Unit-III

BRAND CONCEPT
1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. Nature and Importance of Brand Types of Brands Strategic Brand Management Process Brand Identity Perspectives Brand Identity Prism Identity Levels Concepts and Measures of Brand Equity Brand Assets And Liabilities Aaker Model of Brand Equity Designing Marketing Programs to build brand Equity Customer Based Brand Equity Brand Loyalty Measures of Loyalty Branding Strategies-product line, range and Umbrella Branding

Unit-III
BRAND PERSONALITY
15. 16. 17. 18. 19. 20. 21. Definition, Measures and Formulation Brand Image Dimensions Stages of Concept Management for Functional Symbolic Experiential Brands

A brand is..
A name or symbol that distinguishes the goods or services of one seller group from those of competitors. A BRAND represent everything that a product or service means to consumers. What is a Product? A product is anything that can satisfy be offered to a market for attention, acquisition, use or consumption that might satisfy a want or need

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

A brand is..
Few Definitions:
The Intangible Sum of a products attributes: its name, packaging, and price,, its history, its reputation, and the way its advertised. -David Ogilvy A brand is a name, term, sign, symbol,, or design, or a combination of them, intended to identify the goods and services of one seller or group of sellers and to differentiate them from those of the competitor. - P. Kotler Branding means creating an emotional association that customers form with the product, service, or company. -Jared Spool

Unit-III

BRAND CONCEPT
Branding is supposed to be the process by which the true character and purpose of the company is communicated. And this process is a strategy that is consistently applied through the entire firm, hopefully creating an aura of trust; an appreciation of uniqueness; and a set of expectations.

NATURE AND IMPORTANCE OF BRAND

A brand is a collection of perceptions in the mind of the consumer. Brand is everything what marketers want to communicate to consumers and what marketers communicate.
By definition, brand is whatever the consumer thinks of when he or she your companys name. hears

A brand is a promise. By identifying and authenticating a product or service it delivers a pledge of satisfaction and quality. Its a bundle of functional and emotional benefits A name with a reputation A mark of pride A simplifier of choice A product or service with an attitude

Unit-III

BRAND CONCEPT Branding has come a long way in India and also around the world. The word brand comes from the word "brandr, a word used by early Norse tribesmen meaning to burn, as in branding livestock to declare ownership. No doubt, anyone who has read cowboy stories is familiar with the concept of branding cattle. Over time branding of cattle became not just mark of ownership but also of quality. In the Chicago meat market, buyers recognized quality beef through the brand mark on the cattle. This was because the ranches which produced better quality of meat did so as it implied better grass or more adequate supply of water, better living conditions for the cattle or a shorter journey to the meat market. No longer was meat on the hoof a commodity, it was branded and the better quality was recognizable. In the earliest form, a brand mark defined quality, a mark which differentiated a quality product from other similar products. Many years ago, in the Soviet Union, when products were sold under a generic name, the factory manufacturing the product had to mark its identity on the packaging. Customers soon realized that a detergent powder produced in one factory was superior to another in quality. Eventually, housewives would turn the packaging around while purchasing to identify the origin of the product and make their choices on the basis of its manufacturing location. The serial number of the factory had become a brand as it is differentiated from other similar detergents, which, according to the state, were supposed to be identical in formulation and in every other way. This is similar to the Nirma story where the brand name was the only differentiator between totally similar products in the Ahemadabad market in the early 1970s

Unit-III

BRAND CONCEPT

Role of Brands - What are brands for

1) A brand identifies the seller or maker. 2) A Protector for both the consumer and the producer. 3) A brand reduces the primacy of price upon the purchase decision. 4) It accentuates the bases of differentiation. 5) A brand is a promise 6) A brand gives the seller the opportunity to attract a loyal and profitable set of customers. 7) Strong brands help build the corporate image, making it easier to launch and gain acceptance by distributors and customers. 8) Managing a positive brand image creates opportunities to introduce new products that build on brand equity. It helps to attract and retain good employees and it improves the stockholders

Unit-III Brand Characteristics (Six levels of Brand)

The world is rapidly shrinking . There may be various viewpoints through which a person may perceive the brand in a particular way. Lets take Mercedes Benz for example:
Attributes: The company may use one or more of the attributes to advertise the car. Benefits: Customers are not buying attributes, they are buying benefits. Attributes need to be translated into emotional and functional benefit. Values: The brand also says something about the producers values. Culture: The brand may represent a certain culture.

Personality: The brand can also project a certain personality. If the brand were a person, an animal, or an object, what would come to mind?
User: The brand suggests the kind of consumer who buys or uses the product.

Unit-III
BRANDING CONCEPT

Brand Width: It is the extension of the brand outside its original product category. Brand Length: It is the brands franchise in terms of age groups, consumer types and international appeal. Brand Depth: It is the brands ability to create consumer loyalty by offering variants in each element in the brand length. Brand Weight: It is the influence of the brand in its category or market.

Example:

Brand Width: Motorcycles, 4 wheel drive automobiles,

Sport and Utility automobiles, Small engine parts, outboard motors and marine products.

Brand Length: Motorcycles Swift, Samurai,

Sidekick etc.

Brand Depth: Swift Chevy Sprint, Geo Metro

(Variations of the Swift, Essentially the same Swift motorcycle.)

Unit-III
Elements of a Brand Certain factors should be considered before selecting a brand name. They are as follows: 1. Distinguish the product from competitive brands 2. Memorable and easy to pronounce 3. Easy to say, spell and pronounce 4. It should allude to the product 5. Negative or offensive references should be avoided. 6. Evoke positive mental image 7. Evoke positive emotional reaction 8. Suggest product function or benefits 9. Simple 10. Sound appropriate 11. Be unique Possibly, translate well in other languages too.

2. TYPES OF BRANDS
A. FUNCTIONAL BRANDS Here, the functional dimension of the brand is far more visible and appealing than the emotional or symbolic dimension. E.g. Nivea, Desprin

B. SYMBOLIC BRANDS Here, the symbolic or emotional dimension is more prevalent than the functional dimension. The decisions would be based on more of the emotional aspect than that of rational aspect. In the circumstances where consumer buying is emotions driven, the brand must accordingly focus on symbolic or emotional aspects. E.g. ICICI Prudential, LIC

Unit-III
2. TYPES OF BRANDS The functional dimension is the products attributes and benefits or the tangible properties while the symbolic dimensions are the intangible aspects of the brand. A marketer can combine these two elements to create the right appeal for customers. In consumer behaviour the rational and emotional perspectives are two models that explain how consumers make purchase decisions. Successful branding, therefore, depends on combining the rational and emotional components of a brand in a manner that it becomes consistent with the consumers frame of mind.

Different types of brands

Product Brands Service Brands E-brands Media Brands Not-for-profit Brands Nation Brands Government Brands Global Brands Organization Brands

3. Strategic Brand Management Process

Identifying and creating Brand Positioning Planning and Implementing Brand Marketing Programs Measuring and Interpreting Brand Performance Growing and Sustaining brand Equity

Unit-III

4. Brand Identity Perspectives

A Brand Building Concept

Brand identity is a unique set of brand associations that the brand strategist aspires to create or maintain. These associations represent what the brand stands for and imply a promise to customers from the organization members. 1. Brand identity consists of a core identity and an extended identity. The core identity represents the timeless essence of a brand .It is central to both the meaning and success of the brand. It is generally the first word that people behind the brand may utter when asked what the brand stands for:

Lux - Beauty bar for young women Dettol - Antiseptic, protection Johnson&Johnson - Trust and quality a baby needs

4. Brand Identity Perspectives

The extended brand identity includes elements that provide texture
and completeness. A brand identity should help a company decide which program or communication is effective and which be damaging or off the target. Even a well-thought-out and on-target core identity may ultimately be too ambiguous or incomplete for this task. A brand personality does not often become a part of the core identity.

Brand identity consists of four perspectives:

Brand as a product- Bisleri, Band Aid, Dettol etc. Brand as an organization- Tata Steel Brand as a person- Fardeen Khan for PROVOGUE, Karan Kapoor for
BOMBAY DYEING Brand as a symbol- Ronald McDonald house, Lizzat Papad

Unit-III

5. Brand Identity Prism

Brand Identity Prism-gauging the identity for Brand.

BUT What is it? When should it be used? How to use it?

Brand is a person. Any time Involve others

 1. 2. 3. 4. 5. 6.

The Model has 6 evaluative dimensions:Physical Facets or Quality Brand personality Brand Culture Brand Relationships Customer Reflection Customer Self Image

1.

2.

Brand having a Physical Facets or Quality: talks about what the product is, what does it do, how does it add value to customers, how does it fill up the gap in the market. it is a combination of either salient objective features or emerging ones. Brand personality A brand has a personality of its own. By communicating, it gradually builds up the character. The way in which it speaks of its products or services shows what kind of person it would be if it were human being. This is also called the personification of the brand and this helps in the instant product alignment with the target customers. It is measured using those traits/features of consumer personality that are directly related to brands. Proper care should be taken not to confuse it with consumer's reflection. Brand personality is closely linked with self image and image of the consumer. Questions to be asked are:

1) What are the features of consumer personality? 2) What are the features of brand if it was a person? This depends on the functional aspect of the product and the gap it would fill. 3. Brand having its culture: The product is not only a concrete representation of its culture, but also a means of communication. culture means a set of values feeding the brand's inspiration. The cultural facets refer to the basic principles governing the brand in its outward signs like products and communication. This essential aspect is at the core of the brand.

4.

Brand Relationships: Brands are often at the crux of transactions and

exchanges between people. This is particularly true of brands in the service sector and also in retails. Service is by definition is a relationship. Every brand has to maintain healthy relationships with customers.

5.

Brand is a reflection: Every product is designed to satisfy some need of

the intended customer base. A consumer has to be reflected in a way, which would show how he or she could image himself consuming a particular good.

For example, in India anyone consuming Pepsi Cola would imagine himself to be young and Thumps up (another cola drink from Coke stable) to be adventurous. For this aspect, questions are to be put to customer experience team about What would the users imagine while using the product?

6. Customer Self Image: Consumers get attracted to those brands in which

they see their own traits, for example, a man who is muscular and strong would smoke Marlboro. This goes hand in hand with brand personality

Unit-III

5. Brand Identity Prism

How have Adidas used the instrument Branding, and which roll did it play in the competition between Adidas and Nike?

Brand Identity Prism - Nike

Physical product Sports and fitness Relation Personality Like Jordan, Woods Culture American Just do It! Self image Cool Athlete

Sponsorship, Ethics Reflection

Aggressive, Provocative, In-your-face

Brand Identity Prism - Adidas

Physical product Sports and fitness Relation Quality and Heritage Personality Traditional, Conservative, Collective Culture European Traditional

Reflection True sportsmanship Strong work ethic A good team player

Self-Image Relates more to competing than to winning

6. Five Levels of Customer Attitudes toward a brand

Devoted to Brand
Hard-core Loyals who buy the brand all the time. Values the Brand

(Split Loyals - loyal to two or three brands. )

Satisfied & Switching Cost

Satisfied Customer
(Shifting Loyals - moving from one brand to another. ) No Brand Loyalty-

(Switchers - with no loyalty )

Unit-III

7. Concepts and Measures of Brand Equity

Understanding Brand Equity

The set of assets and liabilities linked to a brands name or symbol that add to or subtract from the value provided by the core product or service.
Brand equity is defined in terms of the marketing effects uniquely attributable to the brands -- for example, when certain outcomes result from the marketing of a product or service because of its brand name that would not occur if the same product or service did not have that name. -Keller A set of assets and liabilities linked to a brands name and symbol that adds to or subtracts from the value provided by a product or service to a firm and/or that firms customers. -David Aaker

Brand Equity

1. 2. 3. 4.

The major asset and Liabilities categories are:

Brand Name Awareness - A Brand Building Concept Brand Loyalty Brand Association Perceived Quality

5. Other Proprietary Brand Assets

Brand Equity
The major asset and Liabilities categories are:
Brand Name Awareness - A Brand Building Concept

the strength of a brands presence in the consumers mind

Awareness is measured through recognition

Recognitions reflect familiarity gained from past exposure. Recognition does not necessarily involve remembering where the brand was encountered before why it differs from other brands or even what the brands product class is. It is simply remembering that there was a past exposure to the brand. When consumers see a brand and remember that they have seen it before they realize that the company is spending money to support the brand. Since it is generally believed that companies will not spend money on products consumers take their recognition as a signal that the brand is good.

Companies often rerun advertisement on different channels over the year to sustain the brand awareness and ensure that the consumers are exposed to the brand. E.g. Complan, Airtel, Pepsi, Cadbury etc.

Brand Equity
The major asset and Liabilities categories are: Brand Name Awareness - A Brand Building Concept FACTORS AFFECTING BRAND AWARENESS Brand Awareness refers to the strength of a brands presence in the consumers mind. Awareness is measured according to the different ways in which consumers remember a brand, ranging from recognition to recall to top of the mind. Some of the major factors affecting brand awareness are: Brand Name: One of the most important factor affecting brand awareness is the brand name. Brand name plays an important part in creating awareness for a brand. Also whether the name is really very meaningful or completely baseless they both affect brand awareness. Bacardi Breezers - flavoured aerated vodka based drink Fevi Stik - adhesive Centre Shock chewing gum. Advertising: Advertising also helps to create Brand awareness in a big way. Take any brand name Fevicol, Vicks, Pepsi all have used ads for creating awareness among their consumers. Celebrity:- Another important factor affecting Brand awareness is the celebrities endorsing the Brand. Whenever you see a celebrity you love endorsing a brand you tend to propagate the Brand. Coca Cola experienced a tremendous increase in brand following post ad campaigns with Hrithik Roshan and Kaho Na Pyaar Hai. Parent Company:- To a large extent the parent company helps in promoting a brand. The parent company in many cases is so popular that its brand automatically become popular and people become aware about the product.

Brand Equity
The major asset and Liabilities categories are:

Brand Name Awareness - A Brand Building Concept

FACTORS AFFECTING BRAND AWARENESS The popularity of local restaurants such as J.W.Marriot has been boosted by the page 3 mentions in the Bombay Times supplement of The Times of India. Direct Selling: - Some of the companies use direct selling as a platform to create brand awareness. Eureka Forbes water filter AQUA GUARD. Peer Group Opinion: - Peer group opinion also plays an important part in the whole brand awareness exercise. Usually people tend to discuss a lot about the brand and tend to share their experiences or some recent ads they have seen which in turn increases brand awareness of their peers. When opting for cellular network services (irrespective of prepaid or billing), most people generally go by the opinions of their friends and colleagues. Recall Of Ads: - In some cases the brand awareness is also high due to specific ad recall, which is very high. Amaron battery advertisement of race between tortoise and rabbit with the tagline LAST LONG REALLY LONG.

Brand Equity
The major asset and Liabilities categories are:

Brand Name Awareness - A Brand Building Concept

FACTORS AFFECTING BRAND AWARENESS TATA always promotes it brand with its name along with the brand such as TATA INDICA, TATA INDIGO, TATA SALT. Sales Promotions And Offers: - It also helps in making the consumers aware of the brand. Some of the sales promotion activities that companies carry out help them in a big way to make their target aware of the brand. Reliance India Mobiles Monsoon Hungama offer, wherein they offered their WLL services at an affordable price. 1st Mover Advantage: - Usually the company that enters a product category first has good awareness about its brand. Usually people tend to remember the first player to enter the market. Parle products BISLERI in the packaged water segment. Public Relations: - The coverage that the fourth estate and magazines provide a brand also helps in building awareness about a brand.

Brand Equity
The major asset and Liabilities categories are:

Brand Loyalty-A Brand Bulding Concept Brand loyalty is the ultimate goal a company sets for a branded product. A companys main question in relation to selling their products or services use do be: How do I get people to buy my product? Nowadays companies still greatly appreciate the answer to this question but they have also realized that getting customers is not the only thing they need to do. In todays rapidly moving world consumers dont stick with products for life. Advertisements and an increased feeling of independence have created consumers that will switch brands or products as soon as the feel the need to do so. What companys look for in this consumer environment is creating a socalled brand loyalty?

Brand Equity
The major asset categories are:

Brand Loyalty-A Brand Bulding Concept Brand loyalty is a consumers preference to buy a particular brand in a product category. It occurs because consumers perceive that the brand offers the right product features, images, or level of quality at the right price. This perception becomes the foundation for a new buying habit. Consumers initially will make a trial purchase of the brand and, after satisfaction, tend to form habits and continue purchasing the same brand because the product is safe and familiar Brand loyalists have the following mindsets: I am committed to this brand. I am willing to pay a higher price for this brand over other brands. I will recommend this brand to others.

Brand Equity
The major asset and Liabilities categories are:
Brand Loyalty-A Brand Building Concept

LOYALTY SEGMENTATION: Loyalty segmentation helps in building strong brands. A market can usually be divided into the following groups: Non customers: Those who use the competitors brand or are not product class users. Price switchers: Those who are price switchers. The passively loyal: Those who buy out of habit rather than reason. Fence sitters: those who are indifferent between two or more brands. ( these guys sit on the fence and watch - not bothered ) The committed: those who are committed to our brands. (Hard Core Loyal Customers ! These guys are brands Asset ! :) )

Brand Equity
The major asset and Liabilities categories are: Brand Loyalty-A Brand Building Concept LOYALTY SEGMENTATION: The challenges to improve the brands loyalty profile are to increase the number of customers who are not price switchers, to strengthen the fence sitters and committed ties to the brand and to increase the number who would pay more to use the brand or service. Two segments where the companies generally under invest are passively loyal and the committed customers. The passively loyal customers are often taken for granted. At the other end of the spectrum are the highly loyal or committed customers. Firms also tend to take this group for granted. Yet there may be significant potential to increase business from the very loyal. The loyal Marriott customer might be encouraged to select even more than often with a improved portfolio of business support services such as fax machines in rooms. Further there is a risk that loyal customers can be enticed away by a competitor if the performance of the product or service is not improved. For these reasons firms should avoid diverting resources from the loyal core to the non-customers and price switchers. One approach to enhancing the loyalty of fence sitters and the committed is to develop or strengthen their relationship with the brand.

Brand Equity
The major asset and Liabilities categories are:
Brand Recall - A Brand Building Concept A brand (Bisleri) is said to have recall if it comes to consumers minds when its product class (mineral water) is mentioned. It indicates stronger brand position in the mind. Still at a higher level is the top of the mind recall; it is the brand, which comes first to the mind. The top of mind awareness indicates a relative superiority a brand enjoys above others. Sometimes a brand becomes so dominant that it becomes the only recalled brand in the product category. Very few brands are able to achieve dominance. The cases may include Johnson & Johnson baby powder, Dettol antiseptic, Colgate and Cadbury.

Brand Equity
The major asset and Liabilities categories are:

Brand Association - A Brand Building Concept

The associations consumers make with brand support brand equity. These associations may include product attributes, a celebrity spokesperson or a symbol. Brand associations are driven by brand identity-what the organization wants the brand to stand for in the consumers mind. A key to brand building then is to develop and implement brand identity. One key to successful brand building is to develop a brand identity- to know what the brand stands for and to effectively express that identity. Hyundai Santro has clearly positioned itself as the sunshine car and endorsed Preity Zinta known for her bubbly personality to match their positioning statement. Invariably all brands come to acquire a meaning in the mind of the customer. Customers associate different dimensions of the product including its use and use situations to the brands. Brand association, therefore, is anything linked to the memory of a brand. Thus a jingle like Happy days are here again has been associated in the customers mind with Thumps Up. Surf is linked with the economy-minded middle class housewifeLalitaji in the advertisements. The name Tata is associated with quality. It is important to know how strong this association is and for a family name like this, which are the products with which this association is the strongest.

Brand Equity

The major asset and Liabilities categories are:

Perceived Quality A brand will have associated with it a perception of overall quality, which is not necessarily based on knowledge of detailed specifications. The quality perception may take on somewhat different forms for different types of industries. Perceived quality means something different for Compaq or IBM than for Coca-Cola or Pepsi. Perceived quality will directly influence purchase decisions and brand loyalty, especially when a buyer is not motivated or able to conduct a detailed analysis. It can also support a premium price, which, in turn, can create gross margin that can be reinvested in brand equity. Further, perceived quality can be the basis for a brand extension. If a brand is well-regarded in one context, then the assumption will be that it will have high quality in a related context.

The major asset and Liabilities categories are:

Other Proprietary Brand Assets This fifth category represents such other proprietary brand assets as patents, trademarks, and channel relationships. Brand assets will be most valuable if they inhibit or prevent competitors from eroding a customer base and loyalty. These assets can take several forms. For example, a trademark will protect brand equity from competitors who might want to confuse customers by using a similar name, symbol, or package. A patent, if strong and relevant to customer choice, can prevent direct competition. A distribution channel can be controlled by a brand because of a history of brand performance.

Unit-III

9. Aaker Model of Brand Equity

Unit-III
BRAND CONCEPT
10. Designing Marketing Programs to build brand Equity

Unit-III
BRAND CONCEPT
11. Customer Based Brand Equity

Unit-III
BRAND CONCEPT
12. Brand Loyalty

Unit-III
BRAND CONCEPT
13. Measures of Loyalty

Unit-III
BRAND CONCEPT
14. Branding Strategies-product line, range and Umbrella Branding

Brand Strategies
Product Category
Existing New

Brand Name

Existing

Line Extension Multi-brands

Brand Extension New Brands

New

Cobranding

Line Extensions
Introduction of additional items in the same product category under the same brand name :new flavors, forms, colors, sizes, etc.

Multi brands
Introducing new brands into the same product category

All are Lever Brothers products

Co-branding
Two or more well known brands are paired in a single offering

Brand Extensions
Using an existing brand name to launch new products in other categories

Unit-III
BRAND CONCEPT

Unit-III
BRAND PERSONALITY
15. 16. 17. 18. 19. 20. 21. Definition, Measures and Formulation Brand Image Dimensions Stages of CONCEPT MANAGEMENT for Functional Symbolic Experiential Brands