Branding An Overview

Branding: An Overview
1
What is a Brand?
Brand assets, strength and value
Tracking brand equity
Goodwill
How brand create value for the customer
How brand create value for the company
Corporate brand
2
What is a Brand?
Goodwill
Corporate brand
3
What is a Brand?
Customer based : relationship

customers have with the brand
The other aims at producing
measures in dollars, rupees,
euros or yen.
Both approaches have their own
relevance
4
What is a Brand?
A brand is a set of MENTAL

ASSOCIATIONS, held by the
consumer, which add to the
perceived value of a product or
service.
These associations should be
UNIQUE (exclusivity), STRONG
(saliency) and POSITIVE (desirable)
5
What is a Brand?
Brands are intangible assets
Brands are conditional assets
Without benefits there is NO

brand value
6
What is a Brand?
LEGAL PERSPECTIVE
A sign or set of signs certifying

the origin of a product or
service and differentiating it
from the competition
7
Kotlers 5 levels to a Product
Potential Product
Augmented Product
Expected Product
Generic Product
CORE BENEFIT
8
Potential Product
Augmented Product
The
Expected Product Fundamental
Need or Want
that consumers
Generic Product satisfy by
consuming the
product or
CORE BENEFIT service
9
Potential Product
Augmented Product
Basic Version
of the product
containing only
Expected Product those elements
absolutely
necessary to
Generic Product function. No
distinguishing
features.
CORE BENEFIT
10
Potential Product Attributes and

Characteristics
that buyers
Augmented Product normally expect
and agree to
when they
Expected Product purchase a
product
Generic Product
CORE BENEFIT
11
Potential Product Additional

product
attributes,
Augmented Product benefits, or
related services
that distinguish
the product
Expected Product
from
competitors
Generic Product
CORE BENEFIT
12
Potential Product All the

augmentations
and
Augmented Product transformations
that a product
might
ultimately
Expected Product
undergo in the
future
Generic Product
CORE BENEFIT
13
All the augmentations and

Delivery & Credit Potential Product
transformations that a product
might ultimately undergo in the
Installation future
After-Sale Service Additional product attributes,

Warranty Augmented Product benefits, or related services that
distinguish the product from
competitors
Brand Name Expected Product

Attributes and Characteristics that
buyers normally expect and agree
Features to when they purchase a product
Design
Packaging Basic Version of the product
containing only those elements
Quality Level Generic Product absolutely necessary to function.
No distinguishing features.
The Fundamental Need or Want

CORE BENEFIT that consumers satisfy by
consuming the product or service
14
Relative Brand Distinction

The more distinctive or different a brand
is in the consumers mind set, the
stronger brand preference becomes. This is
critical to keeping competition away from
the consumers consideration.
Products Brand Strong Brand

(Commodities) Name Brand
Perceived by the
No Difference Well Known Distinctive Consumer as
Except Price But Similar Unique
15

A brands preference is primarily built
through differentiation and relevance
Insulate product from competition
OWN Something

Perceived by the
16
Kotlers Five Levels

Potential Product
of A Product
Augmented Product
BRAND DISTINCTION by Timothy D. Ennis

Expected Product Perceived by the
Generic Product
CORE BENEFIT
17
Kotlers Five Levels

Potential Product
of A Product
Augmented Product
BRAND DISTINCTION by Timothy D. Ennis

Expected Product Perceived by the
OWN Something
Generic Product
CORE BENEFIT
18
Product vs 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.
19
Meaning & Importance of Brand
Brands are a means of differentiating

from competitors.
Customers will pay price premium for a
good brand
it is not factories that make profits,
but relationships with customers, and
it is company and brand names which
secure those relationships
Businesses that invest in and sustain
leading brands prosper
20
Brand also is
The cherry is a brands promise. The

ice cream represents all your products
and services. The apples are the
corporation itselfthe corporate
environment. The crust is the structure
of your companynot the building
(although how it looks is part of
branding) but your systems.
So here is your delicious, multi-tiered,

integrated apple pie. Of course the
cherry gets attention. Its your name in
neon lights, your fancy new logo, and
your overall visual appeal. If a prospect
buys a slice of your pie just for
the cherry then youve done well!
But integrating the ice cream

(Product/Service), apples (Corporate
Culture) and crust (Systems) are
essential for building true core brand
equity.
Source: www.brandidentityguru.com 21
Quiz Time
22
1. Which Indian apparel manufacturer owns 'Manzoni', a premium brand of menswear?
a) Raymond b) Provogue c) Zodiac
Raymond: Specifically aimed at the elite clan of top corporate executives, Manzoni is the
most exclusive and premium brand in the Raymond Apparel portfolio. The design and styling
is classy and urbane. The shirts are priced Rs 1695 onwards, ties Rs 995 onwards and suits
costs Rs 14,995 upwards.
2. Which brand of shirts is the product of a company called Cluett Peabody?
a) Peter England b) Van Heusen c) Arrow
Arrow: Sanford L. Cluett discovered a way to pre-shrink fabrics and his invention was called
the 'Sanforized fabric'. The company he set up Cluett Peabody & Co, Inc. licensed the
process and made it available to everybody in the textile industry. The Arrow brand of shirts
comes from this company.
3. Which was India's first branded mens's shirt to be marketed nationally?
a) Liberty b) Charagh Din c) Cambridge
Liberty: The readymade shirt story started in India in the 1950s with Liberty, which became
the first branded shirt in the business. Soon the influx started with Double Bull, followed
closely by Charagh din, Cliff, Van Heusen, etc. 23
4. Which Indian clothing brand gets its name from the Greek word for 'Figures of
Animals'?
a) Zodiac b) Van Heusen c) Cliff
Zodiac: Zodiac Clothing has been manufacturing fashion garments for the last 49 years.
Apart from shirts, it also has a strong line of accessories like ties, cuff links, belts,
socks, wallets and handkerchiefs. The Company's combined manufacturing capacity is 5
million shirts, half a million ties and 1 million pairs of socks.
5. La Reine fashions was recently incorporated in India to manufacture and market
which of these brands?
a) Louis Vuitton b) Victoria's Secret c) Vanity Fair
Vanity Fair: In April 2003, the Rs 275-crore VIP Group, announced that it would bring
the Vanity Fair brand of lingerie into the country. Floating a new company, La Reine
Fashions Pvt. Ltd., to manufacture and market the brand here, this is the second time
Vanity Fair is making an entry into India since its launch in 1995.
24
What is a Brand?
Goodwill
Corporate brand
25
Brand Assets, Strength & Value
From Awareness to Financial Value
Brand Assets Brand Strength Brand Value
Brand Awareness Market share Net discounted cash

Brand reputation Market leadership flow attributable to
(attributes, benefits, Market penetration the brand after paying
competence, know-how the cost of capital
etc.) Share of requirements
invested to produce
Brand personality Growth rate and run the business
Brand deep values Loyalty rate and the cost of
Brand imagery Price Premium marketing
Brand preference or
attachment This at a specific
Patents and rights point in time is a
result of the Brand
Assets within a This is the ability
These are the
specific market & of brands to
sources of
competitive deliver profits
influence of the
brand environment 26
What is a Brand?
Goodwill
Corporate brand
27
Tracking Brand Equity
Aided brand awareness(brand

recognisation)
Unaided brand awareness(Brand
recall)
Evoked set
Consumed
Result of a brand tracking study
Brand X
Japan Maxico
Aided awareness 99% 97%
Unaided awareness 48% 85%
Evoked Set 24% (50%) 74% (87%)
Consumed 5% 40% 28
What is a Brand?
Goodwill
Corporate brand
29
Goodwill
The convergence of finance and marketing

Brand value is determined independently
Hidden by the poor financial results of the
company.
Example: The reason why Apple lost
money in 1996 was not because a company
is making a loss that its brand is not
adding value
Close Relationship exists between financial
and marketing analysis of brands.
30
Brand Value
Goodwill: the convergence of finance and marketing
Best Global Brands 2006
Rank 2006 Brand Change in

Brand, Origin Country, Sector Value ($m) brand value
1 Coca-Cola US Beverages 67,000 -1%
2 Microsoft US Computer Software 56,926 -5%
3 IBM US Computer Services 56,201 5%
4 GE US Diversified 48,907 4%
5 Intel US Computer Hardware 32,319 -9%
6 Nokia Finland Telecom Equipment 30,131 14%
7 Toyota Japan Automotive 27,941 12%
8 Disney US Media/Entertainment 27,848 5%
9 McDonalds US Restaurants 27,501 6%
10 Mercedes Germany Automotive 21,795 9%
31
Top 10 Global Brands Scoreboard
2007
2007 2006 Change Brand 2006
Brand Brand in Value Brand Change
Rank Rank Rank Brand Name $m Value (in %) Parent Company Country
1 1 0 Coca-Cola 65,324 67,000 -3 Coca-Cola U.S.
2 2 0 Microsoft 58,709 56,926 3 Microsoft U.S.
3 3 0 IBM 57,091 56,201 2 IBM U.S.
4 4 0 GE 51,569 48,907 5 GE U.S.
5 6 1 Nokia 33,696 30,131 12 Nokia FINLAND
6 7 1 Toyota 32,070 27,941 15 Toyota JAPAN
7 5 -2 Intel 30,954 32,319 -4 Intel U.S.
8 9 1 McDonald's 29,398 27,501 7 McDonald's U.S.
9 8 -1 Disney 29,210 27,848 5 Walt Disney U.S.
10 10 0 Mercedes-Benz 23,568 21,795 8 DaimlerChrylser GERMANY
32
What is a Brand?
Goodwill
Corporate brand
33
How brands create value for the customer
Buyers do not look the brand (e.g. writing

pad, rubber, markers or photocopy paper)
Brands reduce perceived risk
The perceived risk is greater if the unit
price is higher or the repercussions of a
bad choice are more severe.
Consumers generally invest more time and
effort in buying decisions for high
involvement products
34
How brands create value for the customer
The Functions of the Brand for the Consumer
Function Consumer Benefit

Identification This are concerned with the essence of the
Practicality brand; that is, to function as a recognized
symbol in order to facilitate CHOICE and to
gain TIME
Guarantee To Allow saving time and energy through identical repurchasing &
loyalty
Optimization This are to reduce the perceived risk
Badge
Continuity
This are more pleasurable(satisfaction linked to the attractiveness of the
Hedonistic brand, to its logo, to its communication
Ethical
35
What is a Brand?
Goodwill
Corporate brand
36
How brands create value for the Company
Why do financial analysts prefer

companies with strong brands?
Because they are less risky
By paying a high price for a company

with brands the financial analyst is
acquiring certain future cash flows
37
What is a Brand?
Goodwill
Corporate brand
38
Corporate Brand
Product brands to Corporate

Brand
Example: After Procter &
Gamble, Unilever is developing
some kind of corporate visibility
in Asia. Change of name from
HLL to HUL
Companies becoming Sensitive
towards reputation
39
Corporate Brand
Global reputation is based on six factors:

1. Emotional appeal (trust, admiration & respect)
2. Product & services (quality, innovativeness, VFM)
3. Vision & leadership
4. Workplace quality (well-managed, talent)
5. Financial performance
6. Social responsibility
40
RECAP
What is a Brand?
Goodwill
Corporate brand
41

Branding An Overview

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Branding An Overview

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Formats disponibles

Branding: An Overview

Customer based : relationship

A brand is a set of MENTAL

Brands are intangible assets

Brands are conditional assets

Without benefits there is NO

A sign or set of signs certifying

Potential Product Attributes and

Potential Product Additional

Potential Product All the

All the augmentations and

After-Sale Service Additional product attributes,

Brand Name Expected Product

The Fundamental Need or Want

Relative Brand Distinction

Products Brand Strong Brand

Relative Brand Distinction

Products Brand Strong Brand

Kotlers Five Levels

Products Brand Strong Brand

Kotlers Five Levels

Products Brand Strong Brand

Brand = Mind Set

Brands are a means of differentiating

The cherry is a brands promise. The

So here is your delicious, multi-tiered,

But integrating the ice cream

From Awareness to Financial Value

Brand Assets Brand Strength Brand Value

Brand Awareness Market share Net discounted cash

Aided brand awareness(brand

The convergence of finance and marketing

Rank 2006 Brand Change in

2 2 0 Microsoft 58,709 56,926 3 Microsoft U.S.

3 3 0 IBM 57,091 56,201 2 IBM U.S.

4 4 0 GE 51,569 48,907 5 GE U.S.

5 6 1 Nokia 33,696 30,131 12 Nokia FINLAND

6 7 1 Toyota 32,070 27,941 15 Toyota JAPAN

7 5 -2 Intel 30,954 32,319 -4 Intel U.S.

8 9 1 McDonald's 29,398 27,501 7 McDonald's U.S.

9 8 -1 Disney 29,210 27,848 5 Walt Disney U.S.

10 10 0 Mercedes-Benz 23,568 21,795 8 DaimlerChrylser GERMANY

Buyers do not look the brand (e.g. writing

The Functions of the Brand for the Consumer

Function Consumer Benefit

Why do financial analysts prefer

By paying a high price for a company

Product brands to Corporate

Global reputation is based on six factors:

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