BRAND MANAGEMENT

The strategic brand management process is

defined as involving four main steps:
1) Identifying and establishing brand positioning and values
2) Planning and implementing brand marketing programs
3) Measuring and interpreting brand performance
4) Growing and sustaining brand equity
1) Brand Positioning is the act of designing the companys
offer and image so that it occupies a distinct and valued
place in the target customer mind.
It offers core brand value and brand mantra.
Core brand value are those set of abstract associations that
characterize a brand. Brand mantra (essence or value)is a
short three- to five word expression of the most important
aspects of the brand
WHAT IS BRAND EQUITY?

Monetary Value. The amount of additional

income expected from a branded product over
and above what might be expected from an
identical, but unbranded product.
Intangible. The intangible value associated
with a product that cannot be accounted for by
price or features. Pepsi and Coke have created
many intangible benefits for its products by
BRAND associating them with film stars.
Children and adults want to consume their
products to feel some association with these
stars.
Perceived Quality. The overall perceptions of
quality and image attributed to a product,
independent of its physical features. Mercedes and
BMW have established their brand names as
synonymous with high-quality, luxurious
automobiles.
Brand Equity is a set of assets and liabilities linked to a
brand, its name and symbol that add to or subtract from
the value provided by the product or services to a firm or
that of firms customers.
Examples of Brand Equity is in the soft drink industry.
Without a brand name and all of the marketing money that
has gone into, Coca-Cola would be nothing more than
flavored water. Due to the companys long-term marketing
efforts and protection, enhancement and nurturing of their
brand name, Coke is one of the most recognizable brands
in the world and Pepsi in India.
ASSET CATEGORY MAKING BRAND EQUITY
1.Brand awareness is the strength of a brands presence in
the
consumers mind.
2.Brand Loyalty refers to the commitment of consumers
towards the brand.
3. Perceived quality reflects the quantum of goodness felt
by the consumer on buying it.
4.Associations that consumers make with the brand support
brand equity. These associations may be product attributes,
a
particular symbol, or even a celebrity spokesperson.
BRAND EQUITY CAN PROVIDE STRATEGIC
ADVANTAGES TO YOUR COMPANY
Allow to charge a price premium compared to
competitors with less brand equity.
Strong brand names simplify the decision process
for low cost and non-essential products.
Brand name can give comfort to buyers unsure of
their decision by reducing their perceived risk.
Maintain higher awareness of your products.

Use as leverage when introducing new products.

Often interpreted as an indicator of quality.
 High Brand Equity makes sure your products are
included in most consumers consideration set.
Your brand can be linked to a quality image that
buyers
want to be associated with. Can lead to greater
loyalty from customers. Offer a strong defense
against new products and new competitors.
Can lead to higher rates of product trial and repeat

purchasing due to buyers awareness of your brand,

approval of its image/reputation and trust in its
quality.
CUSTOMERBASEDBRANDEQUITYPYRAMID

4.RELATIONSHIPS=
4.RELATIONSHIPS=
RESONANCE Whataboutyou&me?
Whataboutyou&me?

3.RESPONSE=
3.RESPONSE=
JUDGMENTS FEELINGS
Whataboutyou?
Whataboutyou?

2.MEANING=
2.MEANING=
PERFORMANCE IMAGERY Whatareyou?
Whatareyou?

1.IDENTITY=
1.IDENTITY=
SALIENCE
Whoareyou?
Whoareyou?
HOW DO YOU MEASURE BRAND EQUITY?
Most evaluations of Brand Equity involve utility
estimation.
1. measure the value (utility) of a products features and
price level and also measure the overall utility of a
product when including brand name. The difference
between total utility and the utility of the product
features is the value of the brand.
2. In other situations, the utility of the brand is
measured directly and added to the feature utilities to
produce
an overall utility for the product.
3. Besides utilities, contributing factors such as current
awareness levels of each Brand, overall perceptions of
each Brand, and Brands currently used should be
measured.
Brand Equity: product features, price, market awareness,
market perceptions and expenditures to build and support
those Brands.
Building a brand takes time and money, and maintaining it
takes patience and discipline.
Brand building is an investment rather than a cost, a necessity
rather than a luxury, and a priority shared by the most
successful corporations.
 Brand Value Calculation
One of the five drivers of brand insistence is value. Value is
a function of two things:
(1) benefits delivered and
(2) cost of receiving those benefits.
Brands that offer superior long-term ROI can use the
calculator to demonstrate that while their products and
services might be more expensive upfront, the long-term
savings realized from using them more than compensate for
their higher upfront price.
For calculating we require purchase cost, maintenance costs,
replacement parts costs, average downtime frequency and
duration, out-of-service costs, ongoing energy usage and
costs, non-compliance fines and surcharges, estimated (or
guaranteed minimum) product life, performance efficiency,
ability to charge a price premium for product usage, etc.
BUILDING POWER BRANDS
Steps in Building A Strong Brand
1.Start with a Quality Product : All strong brands
absolutely demand a superior product or service.
2. Identify your Brands Singular Distinction, Define
your Message, and Position Your Brand Properly in
the market place:
1.Are you first, best, fastest, or most luxurious in your
category?
2.When defining your message, try to own a single
word or short phrase in the mind of the market. Eg
Volvo owns safe. Nike owns Just do it.
3.Position using USP and seeing the market
condition.
CONT

3. Tap into Emotion:

Develop accessible attributes for your brand.
Your brand should readily tap into your target markets psyche
and evoke an emotional response.

4. Build the identity:

Create a visually effective logo.
Write a tag line or slogan for the brand that concisely captures
the essence of your unique selling proposition.

5. Market the image

Name, logo, advertising, and all marketing communications
materials should communicate USP and consistently
Communicate brands message.
CONT..
6. Live the message:
Deliver the promise you make to your market. Brand is
nothing more and nothing less than a promise of value and
you must deliver on such promises in the mind of the market.
All employees who have contact with prospects and
customers should speak and act in a way that is consistent
with your brands values- internal branding.

7. Measure Your Brand Equity Against the Competition

and Continue to Build and Refine Your Brand:
By conducting market surveys, analyzing the price premium
brand can enjoy, studying the sustainability of your brand,
conducting focus group research and Regular brand audits.
POWER OF BRAND

POW Icon awareness

vividness
uniqueness
measurability of
Adv.

Credit
confidence
likability
loyalty (Referrals,
WOM, Repurchase)
Alpha values are calculated
BRAND VALUE CHAIN
Brand value chain is a structured approach to
assessing the sources and outcomes of brand
equity and the manner by which marketing
activities create brand value.
It provides insights to support brand managers,
chief marketing officers, MD, CEO and all who may
need different types of information.
It assumes that the value of a brand ultimately
resides with the customers.
The model also assumes that three multipliers moderate the
transfer between the marketing program and the subsequent
three value stages.

The program multiplier determines the marketing

programs ability to affect the customer mind-set and is a
function of the quality of the program investment.

The customer multiplier determines the extent to which

value created in the minds of customers affects market
performance.

The market multiplier determines the extent to which the

value shown by the market performance of a brand is
manifested in shareholder value.
CLASS ACTIVITY
Choose the case you have studied in the previous
assignment. do an informal brand value chain
analysis. Trace how brand value is created and
transferred and explaining the role of
multipliers?
EXAMPLE
Marketing Program Investment:
Product: product line like 2 minute noodles, pasta,
Ketchups, soups etc, in different flavors, different
packaging like value saver packs, sachet etc.
Flagship product of Nestle Maggi.
Communications: And have also launched several
marketing campaigns from time to time like
Share your experience Campaign, Guess the
taste campaign etc. And also promotional
campaigns in schools, colleges & offices, free
sample distribution, gift on return of empty pack
etc
Trade: Available at major retail outlets, provision
stores.
Others: Invites housewives to send innovative
recipes made from Maggi, organized contests &
industry visits for students and several other
interactive activities.
Multiplier - Program Quality:
Maggi was launched in India with tagline Fast to
cook, Good to eat 2 Minute noodles.
Later focus was shifted to health and nutrition

factor. They launched Taste bhi health bhi

campaign which is synonymous for Maggi.
Jingle of Maggi Pankaj kapoor
 Customer Mindset:

a. Brand Awareness: 2min noodles.

b. Brand Associations: Strong- Tasty & Healthy, Variety, Experience,
Convenient.
c. Brand Attitudes: Positive & favorable attitude because of
products quality.
d. Brand Attachment: Maggi holds loyal customer base
Multiplier-Marketplace Conditions:
Competitive Superiority: Main competitors - Heinz , Knorr, Kissan,
Top Ramen, Sun feast Pasta, Yippee noodles, Horlicks Foodles,
Knorr Soupy noodles,
Channels & other intermediary support: available in several retail
outlets with sufficient shelf space & at provision stores as well.
Customer Size & Profile: Children, Students, Working people,
Parents.
Market Performance:

Market Share: 86.5% market share 2011. The share of the Nestle's
noodles brand in India dropped to 42% in January 2016 from a
high of 77% in the year-ago month.
Price Premium: As varieties of products are available and number
of competitors also increasing, thus no premium charged.
Price Elasticity: competitive pricing
Expansion Success: innovative product variants, new product
lines
Multiplier- Investor Sentiment:
Growth Potential: As per Nielsen report 2010- Nestle has the
potential to expand the Rs 1,300-crore instant noodles category
which itself is growing at a rapid 15% annually.
Risk Profile: Health conscious and various health
Brand Contribution: Maggi was the flagship brand of Nestle since
2001.
BRAND TRACKING STUDIES
Brand tracking studies include measurements of
Awareness: A brand that first comes to mind in certain
situations is more likely to be considered than one that is
only recognized when it is prompted to the consumer.
usage: frequency of usage, and total spending in the
brand, and product category.
brand attitudes & Perceptions : this is usually
captured through questions related to brand image and
associations that consumers develop
purchase intent measures of likelihood to buy a brand or
switch to a competitor
 CHOOSING BRAND ELEMENTS TO BUILD BRAND
EQUITY
Brand Elements are often called brand identities and are
those trademarkable devices that serves to identify and
differentiate the brand. The main Brand Elements are
Brand Element options
 Brand Elements
Brand Logos and Characters Slogans and Packaging
Criterion Name and Symbols Jingles and Signage
URLs
Memorabilit To enhance Useful For Useful For To enhance Useful For
y Brand Brand Brand Brand Brand
Recall & Recognition Recognition Recall & Recognition
Brand Brand
Recognition Recognition
Meaningful Can Can Useful in Convey Convey
ness reinforce reinforce non product associations associations
associations associations related explicitly explicitly
imaginary &
brand
personality
Likability Evoke Provoke Generate Evoke Combine
verbal visual human verbal visual and
imaginary appeal qualities imaginary verbal
appeal
CONT

Brand Elements

Brand Logos and Characters Slogans Packaging

Criterion Name and Symbols and and
URLs Jingles Signage
Transferab At times excellent At times At times good
ility limited limited limited

Adaptabilit difficult Typically Sometimes Can be Typically

y be be modified be
redesigned redesigned redesigned

Protectabil good excellent excellent excellent Can be

ity closely
copied
BRAND NAME
EXERCISE

Pick up a Brand. Identify all of its brand elements and

assess their ability to contribute to brand equity
according to the choice criteria.
ACTIVITY
Choose a brands and suggest what all benefits will
it offer to the
manufacturers,

retailers

And to the customers

BRAND EQUITY MANAGEMENT SYSTEM

Step 1: Brand Equity charter

Firms view on brand equity

Scope of brand

Actual and desired equity

How to manage brand equity

Step 2: Brand equity report: what happened to the brand

and why it happened. It should include both
internal(perception) and external( Sales and market
share, Profit assessments)measures of brand
performance and sources and outcomes of brand
equity.
Step 3: Brand Equity responsibilities:
 ROLE OF MARKETING PROGRAMS TO BUILD BRAND
EQUITY
1. Product Strategy
i) Perceived Quality and Value:
Performance, Durability, Features, Conference quality,
Reliability, Serviceability, Style and Design
Brand intangibles: eg Brand Personality, Product
imaginary
TQM
Value chain: inbound logistics, operations, outbound
logistics, marketing and Sales, Service
ii) Relationship marketing: Mass customization( Levis,
Nike Colour plus), Aftermarketing, Loyalty programs
2. Pricing Strategy
1. Consumers Price perception: Low high, medium
Price Tier is formed, Price brands are found i.e most
excepted price
Value based Price Strategy: balance between Product
Design, Product Cost and Product Prices
8 steps to better pricing
1. Assess the value of product or service to the
customer
2. Look for variation in the way customers value the
product
3. Assess customers price sensitivity
4. Identify an optional pricing structure
5. Consider competitors reaction
6. Monitor Prices
7.Assess customers emotional response
8. Analyse whether the returns are worth the cost to
serve
Every day low pricing Strategy

3. Channel Strategy: Channel Design: Direct,

Indirect
Push and Pull strategy
Channel support
INTEGRATED MARKETED COMMUNICATION

1. Media Advertising
2. Trade Promotions
3. Direct Response advertising:
mails,telephone,Direct selling
4. Online advertising
5. Consumer Promotion: Samples, Coupons,Price
offs
6. Place advertising: Billboard, Posters, Movies,
airlines, POP
7. Event marketing and sponsorship
8. POP advertising: Shelf talkers, Aisle markers,
danglers
9. Publicity and public relations:
Buzz Marketing: Message should be simple.
Something new
No false clams
Let the consumer articulate your product
Listen to the buzz
10. Personal selling
EFFECTIVENESS OF MARKETING
COMMUNICATION
Current Brand Knowledge. Create a mental map
Desired Brand knowledge. Define optimal point of parity, point
of differences and brand values
How to connect the two

Information Process model of Communication

1. Exposure
2. Attention
3. Comprehension
4. Yeilding (respond favorably)
5. Intentions
6. Behavior
IMC PROGRAM

1. Coverage
2. Contribution
3. Commonality
4. Complementarity
5. Versatility
6. Cost
PITFALLS IN LAUNCHING A NEW AD CAMPAIGN

1. A consumer may not be exposed to an ad because

the media plan missed the mark.
2. Boring and uninspired creative strategy
3. Lack of proper category knowledge
4. People may find the claims too high
5. Lack of immediate need
6. Failure to remember any thing from the ad