Brand Management

Top 10 brands (Worldwide)

Source: Interbrand 2007

No.1($m 65,324)

No. 2 ($m 58,709)

No. 3 ($m 57,091)

No. 4 ($m 51,569)

No.5 ($m 33,696)

No.6 ($m 32,070)

No.7 ($m 30,954)

No.8 ($m 29,398)

No.9 ($m 29,210)

No.10 ($m 23,568)

Top 10 Trusted brands: India

Source: Brand Equity 30th May 2007

No.1

No. 2

No. 3

No. 4

No. 5

No. 6

No. 7

No. 8

No. 9

No. 10

What is a Brand?
Keller: A brand is a set of mental associations, held by the consumer, which add to the perceived value of a product or service

Mental associations
What is the brand territory (perceived competence; typical products or services; specific know-how)? - Gillette - Nokia - Dettol - Karims?

Mental associations
What is its level of quality (low; medium; premium; luxury)? What are its properties/merits? What is its most discriminating quality or benefit (also called perceived positioning)? - Burnol is for burns - Marlboro is about fierce independence - Hummer: Like nothing else

Mental associations
What typical buyer does the brand evoke? - Harley Davidson - Goa - Rolex What is the brand personality and brand imagery?

Brand Gestalt
Brand Personality Visual Appearance Country of Origin User Imagery

Physical Product Attributes Quality Uses

Tangible Benefits

Logo Brand Customer Relationship Emotional Benefits

Brand elements
Name Logos Symbol (Golden arches, Pug, Swoosh) Numbers (Maruti 800, Levis 501, James Bond 007, Nokia 1100) Packaging (Absolut vodka, Frooti in tetra packs) Sound: Harley Davidson

Brand elements
Sensation: Dettol - burning sensation and smell Slogan (Connecting people, Kuch meetha ho jaye) Typeface (Bata, Woodland, Airtel, Vodafone) URLs Spokespeople Advertising Jingles

Why are brand elements so carefully chosen?

Enhance brand awareness Facilitate brand associations Elicit positive judgments and feelings

Criteria for choosing brand elements

Memorable
Easily recognized Easily recalled

Transferable
Within/across categories Across geog/cultures

Meaningful
Descriptive Persuasive

Adaptable
Flexible Updatable

Likable
Fun/interesting Rich imagery Aesthetically pleasing

Protectable
Legally Competitively

Brand
A synthesis of all elements, physical, aesthetic, rational AND emotional End result =
appropriate differentiated relevant

Brand
The Coca-Cola Brand is 1800s Heritage Americana Sold Everywhere The Real Thing Battles with Pepsi Logo

Brand
The McDonalds Brand is

The Big Mac French Fries Fun For Children Golden Arches

Happy Meals Red,White & Yellow Restaurants Ronald McDonald Value for Money

The Product and the brand

Product
Kotler: A product is anything that can be offered to a market to satisfy a want or need

What is a Product?
Kotlers Five levels to a product:
Potential Product
All the augmentations and transformations that a product might ultimately undergo in the future Additional product attributes, benefits, or related services that distinguish the product from competitors Attributes and Characteristics that buyers normally expect and agree to when they purchase a product

Augmented Product

Expected Product Generic Product CORE BENEFIT

Basic Version of the product containing only those elements absolutely necessary to function. No distinguishing features. The Fundamental Need or Want that consumers satisfy by consuming the product or service

Product and brand

Product = Commodity
A product is a produced item always possessing these characteristics: Tangibility Attributes and Features

Brand = Mind Set

The sum of all communications and experiences received by the consumer and customer resulting in a distinctive image in their mind set based on perceived emotional and functional benefits

Product and brand

Products come to life, live and disappear, but brands endure e.g. Zen, Honda City, Bajaj A brand is the memory of the products A brand is less elastic than its product. Once created, like fast-setting concrete it is hard to change

Are leading brands the best products?

Not necessary To be the best means to compete in the premium tier which is rarely a large segment The brand with the best quality/price ratio is market leader

What can be branded?

Physical goods Services Retailers & Distributors Online products and services People and Organizations

What can be branded?

Sports, Arts, and Entertainment (ManU, movies) Geographic locations (India, Kerala) Ideas and causes (AIDS ribbons, WWF)

How do brands provide value?

Providing Value to the Firm

Enhance the effectiveness and efficiency of marketing programs - one of the rewards for risk- taking Decrease brand switching

Providing Value to the Firm

Higher prices and margins (Brand-involved consumers bargain less) Trade leverage Competitive advantage - create entry barriers

Providing Value to Customers

Short cut for interpreting, processing and storing information Gives confidence in the purchasing decision - reduces risk Enhances use satisfaction Invaluable - stable anchors in an otherwise changing world

Branding
Branding is about endowing products and services with the power of brand equity

Branding challenges and opportunities

Savvy customers

Branding
Love * Mark

TradeMark
Trust-Mark

Branding challenges and opportunities

Brand proliferation - line and brand extensions; new products and brands (Yahoo!, Google, Orkut, Colgate) Media fragmentation (Zipping, Zapping, Grazing, Channel Surfing)

Branding challenges and opportunities

Increased competition (Clothing, computers, Airlines) Increased costs Greater accountability

Brand Equity
Brand Equity is the added value endowed to products and services. This value may be reflected in how consumers think, feel, and act with respect to the brand, as well as the prices, market share, and profitability that the brand commands for the firm.

Brand Equity
. Brand equity is an important intangible asset that has psychological and financial value to the firm
Marketing Management: A South Asian Perspective, 12th edition - Kotler et al

Issues in Managing BE
The bases of brand equity Creating brand equity Managing brand equity over time Forecasting erosion of equity The extension decision Creating new names Complex families of names and sub names Brand equity measurement & evaluation

Strategic Brand Management

SBM involves the design and implementation of marketing programs and activities to build, measure, and manage brand equity

Brand-building skills
Creative, intelligent, innovative, venturesome, nurturing, disciplined and service focused Embody the brand itself Understand the underlying sources of brand value and protect and build on them Continually search out what makes the brand unique

Suggested reading

The New Strategic Brand Management by J.N.Kapferer. Chapter 1 & 2 Marketing Management: A South Asian Perspective, 12th edition - Kotler et al. Chapter: 10

Suggested reading
Strategic Brand Management by Kevin Lane Keller. Chapter 1