Strategic Brand

Management

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Brand Definitions
• What is Brand? ‘a name , sign, symbol used
to identify items or services of the seller(s)
and to differentiate them from goods of
competitors. (Dic of Business & Management)
• ‘brand is most valuable real estate in the
world, a corner of customer’s mind’
• ‘a collection of perceptions in the mind of the
consumer (and all other stake holders). If
properly managed these perceptions secure
long term revenue for the business and
create lasting value’

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Brand Element

• The key to create a brand is to be

able to choose a name, logo, symbol,
package design, or other attributes
that identify a product from other.
These different components of brand
that identify and differentiate can be
called brand elements

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Brands Vs Products

• Product is anything that can be offered to a

market for attention, acquisition, attention,
use or consumption that might satisfy need or
want. Product has various levels including
core benefit, generic product, expected
product, augmented product and potential
product but does not carry brand elements
(as of brands)

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Brand Vs Product

• Brand exist in mind

• These perception, if properly
managed, change consumer
behavior.
• The role of advertising is to sell and it
does this by positively influencing
people’s perceptions (the brand)

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Brands are valuable
• Coca-cola 75 billion $ (In 2000)
• Microsoft 70 billion $
• IBM 53 billion $
“if all coca cola assets are destroyed
overnite, whoever owned the coca cola
name could go into the bank and get loan
to rebuild everything” (VP coke)
“we all know that the Disney brand is our
most valuable asset” (CEO Disney

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How brands affect Consumer
Behavior?
• Increasing usage over time
• Less vulnerable to price based competition
• Requiring less marketing and sales investment
• Paying a premium over other customers

A Brand secures a future stream of profits for

the organization

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Branding Challenges In new
Era
• Savvy Consumers: Contemporary consumer has changed
wants and demands
• Brand Proliferation: Branding environment is proliferated
with new brands due to rise inline and brand extension.
• Media Fragmentation: Traditional advertising media has
converged into interactive media and other alternative
communication vehicles.
• Increased Competition: Market place has become more
competitive resulting into discounts and promotions.
• Increased Cost: Cost of introducing new brand or
supporting existing brand has rapidly increased resulting
in less attention towards brands.

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The Brand Equity Concept

• Brands with equity provides ‘an

ownable, trustworthy, relevent,
distinctive promise to consumers.
• Brand equity is willingness for
someone to continue to purchase
your brand

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Sources Of Brand Equity
• Authenticity

• Consistency

• Reassurence

• Differentiation

• Transformation of the experience

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Brand Management process
1. Preparing for effective brand
management

2. Understanding your current brand

3.Defining your desired brand

4.Delivering your desired brand

5.Keeping track over time

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1. Preparing for effective brand
management
6 principles to follow….
1. Brand value is built in mind
2. Brand r built through everything they do and
say
3. Think and talk about your brand
4. Brand can be driving force for your business
5. Brands draw strength from consistency
6. Brands can live forever

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2.Understand your current
brand
• agree a frame work
• Identify your brand stakeholders
• Gather existing info
• Reach consensus on your current
brand

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3.Defining your desired
brand
• Analyse
1.Market place
2.Competitor
3.Consumer (wants and need)
4.SWOT

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4. Delivering your Desired
brand
• Plan and implement brand marketing
programs to reach your desired level
of brand

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5. Keeping track over time
• Develop your environmental monitoring….
1.Visit market
2.Check vision & values of your competitor
3.Mystery shopping to your own brand and
competition.
4.Keep in touch with opinion builders in social
set up
5.Conduct brand health tracking

GROW & SUSTAIN BRAND

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EQUITY
ASSIGNMENT

• Consider your self as brand. Define

various brand elements and analyze
the brand management process?
• Submit one page document in next
session.

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SESSION 3

Customer Based Brand Equity (CBBE)

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Definitions
• The power of brand lies in what customer /
consumer has learned, seen, felt, and heard
about the brand due to their experiences over
time. ‘The power of brand lies what resides in
minds of consumer’. ‘CBBE is differential effect
that brand knowledge has on consumer response
to the marketing of that brand. A brand with
positive CBBE results in consumer accept more
new extensions, less sensitive to price increase
or with drawl of advertising.’

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Advantages of Strong Brand
• Improved perception about performance
• Loyalty
• Less vulnerable to competitive market
• Inelastic response of consumer to price increase
• Elastic response to price decrease
• Increase communication effectiveness
• Licensing opportunities
• Brand extension opportunities

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Brand Knowledge is Key of
Making Brand Strong
• Brand Knowledge is comprising two
components

Brand Knowledge

Brand Awareness Brand Image

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1. Brand Awareness

• Related to strength of brand node or

trace in memory, as reflected by
consumer ability to identify the
brand under different conditions. It is
necessary but not always sufficient in
building brand equity. Brand image
often come into action.

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Contnd…..
• Comprises brand recognition (consumer
ability to recognize the brand when given
the brand as a cue) and brand recall (ability
to retrieve from memory when given the
category or usage cue)
• Consequences of Awareness:
>Learning: brand node is created in mind
> Consideration: awareness increases the likelihood
that your brand will be part of handful of
consideration set.
>Choice: awareness affect choices among brand in
consideration set

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Contd….
• The Elaboration Likelihood Model explain the
attitude change and persuasion. As per this
model, consumer require minimum level of
brand awareness in low involvement. Low
involvement occurs when consumer lack
either purchase motivation (they don’t care
about product or services) or purchase ability
(they don’t know anything else about t he
brand in category).

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Contd…
• 1. Purchase motivation: lack of perceived
difference among brands in category lead to
consumer who r unmotivated regarding the brand
choice process. (gasoline purchases).
• 2. Purchase ability: sometimes consumer don’t
have necessary knowledge or experience to judge
differences among the products (eg students doing
self cooking will purchase a brand that has fresh
message in mind).

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How to build brand
awareness?
• 1. Increase the familiarity of the
brand through repeated exposure
(for brand recognition)
• 2. Strong association with the
appropriate product category or
other relevant purchase or
consumption cues (for brand recall)

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2. Brand Image
• Important concept but not measurable
• Defined as perception in the mind of
consumer as reflected by association held
in consumer mind
 Brand Image for Haleeb
trusworthy
nurturing
friendly
best in quality

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How To maximize brand
equity?
1. Invest
2. Product management into consumer
management
3. Reduce acquisition of consumer base cost
4. Track equity against various marketing
program
5. Develop plan separately for acquisition &
retention

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Components of equity and
drivers
• Value Equity (what is given up for what is
received) and drivers are quality, price &
convenience (objective assessment).
• Brand Equity (consumer assessment of the
brand beyond the objectively perceived value)
and drivers are brand awareness and consumer
perception of brand ethics.
• Relationship Equity (consumer tendency to
stick with the brand beyond objective &
subjective assessment of brand) and drivers are
loyalty programs, special consumer recognition
programs and community building programs.

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Steps in brand building
• Questions in mind of
consumer:
1.Who r u (brand identity)
2. What r u (brand meaning)
3. What about u (brand
response)
4. What association I keep with
u (brand relationship)
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• Answers through
building steps
1.Identification of brand and
associational mind of
consumer
2.Establish tangible and
intangible association with
certain properties.
3. Evolve consumer response
to this brand identification
and brand meaning.
4.Convert response to create
intense, loyal relationship
30
Brand Building blocks
Resona 4.
nce Relationsh
ip
Judgment
Feelings

3.Response

Performance
Imagery
2.Meaning

SALIENCE 1.identity
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Sub dimensions of brand
building blocks
loyalt
y
Quality Social

approval
& self
respect

Product reliability Personality

&values

Category identification to
satisfy needs

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 ANSOFF’S GROWTH MATRIX &
EXPANSION STRATEGIES

CURRENT NEW
PRODUCTS PRODUCTS

Market Product
Current penetration development
Markets strategy strategy
Market
New Diversificatio
development
Markets n strategy
strategy

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Choices for NPD

• can develop a new brand,

individually chosen for the new
product
• Can apply, in some ways, one of its
existing brands
• Can use a combination of a new
brand with an existing brand

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Classification of Brand
Extension
1. Line extension: parent brand is used to brand a
new product that targets a new market segment
within a product category currently served by the
parent brand. It often involve a different flavor or
ingredient, variety, form or size, application of the
brand.
2. Category Extension: parent brand is used to enter
a different product category from that currently
served by the parent brand (Swiss army watches)

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