The Product and the Product Mix
• Brand decisions
– What is a brand?
Meaning of a brand
• Commonly used research approaches
to determine brand meaning:
– Word associations…what comes to your mind
– Personifying the brand…. what do you identify the
– Laddering up the brand essence
• Brand essence…deeper reason for buying
• Laddering up…. building further on the reasons
Building Brand Identity
– Brand bonding
• Brands are not built by advertising
but by the brand experience
• Everyone in the company lives the brand
• Three ways to carry on internal branding –
– Desire, and
– Deliver on the brand promise
Clarify the corporation’s basic values and
build the corporate brand.
– Use brand managers to carry out the tactical work.
– Develop a more comprehensive brand-building plan.
– Define the brand’s basic essence to be delivered
wherever it is sold.
– Use the brand-value proposition as the key driver of the
company’s strategy, operations, services, and product
– Measure their brand-building effectiveness, not by the
old measures of awareness, recognition, and recall, but
by a more comprehensive set of measures including
customer-perceived value, customer satisfaction,
customer share of wallet, customer retention, and
Building Brands in the new economy
• Brand Equity
– Brand awareness
– Brand acceptability
– Brand preference
• Aaker’s five levels of customer attitude:
– The customer will change brands, especially for
price reasons. No brand loyalty.
– Customer is satisfied. No reason to change brands.
– Customer is satisfied and would incur cost by
– Customer values the brand and sees it as a friend.
– Customer is devoted to the brand.
– Value of Brand Equity
• Brand valuation
• Competitive advantages of high brand equity:
– The company will have more leverage in bargaining
with distributors and retailers because customers
expect them to carry the brand.
– The company can charge a higher price than its
competitors because the brand has higher perceived
– The company can more easily launch extensions
because the brand name carries high credibility.
– The brand offers some defense against price
• Branding Challenges
– Branding Decision: To Brand or Not to Brand?
An Overview of Branding Decisions
The Product and the Product Mix
Why branding ????
– Branding gives the seller several advantages:
• Brand name makes it easier for the seller to process
orders and track down problems
• Seller’s brand name and trademark provide legal
protection of unique product features
• Branding gives the seller the opportunity to attract a loyal
and profitable set of customers.
• Branding helps the seller segment markets.
• Strong brands help build corporate image, making it
easier to launch new brands and gain acceptance by
distributors and consumers.
What’s in a name?
– Desirable qualities for a brand name
• It should suggest something about the product’s benefits
• It should suggest the product or service category
• It should suggest concrete, “high imagery” qualities
• It should be easy to spell, pronounce, recognize, and
• It should be distinctive
• It should not carry poor meanings in other countries and
A Brand Must be More
Than a Name
• A brand must trigger words or associations (features and
• A brand should depict a process (McDonald’s, Amazon).
• A great brand triggers emotions (Harley-Davidson).
• A great brand represents a promise of value (Sony).
• The ultimate brand builders are your employees and
operations, i.e., your performance, not your marketing
• Four available strategies:
– Individual names…Dove, LUX
– Blanket family names….Amul
– Separate family names for all products in a
– Corporate name combined with
individual product names…Cadbury’s
Tools for Building Brands
• Advertising (e.g.,Absolut Vodka)
• Sponsorships (e.g., Kodak and Olympics)
• Clubs (e.g. Nestle’s Maggi Club)
• Company visits (e.g., Cadbury’s)
• Trade shows
• Traveling exhibits
• Worldwide web casts of presentations, roundtables, entertainment
• Distribution outlets (e.g., Haagen-Dazs)
• Public facilities
• Social causes ( Tata Memorial Hospital)
• High value for the money ( Ikea.)
• User community building ( Harley-Davidson)
• Founder’s personality ( Colonel Saunders- KFC)
• Celebrity spokespersons
– Short, suggestive, memorable, unique,
• Logo and typeface
• Music (Jingles)
• Theme lines (Pure for Sure!)
• Stationery and business cards
• Dress code
There is No Such Thing as a
Commodity: Differentiate by Segments
• Mobil conducted a study of 2,000 gasoline buyers
and identified five segments:
– Road Warriors (always driving)
– True Blues (brand or dealer loyal)
– Generation F3 (liked convenience store aspect)
– Homebodies (fills up at nearest station)
– Price Shoppers (20% of all the buyers)
• Mobil rolled out Friendly Serve: cleaner property,
bathrooms, better lighting, well-stocked stores, and
• Mobil charged $.02 more and sales increased by 20-
– Brand Strategy Decision
– Functional brand...to satisfy a functional need
– Image brand…to convey an image “Cross Pens”
– Experiential brands…need to experience it
• Line Extensions
– Introducing additional items in the same product
category…Clinic, Clinic Plus
• Brand extensions
– Using existing brand to enter newer categories e.g
Dettol soap, Dettol antiseptic lotion
– Wills cigarettes & Wills lifestyle apparels
Don’t Overuse Advertising
to Build a Brand
• People don’t pay that much attention to ads anymore.
• Some exceptional TV ads grab attention but do not
provide motivation. e.g Ericsson ad
• Advertising doesn’t have much credibility or believability.
• The existence of so much advertising makes advertising
less effective. Yet the cost of advertising keeps rising.
Packaging & Labeling
• Packaging and Labeling
• Primary Package
• Secondary Package
• Shipping Package
– Factors which have contributed to the growing use
of packaging as a marketing tool
• Consumer affluence
• Company and brand image
• Innovation opportunity
Packaging & Labeling
• Consumerists have lobbied for:
– Open dating
– Unit pricing
– Contents labeling
What Are the Most Frequent Causes of
• Failure to live up to the brand promise.
• Failure to adequately support the brand.
• Failure to adequately control the brand.
• Failure to properly balance consistency and change with
• Failure to do brand equity measurement and