Brand management


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Brand management

  1. 1. Brand Management
  2. 2. What is a brand? A brand is a name, term, sign, symbol, design or a combination of the above to identify the goods or service of a seller and differentiate it from the rest of the competitors
  3. 3. What does the brand identify? Seller/maker Or Product
  4. 4. A brand comprises of   Tangible attributes Intangible attributes
  5. 5. Consider this…        Nokia= well built ( attribute) Why is it important that it is well built? Well built= reliability (functional benefit) Why is it that reliability is so important? Reliability= phone is on all the time and my friends and family can easily reach me ( emotional benefit) Why is important that you are reachable all the time? I am a responsible person (brand essence)
  6. 6. Tangibles Eg.  Product  Packaging  Labelling  Attributes  Functional benefits
  7. 7. Intangibles Eg.  Quality  Emotional benefits  Values  Culture  Image
  8. 8. Brand Identity It is the marketer’s promise to give a set of features, benefits and services consistently
  9. 9. Consider this…    Weather brand is built by advertising? Or Brand experience
  10. 10. Brand Building Involves all the activities that are necessary to nurture a brand into a healthy cash flow stream after launch
  11. 11. Consider this…     Volvo launches new convertibles. Volvo= safety (every aspect of design) Convertibles= not so safe Volvo dropped the idea.
  12. 12. What kind of activities? Eg.  Product development  Packaging  Advertising  Promotion  Sales and distribution
  13. 13. Brand Equity When a commodity becomes a brand, it is said to have equity
  14. 14. What is brand equity?   The premium it can command in the market Difference between the perceived value and the intrinsic value
  15. 15. What happens when equity increases? Commodity Brand Power Brands Presence + Personality
  16. 16. What happens when brands have high equity?     The company can have more leverage with the trade The company can charge a premium on their product The company can have more brand extensions The company can have some defense against price competition
  17. 17. Most Valuable Global Brands Coca Cola Marlboro $ 36 $ 33 Billion Billion Nescafe Kodak $ 11 $ 10 Billion Billion Microsoft Budweiser Kellogg's Motorola Gillette Bacardi $ 9.8 $ 9.7 $ 9.3 $ 9.2 $ 8.2 $ 7.1 Billion Billion Billion Billion Billion Billion Source: Financial World
  18. 18. Brand Loyalty Pyramid Committed buyer Likes the brand. Considers it a friend Satisfied buyer. Would incur costs to switch Satisfied buyer/no reason to change Switchers/Price sensitive
  19. 19. Types National Brand Private Brand Generic Name Brand
  20. 20. National Brand   products that carry the name of the manufacturer Amul
  21. 21. Private Brand   products that carry the name of the seller, not the manufacturer BSC
  22. 22. Licensed brand   Manufactuers products and sells it under licensed names of others Reid and Taylor
  23. 23. Generic Name Brand   A brand name over which the original owner has lost exclusive claim because all offerings in the associated class of products have become generally known by the brand name (usually that of the first or leading brand in that product class). Xerox is the company “photocopy” is the generic name, Vaseline
  24. 24. Considerations in choosing a brand name    What does the brand name mean? What associations / performance / expectations does it evoke ? What degree of preference does it create?
  25. 25. A brand name should indicate    Product benefits Product quality Names easy to remember, recognize, pronounce    Product category Distinctiveness Should not indicate poor meanings in other markets or languages
  26. 26. Creating the brand Branding decision Brand No brand Brand sponsor Brand name decision decision Brand strategy Brand reposition decision decision Line extensions Individual Brand Manufacturer Blanket family extensions Repositioning Distributor Separate family Multibrands No positioning Licensed Company-individual New brands co brands
  27. 27. Brand name     Individual: the product fails or appears to have low quality the company’s name or image is not hurt Blanket family: development cost is less Separate family: Company-individual: Tata
  28. 28. Brand strategy     Line extensions: introduction of additional items in the same product category (coke regular, diet) Brand extensions: using brand name for products in other category ( Honda four wheeler and two wheeler) Multibrands: additional brands in the same product category ( Kelvinator, Electrolux) New brands: aqua fresh by gsk
  29. 29. Co brands ( Dual Branding)   Intel inside Tata AIG
  30. 30. Brand Associations     What images come to mind? Emotional attachments Personality Reid and Taylor
  31. 31. Brand ambassadors    A brand ambassador is a celebrity or a well-connected person or any person who is used to promote and advertise a product or service. A company achieves some clear-cut goals by using a brand ambassador Giving a face and personality to the brand that is expected to be rubbed off from the brand ambassador
  32. 32. Brand equity models       Brand asset valuator (BAV), developed by Young and Rubicam. Four key components Differentiation: (distinct) Relevance: (appeal) Esteem: (respect) Knowledge: ( familiarity)
  33. 33. Future growth value Brand strength (differentiation and relevance) Unrealized potential D R E Leadership K Unfocused Eroding Brand stature (esteem and knowledge) Current operating value
  34. 34. AAKER model       Five categories of brand assets and liabilities Brand loyalty Brand awareness Perceived quality Brand associations Proprietary assets ( trade marks, patients, etc)
  35. 35. Brand identity     Brand as a product Brand as a organization Brand as person Brand as symbol
  36. 36. Brandz       Model for brand strength Presence: do I know about it? Relevance: does it offer me something? Performance: can it deliver? Advantage: does it offer me something better than others? Bonding : nothing else beats it
  37. 37. Brand resonance    Resonance is characterized by the intensity of the psychological bond that customers have with the brand and their level of engagement with the brand. The first level of the pyramid deals with establishing the identity of the brand. The second layer of the pyramid deals with giving meaning to the brand,  Brand performance is the way the product or service Performance Imagery attempts to meet the consumer’s functional needs,  Brand imagery deals with the way in which the brand Silence attempts to meet customers’ psychological and social needs
  38. 38. Cont…   Third tier of the pyramid to develop a consumer response to the brand  brand judgments: Judgments about a brand emerge from a consumer pulling together different performance and imagery associations. These judgments combine into a consumer’s opinion of a brand  brand feelings: are consumers’ emotional responses to the brand. six brand-building feelings that he regards as important emotions that a consumer can have towards a brand, namely warmth, fun, excitement, security, social approval and self-respect The final tier of the pyramid deals with the consumer’s relationship with the brand that is brand resonance
  39. 39. Brand elements         Are trademarkable devices that serve to identify and differentiate the brand. Criteria for choice of elements Memorable: rin, surf Meaningful: coke diet Likeability: aesthetics Transferable: for other category of products Adaptable: Barbie Protectable: law
  40. 40. Brand Pitfalls   Brand experience must match brand image Calls for managing every brand
  41. 41. Packaging and labeling   A package is the physical container or wrapping for a product. 10 percent of a product's retail price is spent on package development and design and the package itself.
  42. 42. Functions of Packaging        promoting and selling the product Facilitate transportation defining product identity providing information meeting customer needs ensuring safe use protecting the product
  43. 43. Cont…   Promoting and Selling the Product Customer reaction to a package and brand name is an important factor in determining marketplace success or failure. Defining Product Identity Packages can invoke prestige, convenience, status, or other positive attributes.
  44. 44. Cont…   Providing Information Packages give directions for product use, information about contents, guarantees, nutritional information, and potential hazards. Meeting Customer Needs Various sizes meet the needs of different market segments: family packs meet the needs of larger families; smaller packages are made for individuals.
  45. 45. Cont…   Ensuring Safe Use Plastic packaging, tamper-resistant packaging, and childproof containers protect customers. Protecting the Product Packages protect a product during shipping, storage, and display, prevent tampering, and sometimes help prevent shoplifting of the product.
  46. 46. Labeling     A label is an information tag, wrapper, seal, or imprinted message that is attached to a product or its package. A label’s purpose is to: inform about a product’s contents and direction for use protect companies from legal liability contain a brand name, logo, ingredients, special promotional messages, and other useful information
  47. 47. Labeling Laws  Many package labels must meet local, state, and federal standards to prevent manufacturers from misleading consumers.
  48. 48.  NPD