Branding

What is a Brand?
A brand is a name, term, sign, symbol, or design which is intended to identify the goods or services of one seller or group of sellers and to differentiate them from those of competitors.

A brand is a promise
a sellers promise to deliver consistently a specific set of features, benefits and services to buyers. A short-hand that communicates powerfully and reduces uncertainty Differentiates goods or services from competing offerings

Brand
A name becomes a brand when consumers associate it with a set of tangible and intangible benefits that they obtain from the product or service It is the sellers promise to deliver the same bundle of benefits/services consistently to buyers

Managing Brands for Competitive Advantage

Branding is the process of creating that identity. Buyers respond to branding by making repeat purchases because they identify the item with the name of its producer. Brand: name, term, sign, symbol, design, or some combination that identifies the products of a firm while differentiating them from the competitions

Strong Brand
[If customers] continue to purchase the brand even in the face of competitors with superior features, price, and convenience, substantial value exists in the brand.

 Brand Loyalty
Brand recognition: Consumer awareness and identification of a brand. Brand preference: Consumer reliance on previous experiences with a product to choose that product again. Brand insistence: Consumer refusals of alternatives and extensive search for desired merchandise.

Types of Brands
Generic product: item characterized by plain label, with no advertising and no brand name Kerosene Manufacturers brand or National Brand: brand name owned by a manufacturer or other producer Lakme Private brands: brand name placed on products marketed by wholesalers and retailers inhouse brands of lifestyle

 Captive brands or distributors brand: national brands that are sold exclusively by a retail chain -STOP Family brand: brand name that identifies several related products Colgate tooth paste, Colgate tooth brush Independent brand: unique brand name that identifies a specific offering within a firms product line and that is not grouped under a family brand HUL, P&G

4.2. Strategic Brand Management

Brand Values of Top 10 Brands

Coca-Cola Microsoft IBM GE Intel Disney McDonalds Nokia Toyota Marlboro 67,394 Mrd. US $ 61,372 53,791 44,111 33,499 27,113 25,001 24,041 22,673 22,128
Business Week (2004)

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Brand Equity
When a commodity becomes a brand, it is said to have equity. The premium a brand can command in the market The difference between the perceived value and the intrinsic value

Brand Positioning
Use Situations: Rasna Tangible Benefits- Arial Micro cleaning system Number of uses- Nokia Hand set Head on Competitive positioning Wheel Nirma, Kinetic Honda Bajaj Life Style Positionong-Futura cookware

How to position the brand

Perceptual mapping

 Brand equity: added value that a respected, well-known brand name gives to a product in the marketplace.
Brand equity increases the likelihood that consumers will recognize the firms product when they make purchase decisions A strong brand equity can contribute to buyers perceptions of product quality Branding can also reinforce customer loyalty and repeat purchases

Determinants of Customer-Based Brand Equity

Customer is aware of and familiar with the brand Customer holds some strong, favorable, and unique brand associations in memory

Levels of meaning
Attributes Benefits Values Culture Personality Users

The Key to Branding

For branding strategies to be successful, consumers must be convinced that there are meaningful differences among brands in the product or service category. Consumer must not think that all brands in the category are the same. PERCEPTION = VALUE

Brand Power
Customer will change brands for price reasons Customer is satisfied. No reason to change. Customer is satisfied and would take pains to get the brand Customer values the brand and sees it as a friend Customer is devoted to the brand

Brand Equity Competitive Advantages

Reduced marketing costs Trade leverage Can charge a higher price Can easily launch brand extensions Can take some price competition

Managing Brand Equity

Brand Equity needs to be nourished and replenished. We must not flog the brand for equity to be diluted or dissipated Store brands

Strategic Brand Management

Strategic brand management involves the design and implementation of marketing programs and activities to build, measure, and manage brand equity. The strategic brand management process is defined as involving four main steps:
1) 2) 3) 4) Identifying and establishing brand positioning and values Planning and implementing brand marketing programs Measuring and interpreting brand performance Growing and sustaining brand equity

Advantages of branding
Easy for the seller to track down problems and process orders Provide legal protection of unique product features Branding gives an opportunity to attract loyal and profitable set of customers It helps to give a product category at different segments, having separate bundle of benefits It helps build corporate image It minimises harm to company reputation if the brand fails

Salience Dimensions
Depth of brand awareness
Ease of recognition & recall Strength & clarity of category membership

Breadth of brand awareness

Purchase consideration Consumption consideration

 Brand name: part of a brand consisting of words or letters that form a name that identifies and distinguishes a firms offering from those of its competitors Brand mark: symbol or pictorial design that identifies a product Generic name: branded name that has become a generically descriptive term for a class of products (e.g., nylon, aspirin, kerosene, and zipper)

Product Identification

 Trademark: legal protection which confers the exclusive right to user brand name, trade mark, and any slogan or product name abbreviation

Trade Dress: visual cues used in branding to create an overall look

The distinctive shape of Philips light bulbs and the McDonalds arches provide an example of trade dress

 Developing Global Brand Names and Trademarks

Potentially an acute problem for international marketers An excellent brand name or symbol in one country may prove disastrous in another Trademarks that are effective in their home countries may fare less well in other cultures

Packaging
A package serves three major objectives:
Protection against damage, spoilage, and pilferage Assistance in marketing the product Cost effectiveness

Labeling
Label Universal Product Code (UPC)

 Brand extension: application of a popular brand name to a new product in an unrelated product category

Line extensions refers to new sizes, styles, or related products Brand licensing: practice allowing other companies to use a brand name in exchange for a payment

Brand parity
Consumers buy from a set of acceptable/ preferred brands

Umbrella Brand
Products from different categories under one brand Dangerous to the brand if the principal brand fails Sometimes the company name is prefixed to the brand. In such cases the company name gives it legitimacy. The product name individualises it.

Naming the Brand

Product benefits Product qualities Easy to pronounce Should be distinctive Should not have poor meanings in other languages and countries

Brand strategy
Line extension existing brand name extended to new sizes in the existing product category Brand extension brand name extended to new product categories Multibrands new brands in the same product category New brands new product in a different product category Cobrands brands bearing two or more well known brand names

Brand Repositioning
This may be required after a few years to face new competition and changing customer preferences

Packaging
Includes the activities of designing and producing the container for a product Packaging is done at three levels - primary - secondary - shipping

Packaging as a marketing tool

Self service Consumer affluence Company and brand image innovation

Designing packaging
Packaging concepts Technical specifications Engineering tests Visual tests Dealer tests Consumer tests Packaging innovations Environmental considerations

Labels
Identification Grade classification Description of product Manufacturer identity Date of mfg., batch no. Instructions for use Promotion

Labels as a marketing tool

Labels need to change with time or packaging changes to give it a contemporary and fresh look

Brand Positioning
Define competitive frame of reference
Target market Nature of competition

Define desired brand knowledge structures

Points-of-parity
necessary competitive

Points-of-difference
strong, favorable, and unique brand associations

Issues in Implementing Brand Positioning

Establishing Category Membership Identifying & Choosing POPs & PODs Communicating & Establishing POPs & PODs Sustaining & Evolving PODs & POPs

Establishing Category Membership

Product descriptor Exemplar comparisons

Identifying & Choosing POPs & PODs

Desirability criteria (consumer perspective)
Personally relevant Distinctive & superior Believable & credible

Deliverability criteria (firm perspective)

Feasible Profitable Pre-emptive, defensible & difficult to attack

Major Challenges in Positioning

Find compelling & impactful points-ofdifference (MacMillan & McGrath, HBR, 97)
How do people become aware of their need for your product and service? How do consumers find your offering? How do consumers make their final selection? How do consumers order and purchase your product or service? What happens when your product or service is delivered? How is your product installed? How is your product or service paid for?

Major Challenges in Positioning

Find compelling & impactful points-ofdifference (cont.)
How is your product stored? How is your product moved around? What is the consumer really using your product for? What do consumers need help with when they use your product? What about returns or exchanges? How is your product repaired or serviced? What happens when your product is disposed of or no longer used?

 Create POPs and PODs in the face of attribute & benefit trade-offs
Price & quality Convenience & quality Taste & low calories Efficacy & mildness Power & safety Ubiquity & prestige Comprehensiveness (variety) & simplicity Strength & refinement

Communicating & Establishing POPs & PODs

Strategies to Reconcile Attribute & Benefit Trade-Offs

Establish separate marketing programs Leverage secondary association (e.g., cobrand) Re-define the relationship from negative to positive

Sustaining & Evolving POPs & PODs

Core Brand Values & Core Brand Proposition

Core Brand Values

Set of abstract concepts or phrases that characterize the 5-10 most important dimensions of the mental map of a brand. Relate to points-of-parity and points-ofdifference
Mental Map Core Brand Values Brand Mantra

Brand Mantras
A brand mantra is an articulation of the heart and soul of the brand.
Brand mantras are short three to five word phrases that capture the irrefutable essence or spirit of the brand positioning and brand values.

Nike
Authentic Athletic Performance

Disney
Fun Family Entertainment