there are people talking about products like yours on many
of the review deal sites or forums online today. The best way to find relevant reviews is to do a
quick search for [your product category] forum or [your brand] review. Also be sure to
check out generic discussion pavillions like LinkedIn, Amazon, and Quora.

Responding to a forum post (especially a negative one) in a professional and helpful manner will
make your brand look responsible and might even help drive traffic to your site. No brand will
please all of its customers, but the ones that stand out go the extra mile to unruffle the feathers of
unsatisfied customers and leave a great impression.
Social media/Blogs
Finding the right mix of content has long been a challenging art to master and recently, it has
been trending science. Coined by Joe Pulizzi of the Content Marketing Institute, the 4-1-1 rule is
a good rule of thumb to use in social media: Every 6 pieces of content should be made up of 4
pieces of new content, 1 recycled piece, and 1 self-promotional piece.
A great way to begin to ramp up your social media presence is by simply sharing and socializing
more often and in more places. Join and be active in relevant groups. Your followers will come
as you become more integrated in communities.
Banner ads and remarketing
Youve probably seen the banner ads of many sites youve visited recently on sites that carry top
and/or sidebar ad spaces. Banner ads are an effective way to stay top of mind of your customers
and drive remarketing traffic to your page. Again, the theme here is relevancy. An awesome way
to stand out is to use the cookie information of specific pages your customers have visited and
display the corresponding product they were browsing right there in the banner ad. When used
knowledgeably, banner ads can yield tremendous ROI.
UNIT IV BRAND EXTENSION 9
Brand Adoption Practices Different type of brand extension Factors influencing Decision for
extension Re-branding and re-launching
Adoption:
Five-stage mental process all prospective customers go through from learning of a new product
to becoming loyal customers or rejecting it. These stages are (1) Awareness: prospects come to
know about a product but lack sufficient information about it; (2) Interest: they try to get more
information; (3) Evaluation: they consider whether the product is beneficial; (4) Trial: they make
the first purchase to determine its worth or usefulness; (5) Adoption/Rejection: they decide to

adopt it, or look for something else. Another explanation is that the customer moves from a
cognitive state (being aware and informed) to the emotional state (liking and preference) and
finally to the behavioral or conative state
Adoption Process

It is a cognitive process through which all the consumers pass before actually purchasing the
product. It is divided into 5 stages:
a. Awareness:
When the potential consumers are apprised of the product but do not have a detailed knowledge
about it.
b. Interest:
When the product catches the consumers attention and she herself tries to discover more and
more about it.
c. Evaluation:
In this stage, the consumer has enough knowledge about the product and she considers its
relative benefits and evaluates it in terms of various factors as cost, aesthetics, competitors
offering, etc.
d. Trial:
This is the stage when the consumer experiences the product and judges whether the claims are
correct or not. Trials can be generated by sampling or by the consumer herself buying the
product. Many new brands aim to reach this stage as soon as possible.
e. Adoption or Rejection decision:

This is the stage when the consumer has made up her mind whether to remain with the product or
switch back to her earlier product.
Brand Extension:
Brand extension or brand stretching is a marketing strategy in which a firm marketing a
product with a well-developed image uses the same brand name in a different product category.
The new product is called a spin-off. Organizations use this strategy to increase and leverage
brand equity (definition: the net worth and long-term sustainability just from the renowned
name). An example of a brand extension is Jello-gelatin creating Jello pudding pops. It increases
awareness of the brand name and increases profitability from offerings in more than one product
category.
A brand's "extendibility" depends on how strong consumer's associations are to the brand's
values and goals. Ralph Lauren's Polo brand successfully extended from clothing to home
furnishings such as bedding and towels. Both clothing and bedding are made of linen and fulfill a
similar consumer function of comfort and hominess. Arm & Hammer leveraged its brand equity
from basic baking soda into the oral care and laundry care categories. By emphasizing its key
attributes, the cleaning and deodorizing properties of its core product, Arm & Hammer was able
to leverage those attributes into new categories with success. Another example is Virgin Group,
which was initially a record label that has extended its brand successfully many times; from
transportation (aeroplanes, trains) to games stores and video stores such a Virgin Megastores.
In the 1990s, 81 percent of new products used brand extension to introduce new brands and to
create sales. Launching a new product is not only time-consuming but also needs a big budget to
create brand awareness and to promote a product's benefits. Brand extension is one of the new
product development strategies which can reduce financial risk by using the parent brand name
to enhance consumers' perception due to the core brand equity.
Types of brand extension
Brand extension research mainly focuses on consumer evaluation of extension and attitude
toward the parent brand. In their 1990 model, Aaker and Keller provide a sufficient depth and
breadth proposition to examine consumer behaviour and a conceptual framework. The authors

use three dimensions to measure the fit of extension. First, the Complement refers to
consumers taking two product classes (extension and parent brand product) as complementary in
satisfying their specific needs.[10] Secondly, the Substitute indicates two products have the
same user situation and satisfy the same needs, which means the product classes are very similar
and that the products can act to replace each other. Lastly, the Transfer describes the
relationship between extension product and manufacturer which reflects the perceived ability of
any firm operating in the first product class to make a product in the second class The first two
measures focus on the consumers demand and the last one focuses on the firms perceived
ability.
From the line extension to brand extension, however, there are many different types of extension
such as "brand alliance",[12] co-branding[13][14] or brand franchise extension. Tauber (1988)
suggests seven strategies to identify extension cases such as product with parent brands benefit,
same product with different price or quality, etc. In his suggestion, it can be classified into two
category of extension; extension of product-related association and non-product related
association. Another form of brand extension is a licensed brand extension. In this scenario, the
brand-owner works with a partner (sometimes a competitor), who takes on the responsibility of
manufacturing and sales of the new products, paying a royalty every time a product is sold.

Types of Brand Extensions

A brand name can be extended in three ways:
1. Extended to other items in the same product line
Sunrise coffee was extended to other Sunrise Premium and Sunrise Extra coffee catering to
different segments. This is called line extension. All are products in the same line-coffee.
2. Extended to items in a related product lineMaggi initially was a brand of noodles. Later, the
brand name was Extended to other product lines in the related category food-Maggi Ketchup,
Maggi Soup, etc. It is a case food items. This is called related brand extension or category
extension.

3. Extended to items in an unrelated product line

The brand name Enfield, initially used for motorcycles, was later Extended to television and
gensets. Here, the products belong to different and unrelated categories. It is a case of unrelated
brand extension, or outside the category extension.
2. Extending a Brand name to products in a related line (Category extension)
Here, the brand name is extended over different products, but the products are related in some
way. In order words, they belong to a category. The Maggie example cited earlier fits this
description. Dettol can be cited as another example.
Dettol :For years, Dettol has been a well known brand of Antiseptic lotion. When the company,
Reckitt & Colman, decided to expand into new antiseptic products, they decided to launch them
under the Dettol brand name, i.e., as brand extensions in related category. They felt that it would
enable the new products to gain immediate identification as sister products of Dettol and they
would easily move under the Dettol name. The Dettol brand name was extended to number of
related products as shown below:
Dettol soap

Antiseptic Soap

Dettol Plaster

Dettol Hand wash

Antiseptic Bandage
Antiseptic Wash

3. Extending a Brand Name to Products in an unrelated line (Outside category extension) :

Here, the Brand Name is extended across completely new and unrelated products, falling under
all together different product categories. It is here that brand extension is put to the severest test
and the value of the brand is leveraged to the maximum. In other words, it is when a brand name
is extended to products in unrelated lines that the reward, as well as the risk, is the maximum.
The reward arises from the substantial savings in the cost and time involved in developing and
all together new brand. We will understand this dimension when we analyses the basic condition
for success of brand extensions.

ReBranding
Rebranding is a marketing strategy in which a new name, term, symbol, design, or combination
thereof is created for an established brand with the intention of developing a new, differentiated
identity in the minds of consumers, investors, and competitors. [1][2] Often, this involves radical
changes to a brand's logo, name, image, marketing strategy, and advertising themes. Such
changes typically aim to reposition the brand/company, occasionally to distance itself from
negative connotations of the previous branding, or to move the brand upmarket; they may also
communicate a new message a new board of directors wishes to communicate.
Rebranding can be applied to new products, mature products, or even products still in
development.
Product rebranding
As for product offerings, when they are marketed separately to several target markets this is
called market segmentation. When part of a market segmentation strategy involves offering
significantly different products in each market, this is called product differentiation. This market
segmentation/product differentiation process can be thought of as a form of rebranding. What
distinguishes it from other forms of rebranding is that the process does not entail the elimination
of the original brand image. Dexxa computer mice are rebranded Logitech devices sold at a
lower price by Logitech in the low-end market segment without undercutting their mid-range
products. Rebranding in this manner allows one set of engineering and QA to be used to create
multiple products with minimal modifications and additional expense.
UNIT V BRAND PERFORMANCE 10
Measuring Brand Performance Brand Equity Management - Global Branding strategies - Brand
Audit Brand Equity Measurement Brand Leverage Role of Brand Managers Branding challenges & opportunities Case Studies.

Brand Equity
Brand equity is a phrase used in the marketing industry which describes the value of having a
well-known brand name, based on the idea that the owner of a well-known brand name can
generate more money from products with that brand name than from products with a less well
known name, as consumers believe that a product with a well-known name is better than
products with less well-known names.
Some marketing researchers have concluded that brands are one of the most valuable assets a
company has,[5] as brand equity is one of the factors which can increase the financial value of a
brand to the brand owner, although not the only one. Elements that can be included in the
valuation of brand equity include (but not limited to): changing market share, profit margins,
consumer recognition of logos and other visual elements, brand language associations made by
consumers, consumers' perceptions of quality and other relevant brand values.
Consumers' knowledge about a brand also governs how manufacturers and advertisers market
the brand.[7][8] Brand equity is created through strategic investments in communication channels
and market education and appreciates through economic growth in profit margins, market share,
prestige value, and critical associations. Generally, these strategic investments appreciate over
time to deliver a return on investment. This is directly related to marketing ROI. Brand equity
can also appreciate without strategic direction. A Stockholm University study in 2011 documents
the case of Jerusalem's city brand. The city organically developed a brand, which experienced
tremendous brand equity appreciation over the course of centuries through non-strategic
activities. A booming tourism industry in Jerusalem has been the most evident indicator of a
strong ROI.
Brand equity is strategically crucial, but famously difficult to quantify. Many experts have
developed tools to analyze this asset, but there is no universally accepted way to measure it. As
one of the serial challenges that marketing professionals and academics find with the concept of
brand equity, the disconnect between quantitative and qualitative equity values is difficult to
reconcile. Quantitative brand equity includes numerical values such as profit margins and market
share, but fails to capture qualitative elements such as prestige and associations of interest.

Overall, most marketing practitioners take a more qualitative approach to brand equity because
of this challenge
Construction
There are many ways to measure a brand. Some measurements approaches are at the firm level,
some at the product level, and still others are at the consumer level.
Firm Level: Firm level approaches measure the brand as a financial asset. In short, a calculation
is made regarding how much the brand is worth as an intangible asset. For example, if you were
to take the value of the firm, as derived by its market capitalizationand then subtract tangible
assets and "measurable" intangible assetsthe residual would be the brand equity.[5] One highprofile firm level approach is by the consulting firm Interbrand. To do its calculation, Interbrand
estimates brand value on the basis of projected profits discounted to a present value. The
discount rate is a subjective rate determined by Interbrand and Wall Street equity specialists and
reflects the risk profile, market leadership, stability and global reach of the brand. [12] Brand
valuation modeling is closely related to brand equity, and a number of models and approaches
have been developed by different consultancies. Brand valuation models typically combine a
brand equity measure (e.g.: the proportion of sales contributed by "brand") with commercial
metrics such as margin or economic profit.
Product Level: The classic product level brand measurement example is to compare the price of
a no-name or private label product to an "equivalent" branded product. The difference in price,
assuming all things equal, is due to the brand. [13] More recently a revenue premium approach has
been advocated.[4] Marketing mix modeling can isolate "base" and "incremental" sales, and it is
sometimes argued that base sales approximate to a measure of brand equity. More sophisticated
marketing mix models have a floating base that can capture changes in underlying brand equity
for a product over time.
Consumer Level: This approach seeks to map the mind of the consumer to find out what
associations with the brand the consumer has. This approach seeks to measure the awareness
(recall and recognition) and brand image (the overall associations that the brand has). Free
association tests and projective techniques are commonly used to uncover the tangible and

intangible attributes, attitudes, and intentions about a brand. Brands with high levels of
awareness and strong, favorable and unique associations are high equity brands.
All of these calculations are, at best, approximations. A more complete understanding of the
brand can occur if multiple measures are used.
Positive brand equity vs. negative brand equity
Brand equity is the positive effect of the brand on the difference between the prices that the
consumer accepts to pay when the brand known compared to the value of the benefit received.
There are two schools of thought regarding the existence of negative brand equity. One
perspective states brand equity cannot be negative, hypothesizing only positive brand equity is
created by marketing activities such as advertising, PR, and promotion. A second perspective is
that negative equity can exist, due to catastrophic events to the brand, such as a wide product
recall or continued negative press attention (Blackwater or Halliburton, for example).
Colloquially, the term "negative brand equity" may be used to describe a product or service
where a brand has a negligible effect on a product level when compared to a no-name or private
label product.
Family branding vs. individual branding strategies
The greater a company's brand equity, the greater the probability that the company will use a
family branding strategy rather than an individual branding strategy. This is because family
branding allows them to leverage the equity accumulated in the core brand. Aspects of brand
equity include: brand loyalty, awareness, association[14] and perception of quality.
Examples
In the early 2000s in North America, the Ford Motor Company made a strategic decision to
brand all new or redesigned cars with names starting with "F." This aligned with the previous
tradition of naming all sport utility vehicles since the Ford Explorer with the letter "E." The
Toronto Star quoted an analyst who warned that changing the name of the well known Windstar
to the Freestar would cause confusion and discard brand equity built up, while a marketing

manager believed that a name change would highlight the new redesign. The aging Taurus,
which became one of the most significant cars in American auto history, would be abandoned in
favor of three entirely new names, all starting with "F," the Five Hundred, Freestar, and Fusion.
By 2007, the Freestar was discontinued without a replacement. The Five Hundred name was
thrown out and Taurus was brought back for the next generation of that car in a surprise move by
Alan Mulally.
In practice, brand equity is difficult to measure. Because brands are crucial assets, however, both
marketers and academic researchers have devised means to contemplate their value. [10] Some of
these techniques are described below.
Global Marketing Strategies:
1 Build a strong, consistent brand culture
In the past, a rigid corporate structure was an important element of the global brand. Local
markets were in charge of developing their own brand strategies.
However, in recent years building a consistent and strong brand culture that remains familiar to
consumers wherever it is in the world has become a priority. Tony Effik, chief strategy officer at
Publicis Modem, explains: A brand needs a single view of the world, a single philosophy.
The rise of digital channels has shifted the brand emphasis from structure to culture, believes
Neil Taylor, creative director at language consultancy The Writer. He notes: Social media and
viral marketing stop brands doing what they used to do, which was to manage brands in a
command-and-control sort of way.
It becomes more important that your brand reflects your culture, rather than your guidelines.
The brands that have done it well are those that have a strong culture of their own, says Taylor.
ASmallWorld is an example of a business that has created a brand which is consistent around the
globe (see case study below).
Language is an important element in ensuring a consistent brand culture, he adds, citing Innocent
Drinks as a good example of a company that has successfully retained a distinctive tone of voice

across markets. You read Innocent Drinks in French and it feels just as playful and cute as
Innocent in English. Its the same personality.
2 Be borderless in your marketing
With the abundance of digital platforms, it is no longer possible for brands to follow different
brand strategies in different countries. Companies are being forced to adopt a more unified
marketing approach.
Marketers need to rethink the term glocal, explains Publicis Modems Tony Effik. Theodore
Levitts think global, act local slogan doesnt work in a digital age in the same way, he argues.
The way we do global campaigns had to change because digital doesnt respect borders,
particularly now with social media. What were finding is that as content moves across borders,
brand stories are crossing over internationally.
3 Build yourself an internal hub
The need for a unified marketing team is more important than ever. Involving marketers from
across the global brand in the overall marketing strategy will engender overall cohesion, says
Kip Knight, president of Knight Vision Marketing, who has set up marketing academies for
global heavyweights such as PepsiCo and eBay while working at those companies.
He says: It doesnt work to simply hand somebody a strategy and say, well good luck with
that. They have to feel like theyve had a chance to vet it, to debate it, ideally in person, with
others that are equally responsible for the brand. Ultimately, theyve got to feel like they own it.
Its not my strategy; its our strategy.
By taking this approach, marketers are much more likely to focus on the same goals for the
brand, as opposed to feeling like theyve got to go and create their own version of this brand in
the market, he adds.
4 Adopt a glocal structure
Two major global brands have recently challenged the local marketing structure that had become
the norm. Instead they are adopting a more regional structure in a bid to become more unified.

Coke has scrapped its GB marketing director and simplified its operations in Europe by reducing
the number of business units it has from ten to four.
Similarly, Kraft has decided that while a GB marketing director position will exist, marketing
will be led centrally from Europe.
A spokesperson for Coca-Cola explains: The restructuring of marketing is simply part of this
wider process. The changes will enable us to innovate more quickly and accelerate the increased
coordination in our marketing already taking place in Europe and globally.
The ability to be both global and local is paramount for successful international campaigns,
explains Wendy Clark, senior vice-president integrated marketing communications and
capabilities at Coca-Cola. Coca-Cola has a legacy of leveraging global scale and local
relevance. And we know how important it is to balance both.
The FIFA World Cup Campaign, and Cokes global Open Happiness campaign are examples of
how its marketing works on a global scale. They are created so that they work across all
territories, she adds.
5 Make consumers your co-creators
Durexs Valle thinks that social media has helped to create the perfect environment for
interactions. Its all about consumers advising each other, talking to each other, as well as
talking to the brand. It all happens on a global scale and it all happens at the same time.
Consumers are creating virals and content for Durex, which then becomes widely available
across the internet.
We cant have the illusion that because we are the manufacturers or the industry that we have
control because that isnt the case anymore. What makes the difference is the degree of
partnership. If we talk about a new way of operating or a new global brand, it will be a brand that
is asking for opinion, that listens to consumers and asks for co-creation.

Cokes Clark agrees that making space for consumers is now a must. At Coca-Cola, were
changing with our consumers. Were moving from polishing our content to perfection to leaving
room for our consumers to add their voice.
Brand Audit:
WHAT IS A BRAND AUDIT ?
A brand audit is a thorough examination of a brands current position in the market compared to
its competitors and a review of its effectiveness. It helps you determine the strength of your
brand together with its weaknesses or inconsistencies and opportunities for improvement and
new developments.
WHY DO A BRAND AUDIT ?
Strong brands make more money. The stronger your brand, the more powerful your
business. A powerful brand can inspire, captivate and engage your audience and consequently
dramatically increase your bottom line. However, even strong brands need a reality check or
health check to keep them on track.
A robust, consistent brand means you spend less money attracting new customers. Your current
customers keep coming back to you and you are able to charge a premium price for your goods
and services. A powerful brand also encourages referrals, be they online in the social engagement
arena or offline in physical form, and are consequently a critical part of the brand and its
profitability.
WHAT ARE THE DELIVERABLES OF A BRAND AUDIT ?
Essentially a brand audit will reveal how the customer perceives the brand, how the brand
compares to the competition and how the brand has performed. The outputs will typically
support the following:
Improve and refocus brand management efforts and congruency
Enhance internal staff brand awareness

 Sharpen marketing communications both on and offline

Provide insight into your brand architecture, business structure and brand portfolio
Evaluate and refocus your brand positioning
Ensure your brand collateral is congruent and delivers return on investment
Provide direction for your brand into the future
Secure and grow the value of your brand/business through consistent implementation of
recommendations derived from brand audit findings
WHAT'S INVOLVED IN A BRAND AUDIT ?
When initiating a brand audit its important to define the brand audit objectives. A brand audit
is typically a bespoke service because there are so many different components to an actual audit,
all of which may not be relevant or required to conduct an appropriate evaluation of your brand
performance.
The depth and extent of a brand audit is largely determined by the size of the brand, organisation,
market, timescales and budget together with the size and power of your brand relative to the
business and market in which you operate.
Brand Leverage
(Brand Leveraging) broadening a company's product range by introducing additional forms or
types of products under a brand name which is already successful in another category. Also
called Product Leveraging, Brand Extension and Franchise Extension.
Role of Brand Manager

Instilling a marketing led ethos throughout the business

Researching and reporting on external opportunities

Understanding current and potential customers

Managing the customer journey (customer relationship management)

Developing the marketing strategy and plan

Management of the marketing mix

Managing agencies

Measuring success

Managing budgets

Ensuring timely delivery

Writing copy

Approving images

Developing guidelines

Making customer focused decisions

Arguments for

Provides confidence to buyers: Consumers of all types and areas are today aspiring for
quality of life as a consequence of the development schemes of government and NGOs.
The literate and illiterate, the urban and rural, men and women prefer to buy branded
products. Even the poor prefer branded shampoos and hair oils sold in small volume
sachets. To customers, brands symbolize quality. They think the perceived risk in buying
will be lower.People are confident in buying brands like Lux, Lifebuoy, Fair& Lovely,
Horlicks, Boost, Bournvita, Parachute, Navaratna, Sunsilk, Clinic plus, and Meera.

Provides distinguishing identity: A brand name gives identity to a companys product.

It helps recognition and processing jobs easy for the company, distributors and
consumers. It thus saves costs and time in manufacturing, warehousing, transporting and
order processing for the company when selling. Distributors can reap similar benefits in
handling the products and selling them. Consumers find it easy to spot and select the

product. eople can distinguish Coca cola, Pepsi and Thumsup. Though all of them are
cola drinks, they differ in packaging and taste.

Image gives competitive advantage: Brands earn recognition and reputation by their
performance. The image helps the existing products in the line as well as new products. It
gives a commanding position to the marketer to charge higher prices than competitors
and to convince distributors to carry the products. Organisations interested in quality
office furniture buy from Godrej. Men interested in buying quality suits buy from
Raymond. Women interested in quality jewellery, buy from Tanishq.

Personality attracts consumers: Brands in course of their association with consumers

develop personalities. Advertisers take this opportunity to match the personality of brands
with that of prospects. It helps build brand loyaltya lasting companionship, a strong
bondage between a brand and consumer.

Marketers create a personality for the brands they sell. Raymond talks about complete
man. Fair& Lovely presents woman as an achiever. Pleasure scooty of Hero Honda asks
why boys should have all the fun and presents a liberated young girl.

Enhances value: By their popularity, brands not only enhance their value-in-use but also
value-in-exchange. A company that has built brand image over a period of time by its
incessant innovative efforts gets a reward for example, premium price offer for its brand
from a competitor or interested entrepreneur willing to own it.

Allows buying inertia-In industrial markets, quality, price and service are vital but in
practice there is one over-riding issue which is seldom mentioned as a reason for
choosing a company - that is because we have always bought from that company. Just
consider the number of years people in industry have used the same companies as their
main suppliers. It is not unusual for a supplier to have been used for five, ten or even
twenty years.

Arguments Against

Category competition: Most of the Indians are price conscious. As such, the competition
is more of categories rather than brands. 70% of the population living in villages are less

literate and gullible. As such, branded products are not affordable to many. The real
competition is not among brands but categories.

Notion of high prices: The common notion prevalent among rural and mid income
consumers is branded products are high-priced ones. As such, they shun brands.

Investment-returns doubtful: Brand building is not an easy task. It requires a great deal
of long range investment. It is to be supported by R & D investment, advertising budget
and dealer discounts. However, there is no assurance of returns. Many brands have failed.
Many are struggling hard despite the good images they have built over a time.

Image and personality are emotional nonsense: All the talk about brand personality
and image are psychological fantasies created by marketers. No product sells on brand
name. Only when it fulfils a need, does it stay and succeed in the market. The image of a
product or brand cannot help other brands. When a person buys the product, the
overriding considerations are cost (price and operational economics) and functional
benefits

Brand equity is sensible but not new: The brand equity concept replaces the old term
good will. It is not something new to be argued in favour of a brand. It is the
outcome of business built over a period. People trust Tata companies, Godrej, Mafatlal
etc., as they were operating long since and offering reasonably good products. Customers
prefer to buy from a local retailer who is known and sometimes buy on his or her
recommendation.
CASE STUDY
Tesco Goes High Tech

Moving up the value chain, it is now crafting products that will transform Tescos global
business, especially developing mobile applications that drive online sales.

There are a variety of mobile applications being developed from Tesco HSC. Tesco has
launched mobile grocery applications on the Android, iPhone, iPad, Nokia and Windows
7 platforms to enable the customer to shop while being mobile. These apps are
engineered and maintained at the Tesco HSC, Sandeep Dhar, CEO said.
The Android application was developed completely by the Tesco HSC mobile
engineering team and they have been involved in all feature releases after the initial
release. The iPhone app is the first Tesco mobile app and has seen more than two million
downloads since its launch. The mobile engineering team at the Bangalore centre has
grown to 20 from zilch in less than a years time.
Mobile commerce is a growing segment and is an additional channel of shopping for our
customers. In terms of sales, 8% of our online grocery orders touch a mobile phone with
about half these orders being completed 100% on the phone. Looking at e-commerce as a
whole, Tesco is UKs largest online retailer processing over five lakh orders a week,
Dhar says. Since 2004, Tesco HSC - that now houses 6,000 people - has provided the
technology and services backbone for a $100-billion business that serves 60 million
customers.
India provides support to Tesco operations in the UK, the US, major European countries
and growth markets such as Turkey, South Korea, Thailand and China. The shift from just
a support base to one that manages mission-critical IT applications came a few years ago.
Contributions out of the centre are now aligned to business goals of Tesco, says Dhar.
For example, he says, Tesco has deployed cutting-edge paperless picking technology at
its warehouses: Employees entering the mammoth
distribution centres use a wrist device that could be swiped at the entrance of these
warehouses. On swiping, each employee is given a task list for selection of a particular
product from a warehouse section and the information regarding the store to which the
products need to be delivered. Tesco HSC delivered the software and then ran this
function.

Tescos global parent saves up to $100 million every year by outsourcing tech work to
India. And it is this service centre that was responsible for implementing the Tesco
Operating Model (TOM) in 2008 that lies at the heart of the companys global drive and
consequent growth.
While Indias IT success story has spawned several instances where strategic moves
have been supported from India, Tescos is a first in retail where business processes (and
technology) meant for global implementation have been provided for, and sustained out
of an India back-office centre, says Dhar. As a result, stores from China to the US use
the same technology and process for buying merchandise, billing customers and
managing stores.
Tescos local centre has become a successful global player in technology as it realised
that the talent model is an important lever for captives to optimise in support of future
growth. This means aligning its talent model to building a global pool of end-to-end IT
skills and domain knowledge.
We have continued to build a strong workforce that is on the cutting edge of future
retailing concepts with the ability to develop and enhance retail solutions based on
functional and technical expertise. Our investment in talent development programmes has
resulted in positive scores on employee surveys that confirm employee engagement is a
leading indicator of our overall business success, he says. Dhar is excited about future
applications coming out of the centre.
A user-friendly feature is bar code scanning support. You can now scan any grocery item
with your iPhone and it will be automatically added to your Tesco Online shopping
basket. Right where the user sees an interesting product - at a friends place or on a train she can scan the bar code and add the product to the basket, buy it immediately or later.