Introduction to the concept of" BRAND" and BRAND MANAGEMENT

introduction to the concept of branding

1. Introduction to Brand Prepared by: Dr. Shamini T V

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

3. A brand is a complex symbol that can convey up to six levels of meaning Attributes Benefits - Functional & Emotional Values Culture – represent certain culture Personality User

4. Brand Pyramid Dove Soap More attractive Soft Skin Cleansing/ moisturising cream Beliefs and Values Brand ’ s Benefits Brand Attributes

5. A brand is essentially a marketer ’ s promise to deliver a specific set of features, benefits and srevices consistantly to buyers The marketer must think that he is offering a contract to the customers regarding how the brand will perform Brand bonding will occours when customer s experience the company as delivering on its benefit promise

6. Brands are built not by advertising but by the brand experience Branding is endowing products and services with the power of brand Brand knowledge consists of all the thoughts, feelings images, experiences, beliefs and so on that become associated with the brand

7. Types of Brands Individual Brands The most common type of brand is a tangible, individual product, such as a car or drink. This can be very specific, such as the Kleenex brand of tissues, or it can encompass a wide range of products. Product brands can also be associated with a range of offerings, such as the Mercedes S-class cars or all varieties of Colgate toothpaste.

8. Service Brands A service brand develops as companies move from manufacturing products to delivering complete solutions and intangible services. Service brands are characterized by the need to maintain a consistently high level of service delivery. This category includes the following: Classic service brands (such as airlines, hotels, car rentals, and banks) Pure service providers (such as member associations) Professional service brands (such as advisers of all kinds—accountancy, management consultancy) Agents (such as travel agents and estate agents) Retail brands (such as supermarkets, fashion stores, and restaurant

9. Organization Brands Organization brands are companies and other entities that deliver products and services. Mercedes and the U.S. Senate each possess strong organization brands, and each has associated qualities that make up their brand. Organizations can also be linked closely with the brand of an individual. For example, the U.S. Democratic party is closely linked with Bill and Hillary Clinton and Barack Obama.

10. Personal Brands A person can be considered a brand. It can be comprised of one individual, as in the cases of Oprah Winfrey or Mick Jagger . Or it may be composed of a few individuals, where the branding is associated with different personalities. With the advent of the Internet and social media, the phenomenon of personal branding offers tools and techniques for virtually anyone to create a brand around themselves..

11. Group Brands Group branding happens when there is a small group of branded entities that have overlapping, interconnected brand equity. For example, the OWN group brand of the Oprah Winfrey Network and the brand of its known members (Oprah and her team) are strongly connected.

12. Event Brands Events can become brands when they strive to deliver a consistent experience that attracts consumer loyalty. Examples include conferences the TED series; music festivals like Coachella or SXSW; 

13. Geographic Place Brands Many places or areas of the world seek to brand themselves to build awareness of the essential qualities they offer. Branded places can range from countries and states to cities, streets, and even buildings. Those who govern or represent these geographies work hard to develop the brand. Geographic branding is used frequently to attract commerce and economic investment, tourism, new residents, and so on.

14. Private-Label Brands Private-label brands, also called own brands, or store brands, exist among retailers that possess a particularly strong identity (such as Save-A-Lot). Private labels may denote superior, “select” quality, or lower cost for a quality product.

15. Media Brands Media brands include newspapers, magazines, and television channels such as CNN.

16. E-Brands E-brands exist only in the virtual world. Many e-brands, such as Amazon.com, have a central focus on providing an online front end for delivering physical products or services.

17. Strategic Brand Management Strategic brand management involves the design and implementation of marketing programs and activities to build, measure, and manage brand equity. 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

18. Strategic Brand Management Process Mental maps Competitive frame of reference Points-of-parity and points-of-difference Core brand values Brand mantra Mixing and matching of brand elements Integrating brand marketing activities Leveraging of secondary associations Brand Value Chain Brand audits Brand tracking Brand equity management system Brand-product matrix Brand portfolios and hierarchies Brand expansion strategies Brand reinforcement and revitalization KEY CONCEPTS STEPS Grow and Sustain Brand Equity Identify and Establish Brand Positioning and Values Plan and Implement Brand Marketing Programs Measure and Interpret Brand Performance

19. Brand strategy decisions Brand Positioning Attributes Benefits Beliefs and Values Brand name Selection Selection Protection Brand sponsorship Manufacturer ’ s Brand Private Brand Licencing Co Branding Brand development Line extensions Brand extensions Multibrands New Brands Brand/ No Brand Repositioning No repositioning

20. Branding Strategy Decisions Leveraging the power of the brand name to cover the market more effectively Brand associations Why do we do it? Phenomenally expensive to create and promote a new brand name Too many brands out there Increase productivity of current marketing programs

21. Umbrella branding When you have many sub-brands, each linked to a common brand, then the common brand is known as the umbrella brand E.g. Ford Taurus, Ford Explorer, Ford Focus, Ford Ranger, Ford Five Hundred, Ford Freestyle, Ford Expedition, Ford Thunderbird, etc.

22. Flanker Brand Different brand name – same product Purpose : Pre-empt competition, cover the market more completely (protect your flanks) Problem : some cannibalization is expected. E.g. Thums Up and Coca Cola in India General Mills – Robin Hood and Gold Medal brand flour Tide and Cheer from P&G

23. Brand Extension Same brand name, new product line e.g. Reebok shoes and Reebok water. Nike shoes and Nike casuals. Chevy cars and Chevy men ’ s cologne. Hooters restaurants and Hooters airline The concept of congruence determines the success of a brand extension strategy. E.g. Johnson ’ s baby powder and Johnson ’ s baby oil – high congruence. But imagine Lysol toilet bowl cleaner and Lysol toothpaste!!!

24. Line Extension Same brand name, different product in the same product line. E.g. Ivory soap and Ivory shampoo; IBM PCs and IBM laptops Line extensions are safer strategies than brand extensions since congruence is always higher.

25. Ingredient branding Your brand is sold in the B2B market as a component of another product. You want the brand to get consumer recognition and equity. What do you do? Tell consumers about your brand ’ s presence in the final product Ingredient branding : Branding an ingredient of the main brand, which is often manufactured by a different company. E.g. Intel Inside is an ingredient brand on IBM, Dell, Compaq, etc. computers;

26. Co-branding You have a strong brand but want to penetrate the market even better. What do you do? Complementary Branding OR Co-branding – when two or more mutually reinforcing brands get together to jointly promote themselves (one is not an ingredient of another). E.g. co-branded credit cards like Chase MasterCard,

27. Brand Equity Brands vary in the amount of power and value they have in the market place. Kotler Defines Brand equity as the positive differential effect that knowing the brand name has on customer response to the product or service. Brand equity results in customers showing a preference for one product over another when they are identical.

28. Brand Equity Definition by DAVID AAKER Brand Equity is defined as the unique set of brand assets and liabilities that is linked to a brand. It is the net result of all the investment and effort that a marketer put into building a brand.

29. Brand Equity It is the the customer ’ s subjective and intangible assessment of the brand, above and beyond its objectively perceived value Brand Awareness Brand Acceptability Brand Preference Brand Loyalty

30. Perceived Quality Percevied quality is how the customers evaluate different brands on quality If the brand is perceived to be of premium quality, the customer will be willing to pay a premium for it. High perceived means higher return on investment.

31. Brand awareness Brand awareness provides the brand with a sense of familiarity and people like the familiar. Familiarity can drive the buying decisions Brand awareness can be a signal of presence, commitment and substance The salience of a brand will determine if it is recalled at a key time in the purchasing process. Brand awareness is an asset that can be remarkably durable and thus sustainable.

32. Brand Identity Brand identity is the associations attached to a firm and its brands A brand association is anything that is directly or indirectly linked in memory to tha brand. Consumers associate abrand with certain tangible and intangible attributes. Each company has to carve a brand identity and develop it further to build strong brands.

33. Brand Identity Brands gain strategic positions by association with: User or applications (Nestle Milo with sports) Product class (Maggi as instant Noodles) Product user (Lifebuoy for the working class) Life style and feelings (The Pepsi generation) Personality (surf for quality conscious, upmarket ladies) Symbol (Penguin of Kelvinator)

34. Brand Loyalty A prime enduring asset for some business is the loyalty of the installed customer base. Brand loyalty can develop in many ways:- The customer may try a brand and on being satisfied with the used experience, repeat the purchase. Or He may compare the attributes of different brands available in terms of their ability to render the desired service, choose one and repeatedly purchase it.

35. Brand Loyalty Three levels of brand loyalty: 1) Brand loyal 2) Brand insisters 3) Brand prefers

36. Brand Loyalty -Advantages Reduces marketing costs Creates substantial entry barriers Provides for trade leverage Time to respond competitive threats Large satisfied customer base boosts the image and acceptance.

37. Attributes which results in Brand Equity Usership of the Brand Consumer loyalty towards the Brand Percieved quality of the Brand Positive symbols of Brand Favourable associations around the Brand etc. By continuously monitoring these attributes the marketer convert what really a product into a Brand

38. Brand Equity - Advantages Allows the company to charge a price premium compared to competitors with less brand equity Strong brand names simplify the decision making 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 the products

39. Brand Equity - Advantages Use as leverage when introducing new products High brand equity makes sure the products are included in most consumers consideration set. It can lead to greater loyalty from customers It offers a strong defence against new products and new competitiors

40. Brand Equity In simple terms Brand Equity is the value or worth of the Brand

41. Brand Equity, A financial concept Brand is a tradeable but intangible asset Brand ’ s Market share, Profitability, Future potential – are the crusial considerations for fixing the price of a brand. Coca-Cola paid Rs. 200 crore to buy out Parle Brands – Thumps Up, Gold Spot, Citra, Limca. Godrej Paid Rs 80 crore to buy out Transelectra Brands – Good Knight and Hit SmithKline sold its Crocin brand for Rs.45/- crore

42. A brand ’ s Equity can be Quantified and Measured Methodologies Brand Earning Multiple approach Involves - determination of brand strength score, Assesment of brand value /Brand earnings Multiple and Charging the adequate return on capital to screen out the return on non brand assets. This approach was Propounded by INTER- BRAND, the Research Agency

43. A brand ’ s Equity can be Quantified and Measured Methodologies Brand equity Index Model Brand equity is calculated by multiplying the relative price of the product by market share in units. The product is then multiplied by a measure of loyalty or durability representing the staying power of the brand.

44. A brand ’ s Equity can be Quantified and Measured Methodologies Royalty-based approach Involves – the hypothetical estimation of the amount of Royalty income by the firm, that could be generated, if the subject brand was leased by an independent third party owner to the bussiness currently using brand.

45. A brand ’ s Equity can be Quantified and Measured Methodologies Profit Split Approach Involves – the firm assumes that an independent third party owns the brand and licences it for an associated profit. The firm has to estimate the amount of profit that could be split between the brand and other intangible assets.

46. A brand ’ s Equity can be Quantified and Measured Methodologies Incremental cash flow from branding Brand equity is estimated by determining the cash flows of a brand and subtracting the cash flows from an unbranded product.

47. New Branding Challenges Brands are important as ever Consumer need for simplification Consumer need for risk reduction Brand management is as difficult as ever Savvy consumers Increased competition Decreased effectiveness of traditional marketing tools and emergence of new marketing tools Complex brand and product portfolios

48. The Customer/Brand Challenge In this difficult environment, marketers must have a keen understanding of: customers brands the relationship between the two

49. The Concept of Brand Equity The brand equity concept stresses the importance of the brand in marketing strategies . Brand equity is defined in terms of the marketing effects uniquely attributable to the brand. Brand equity relates to the fact that different outcomes result in the marketing of a product or service because of its brand name, as compared to if the same product or service did not have that name .

50. The Concept of Customer-Based Brand Equity Customer-based brand equity Differential effect Customer brand knowledge Customer response to brand marketing

51. Determinants of Customer-Based Brand Equity Customer is aware of and familiar with the brand Customer holds some strong, favorable, and unique brand associations in memory

52. Building Customer-Based Brand Equity Brand knowledge structures depend on . . . The initial choices for the brand elements The supporting marketing program and the manner by which the brand is integrated into it Other associations indirectly transferred to the brand by linking it to some other entities

53. Benefits of Customer-Based Brand Equity Enjoy greater brand loyalty, usage, and affinity Command larger price premiums Receive greater trade cooperation & support Increase marketing communication effectiveness Yield licensing opportunities Support brand extensions.

54. Customer-Based Brand Equity as a “ Bridge ” Customer-based brand equity represents the “ added value ” endowed to a product as a result of past investments in the marketing of a brand. Customer-based brand equity provides direction and focus to future marketing activities

55. The Key to Branding For branding strategies to be successful, consumers must be convinced that there are meaningful differences among brands in the product or service category. Consumer must not think that all brands in the category are the same. PERCEPTION = VALUE

56. Motivation for Customer-Based Brand Equity Model Marketers know strong brands are important but aren ’ t always sure how to build one. CBBE model was designed to be … comprehensive cohesive well-grounded up-to-date actionable

57. Thank You