Introduction to Brand Management. Session7 8.pptx

Introduction to Brand Management. Session 7-8

1. Sessions 7-8 FARHAN SHEIKH BRAND MANAGEMENT GBBM 555

2. Marcom Marketing Communication can be corporate and product based. However, the former is more known as corporate communication Marcom elements include (but are not limited to): Branding Packaging Graphic design Publicity Advertising PR Promotion Online / Digital Sales promotion Customer Relations / Services / Support / Cross Selling The list goes on and on The integration between the modes regarding the com is IMC with consistence, strategic vision and intrinsic strengths of allied channels being key elements

3. Marketing Mix The 4 P’s 3 More P’s 1 More P for our local companies Pull and Push Strategy ATL, BTL and TTL channels

4. ICICI Reunion Directv – Funeral Directv – Dinner Party

5. Scotch Brite Eball

6. Brand Extensions Develop a new brand, individually chosen for the new product Use a combination of a new brand with an existing brand.

7. Brand Extensions When a firm uses an established brand name to introduce a new product. 1. Line Extension: The 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. 2. Category Extension: The parent brand is used to enter a different product category from that currently served by the parent brand.

8. Advantages of Extensions Facilitate new product acceptance Provide feedback benefits to the parent brand and company.

9. Advantages of Extensions Facilitate New product acceptance Improve brand Image Reduce perceived risk of customers Improved distribution and trial Increase efficiency of promotional expenditures Reduce costs of introductory and follow-up marketing programs Avoid cost of developing a new brand Allow for packaging and labeling efficiencies Permit consumer variety-seeking

10. Advantages of Extensions Provide Feedback benefits to the Parent Brand and Company Clarify brand meaning Enhance parent brand image Increase market coverage Revitalize the brand Permit subsequent extensions

11. Disadvantages Confuse or frustrate consumers Encounter retailer resistance Hurt parent brand image in case of failure Cannibalize sales of parent brand Dilute brand meaning

12. Brand Extension - Conclusions Parent brand has favorable associations Perception fit between the parent brand and the extension product. High-quality brands stretch farther than average-quality brands Brand that is seen as prototypical of a product category can be difficult to extend outside the category Emphasizes information about the extension, rather than reminders about the parent brand.

13. BRAND CHALLENGES: The brand has to consistently deliver in an environment that is dynamic be it consumers, competitors, or political and legal environment There can be a number of challenges that have to be managed on the path to success for a strong brand Some of them include the following:

14. Quality aspect: The quality is the prime satisfier of the need and want of the consumer Organizations, therefore, not only have to design a quality product but also need to deliver consistent quality over period of time Changing consumer trends: The world is getting hypercompetitive and consumer trends as well as consumer purchase behavior, changing consumption patterns, evolution of the taste and preference of the people are evolving Brand managers need to grow and sustain their brand long term so that the coming generation adopts the brand with the same keenness as the previous generation did

15. Introducing technologically advanced products: Brands need to evolve to keep pace with advances in technology Adoption of technology helps the brand create a buzz and stay young and relevant for consumers overtime For example: Whirlpool – the brand value has declined due to its ‘technological obsolescence’ Also Kodak, Dentonic and Blackberry to name a few Growing number of private labels, or the retailers own labels: Retailers stand to gain by launching their own private labels as they get a gross margin of 60-70 percent on private labels compared to the 30 percent from manufacturer brand

16. Retailers advertise established brands to attract footfalls to their stores and then sell store brands to price sensitive customers Brands becoming generic: There are instances of dominant brands in product category that were so widely used that they became generic for that product category For example: Xerox – the brand name is generally used to mean photocopying Scotch Tape, Kleenex, Surf, Hoover, Jacuzzi, Jeep etc Organizations need to be very careful when their brand becomes a market leader They constantly need to protect, nurture and communicate the differences of their brands from the other competing brands to avoid falling into this trap

17. Lack of effective and consistent communication: A brand has to communicate with its target audience to attract new customers, as inability to attract new customers hastens the decline of the brand A brand that advertises itself and creates top-of-the-mind brand recall denotes that it is a key player in the market Keeping the brand young: One of the challenges for brand managers is to keep the brand young over a period of time Consumers need to feel that the brand belongs to them and is not a brand of primitive era They should feel excited about using the brand and consider it as their own rather than as their father’s or grandfather’s brand