Brand occupies space in the perception of the consumer, and is what results from the totality of what the consumer takes into consideration before making a purchase decision (Pickton and Broderick 2001).So branding is a strategy, and brand is what has meaning to the consumer.
A housewife does not buy Surf Excel because it is written in a specific font
Brand Equity is the addition of the brand's attributes including reputation, symbols, associations and names. Then the financial expression of the elements of brand equity is called Brand Value.
Personality: Emotional bond with the customerGenerates relationships measurably stronger than ordinary brandsPresence: Seem to be present everywhere, enforcing distinctivenessNational/international scaleSuccessful brand extensionsMultiple concept and channels
Transcript of "Branding"
BRAN D I NG
BRAND –WHAT IS IT?“ A name, term, sign, symbol ,or design or acombination of them, intended to identify thegoods or services of one seller or group ofsellers and to differentiate them from those ofcompetitors.”
BRANDINGBRANDING is a strategy used by marketers.Pickton and Broderick (2001) describe brandingas Strategy to differentiate products andcompanies, and to build economic value for boththe consumer and the brand owner.
From Products to Brands Understanding Brand Building BrandingProductstobrands
From Products to Brands Understanding Branding Brand Building Brand v/s. ProductProductstobrands• A brand is more distinctive than a product• It is first of all a name, a means of identification• Secondly it s a set of added values offering both functional and psychological benefits Above all ‘a brand is a promise’
From Products to Brands Understanding Brand Building BrandingProductstobrands A Brand Is A PromiseA seller’s promise to deliver consistently a specific set of features, benefits and services to buyers.
Brand as an Asset• “If Coca Cola lost everything except for ‘the formula’ and its brand name , it could walk into any bank in the world and get $100 billion loan to start from the scratch” Fortune Magazine
Understanding Branding Understanding Brand Building Branding Products Attributes Management Architecture to brandsName LogoColours Essence
Attributes Understanding Brand Building Branding Name Logo Attri but es Colours EssenceBrand Name• Short Kodak, Fuji CNN an AOL Time Warner Company• Distinctive • Toyota’s Lexus is distinctive. Toyota’s Luxury commonplace • Orange was a striking name in a world of telecommunications• Not mean anything rude or silly in another language Big Macs( McDonald’s) is a slang for big breasts in Canada
Attributes Understanding Brand Building Branding Name Logo Attri but es Colours EssenceBrand Logo1.Simple logo, designed to fit both eyes (Mercedes three star)2.Logo font has to be clear and legible3.Uniqueness4.Relevancy5.Appealing6.Consistency7.Contrast
Attributes Understanding Brand Building Name Logo Branding Attri Colours Essence but esBrand Colours• Colours have meanings • Purple means royalty • Red is energetic • Blue is peaceful• Opposite colours can differentiate • Coke is red, Pepsi is blue • Kodak is yellow, Fuji is green• Colours can help you stand out • FedEx’s orange and purple packet stands out in corporate blue
Attributes Understanding Brand Building Branding Name Logo Attri but Colours Essence esBrand Essence• A brand must “leverage a compelling truth” • Linux stands for freedom as opposed to Microsoft’s monopoly• A brand should mean a single powerful thing: the essence • Essence of Volvo is Safety • Essence of Tata is trust • Essence of Fevicol is bonding
Attributes Understanding Brand Building Branding Name Logo Attri but Colours Essence esBrand Essence• A brand should also be clear of what is not its essence • In India, STAR NEWS is not a channel of the masses unlike STAR PLUS• A brand should drive single mindedly its essence • Volvo has been selling safety for 35 years • Raymond has been selling the complete man for over 2 decades • Essence of Dettol is protection against germs• A brand loses its essence if it starts meaning a lot of things • What is Miller :A regular, light,draft,cheap, expensive beer
Management Understanding Brand Stealth Co-Brand Branding Building Brand Man Fighting age Multi-Brand ment BrandCo-BrandSame Company Co-BrandingJoint Venture Co-Branding
Management Understanding Brand Stealth Co-Brand Branding Building Brand Man Fighting age Multi-Brand ment BrandStealth Brand• Brand building that attracts customer attention but not of rivals • Home-to-home, word of mouth / PR, internet community building• Good option when unsure of a new medium/market • Little promotion for Maytag website as opposed to a buy.com. Maytag sold 1000s of Neptune washers on web
Management Understanding Brand Stealth Co-Brand Branding Building Brand Man Fighting age Multi-Brand ment BrandFighting Brand• Pricing led branding option. Works as a competitive response. • Smirnov (Heublein) Case • Smirnov attacked by W’schmidt @ $1 less • Heublein raised the price of Smirnov • Heublein introduced Reiska(fighting brand) at the same price point as W’schmidt • Heublein added Popov lower than both
Management Understanding Brand Stealth Co-Brand Branding Building Brand Man Fighting age Multi-Brand ment BrandFighting Brand• Built as new, independent brand • Prevents dilution of the leading brand • HLL introduced Wheel to fight Nirma
ManagementImmutable Law of SiblingsThere is a time and place to launch a second brand
Management Understanding Brand Stealth Co-Brand Branding Building Brand Man Fighting age Multi-Brand ment BrandMulti Brand• Key to a multi-brand approach is to give each sibling a unique identity • Time, Fortune,Life, Money, People
Management Understanding Brand Stealth Co-Brand Branding Building Brand Man Fighting age Multi-Brand ment BrandMulti Brand..• Common product area focus – Shampoos: Clinic Plus, Ayush, Sunsilk• Single attribute segmentation – Price:Maruti 800, Zen, Esteem• Sibling creates a new category – Herbal Anti-Dandruff category by Ayush
Understanding Branding Understanding Brand Building BrandingProducts Attributes Management Architectureto brands House of Endorsed Brands Brand Sub Brand Branded House
ArchitectureImmutable Law of ContractionA brand becomes stronger when you narrow its focus
Architecture Understanding Brand House of Endorsed Branding Building Brands Brand Arc Branded hite Sub Brand ctur House eHouse of Brands• Often dictated by corporate strategy.• Gives an opportunity for the company to focus on each brand and contract its scope.
Architecture Understanding Brand House of Endorsed Branding Building Brands Brand Arc Branded hite Sub Brand ctur House eEndorsed Brand• Endorsement is used as a device to transfer brand assets from one brand(corporate) to another • Titan from TATA, transferring trust • i-pod, mac from apple
Architecture Understanding Brand House of Endorsed Branding Building Brands Brand Arc Branded hite Sub Brand ctur House eSub Brand• Inside out branding. Company pushes core brand in different directions• Sub-branding can destroy what branding builds • Donna Karan menswear, DKNY, DKNY menswear, DKNY kids
ArchitectureImmutable Law of CompanyBrands are brands, companies are companies.There is a difference.
Architecture Understanding Brand House of Endorsed Branding Building Brands Brand Arc Branded hite Sub Brand ctur House eBranded house• Consumers buy brands, not companies
What Is Brand Building? Involves all the activities that arenecessary to nurture a brand into a healthy cash flow stream for the company after launch
Advertising does a lot to help build brands Every ad contributes to make the brand what it is in the minds of the consumer – David Ogilvy
• Brand equity is the added value endowed to products and services
How to measure equity?• The premium a brand can command in the market• The difference between the intrinsic and perceived value of the product
Building Brand Equity• Distinguish product from others in the market – Value proposition• Align what it says about the brand in advertising with what it actually delivers – Creating the brand
Power Brands• Generates enormous profits• Expands future strategic opportunities
What do power brands have that others don’t?• A distinctive product• Delivering brand promise• Personality and presence
Creating the brand• Choosing brand name• Developing rich associations and promises• Manage customer brand contacts to meet and exceed customer expectations
Choosing a brand name• What does it mean?• What performance/ expectations/ associations does it evoke?• What degree of preference does it create?
Brand names should denote• Product benefits• Product quality• Be easy to pronounce/remember/recognize• Be distinctive• Not have poor meanings in other countries or languages
Brand Association – All brand related thoughts , feelings perceptions, images, experiences, beliefs, attitudes and so on that become linked to the brand node. The link to favourable images, celebrities, geographic regionsi.e. Red Strip - Jamaica, VW - Germany, Screech - NFLD Bailey’s - Eire• Paul Hogan - Subaru• James Earl Jones (voice of CNN)• Chihuahua - Taco Bell• Jordan - Nike• Julia Louis Dry fuss - Nice and Easy• Candice Bergen - Sprint Canada
Brand Associations• ‘owned’ word• Slogans• Colours• Symbols and logos
Brand Awareness –consumers’ ability to identify the brand under different conditions , as reflected by their brand recognition or recall performance .e.g.. Snapple ice tea, jeans-Levi’s, walkman - SONY
Brand LoyaltyThe degree to whichcustomers arecommitted to furtherpurchases e.g.. I willalways buy Reebok
Brand Ambassadors• These are used to create the Brand personality, just like a human being. Therefore in some way the values and personality of the ambassador rubs off into the brand. Therefore the brand and choice of the ambassador must fit.
Brand Status Step up advertising Cash cow. Need to sustain brandEsteem building activities Product should be Troubled brand. phased out Product upgradation required Familiarity
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