Brand Decisions

Marketing Management, MBA(GENERAL) 1st sem

1. BRAND DECISIONS BY, SADIAH

2. WHAT IS BRAND? A type of product manufactured by a particular company under a particular name. A name, sign, symbol or design or a combination of them, intended to identify the good or services of one seller or group of sellers and to differentiate them from those of the competitors. A brand for a company is like a reputation for a person, you earn reputation by trying to do hard things well.

3. THE BRAND WHEEL

4. Meanings A brand conveys the following six levels of meanings: Attributes : A brand brings to mind certain attributes. Example: Mercedes suggests expensive, well-built, well- engineered, durable, high-prestige automobiles. Benefits: Attributes must be translated into functional and emotional benefits. Example: The attribute “durable” means that the customer need not buy another car for several years. Values: The brand also says something about the product’s values. Example: Mercedes stands for high performance, safety, and prestige.

5. Cont. Culture: The brand may represent a certain culture. Example: The Mercedes represents German culture: organized, efficient, high quality. Personality: The brand can also project a certain personality. Example: Mercedes may suggest a no-nonsense boss (sophisticated person), a lion, etc. User: The brand also suggests the kind of consumer who buys or uses the product. Example: We would expect to see a 55-year-old top executive behind the wheel of a Mercedes, not a 20-year-old secretary.

6. Brand Identity Brand Identity is basically the face your brand. Brand’s name, logo, colors, tagline & symbol It represents your company’s value, service, ideas and personality.

7. Brand is “a marketer’s promise to deliver a specific set of features, benefits & services” Brands are not built by advertising but by the brand experience.

8. BRAND EQUITY Brand equity is the commercial value that derives from consumer perception of the brand name of a particular product or service, rather than from the product or service itself.

9. Acc to David Allen Aaker - “Brand equity is related to the degree of brand name recognition, perceived brand quality, strong mental & emotional associations and other assets such as patents, trademarks & channel relationship”. Cont.

10. Aaker’s brand equity model

11. Branding Decisions Branding Decisions Brand No Brand Manufacture Distributor Licensed Individual Blanket Family Separate Family Company - individual Line extension Brand extension Multi brands New Co-brands Re- positioning No repositioning Sponsor decision Brand Strategy Brand Repositioning

12. TO BRAND OR NOT TO BRAND IT is wiser to use brand names in modern times. Branding involves cost but gives the following advantages to companies: The brand name makes it easier for the seller to process orders and track down problems. The seller’s brand name and trademark provide legal protection of unique product features.

13. Cont. Branding helps the seller segment markets. Strong brands help build the corporate image, making it easier to launch new brands and gain acceptance by distributors and consumers Consumers want brand names to help them identify quality differences and shop more efficiently.

14. Advantages of Branding Easier to process orders & track down problems Legal protection Brand loyalty Segmentation Build corporate image Easy acceptance of new brands

15. Brand Sponsor Decision A manufacturer has several options with respect to brand sponsorship. Manufacture brand- Kelloggs, Colgate Distributor brand- Pantaloon’s – John Miller, Bare Licensed brand- Gitanjali group – Nina Ricci, Miss Sixty. Middlemen develop their own brands because of two reasons: They are more profitable. The cost incurred in developing store brands is much less. Retailers develop exclusive store brands to differentiate themselves from competitors. Example: Consumers know that Westside shirts are only available at Westside outlets unlike other national brands.

16. SLOTTING FEE BRAND LADDER

17. BRAND PARITY PULL VS PUSH STRATERGY

18. Brand Name Decision Individual names- This policy is followed by HLL, P&G, Nestle etc. Nestle launched Maggi as an individual name. HLL and P&G launch their brands as individual brands like Lifebuoy and Rexona, Wheel, Lux, etc. Seiko launched Pulsar range of watches Blanket family name- This policy is followed by GE, Sony, LG, Philips, Bajaj, Tata, etc. These companies launch new products under the same existing name.

19. ▪ Separate Family Names for all Products: Where a company produces quite different products, it is not desirable to use one blanket family name. Example: Matsushita used three different names for different product classes. It used National for home appliances, Panasonic for entertainment products and Technics for other installations. This policy is also followed by Sears. It uses Kenmore for appliances, Craftsman for tools, and Homart for major home installations. ▪ Company trade name combined with individual product names: This policy is followed by Kellogg (Kellogg’s Corn Flakes, Kellogg’s Rice Krispies etc.) Other examples are Star Network (Star Plus, Star News, Star Gold, Star Movies), Zee Telefilms (Zee TV, Zee News etc.), Hindustan Times (HT City, HT Careers, HT Property), Yamaha (Yamaha RX 100, Yamaha Crux R etc.). The advantage is that the company name legitimizes the new product, and the individual name individualizes the new product.

20. Desirable qualities for a brand name Suggest about the product’s benefits Suggest the product category Suggest concrete, high imagery qualities Easy to spell, pronounce, recognize & remember Distinctive Should not carry poor meanings in other countries & languages

21. Brand Strategy decisions Brand strategy is a plan that encompasses specific long-term goals that can be achieved with the evolution of a successful brand. PURPOSE Development of a strong coherent brand in order to enhance revenue and profit.

22. A company has five choices when it comes to a brand strategy. They are as follows: LINE EXTENSIONS A company introduces a brand line extensions using an established products brand name to launch a new, slightly different item in the same product category Brand line extensions may be: New flavours Package sizes Nutritional content, etc.

23. BRAND EXTENSIONS A brand extension occurs when a firm uses an established brand name to introduce a new product. Since the market is already aware of the existing products that are associated with the brand, the new product will reach out faster to the customer. Example; Dettol, colgate, Loreal

24. BRAND DILUTION The weakening of the power of a brand that occurs when a company has too many brands and spreads its resources too thinly trying to support them all. Line extensions and Brand extensions lead to brand dilution Example; Blackberry MULTIBRANDS Marketing of more than two competing and almost identical products that belongs to a single organisation and is filled under different and unrelated brands is called multibranding. The core idea of multibranding is to increase the overall market share.

25. NEW BRAND A new brand is created when a company wants to launch a new product under a new category, but none of its already existing brand names are appropriate for that product. But the cost of developing a new brand name and the risks associated with it also cannot be ignored. COBRANDS A marketing strategy and advertising partner ship between two seperate brands or organization who come together to generate unique values for their respective consumers.

26. Same company co branding HUL can promote a packet of knorr soup with a packet of bru coffee. Joint venture co-branding Snapdeal offering 5% discount on HDFC debit cards Ingredient co-branding Intel for dell Multiple co-branding citibank,american airline & visa credit card partnership

27. BRAND REPOSITIONING However well a brand is currently positioned, the company may have to reposition it later when facing new competitors or changing customer preferences. Example: Cadbury, MacDonald’s, 7-Up