STRATEGIC IMPLICATIONS OF BRANDING Presented By Saranya Vasudevan, 2nd Year MBA.
What does Branding really mean? Branding means much more than just giving a brand name and signaling to the outside world that such a product/service has been stamped with the mark and imprint of an organization. Requires a corporate long term involvement , a high level of resources and skills.
Branding consists of transformation of the product category Brands are a direct consequence of the strategy of market segmentation and product differentiation. The first task in Brand analysis is to define precisely all that the brand injects into the product/service and how the brand transforms it: What attributes materialize? What advantages are created? What benefits emerge? What ideals does it represent?
According to the objective the brand sets itself; transforming the category implies endowing the product with its own separate identity. Too many brands wish only to identify fully with the product category, thereby expecting to control it. In fact they often end up disappearing within it: Polaroid, Xerox, Caddy, Scotch, Kleenex have thus become generic terms.
Brand is a long term vision Brand System Outside brand territory Outside brand territory Evolution of competition, life styles and technology
Cycle of Brand Management Brand Weak Strong Different Product Competition and changes in customers expectations Banal
The Brand is really a contract Brands become credible only through the persistence and repetition of their value proposition. Through time they become quasi contract, unwritten but most effective. This contract binds both parties. Each brand is free to choose its values and propositions, but once chosen and advertised, they become the benchmark for customer satisfaction. On the other hand, customers should be loyal to such a brand.
Brand Requirements Closely forecast the needs and expectations of potential buyers React to technical and technological progress as soon as it can create a competitive edge Provide both volume and quantity at the same time, since those are the only means to ensure repeat purchases. Give meaning to the brand and communicate it to the target market, thereby using the brand as both a signal and a reference for the product’s identity and exclusivity. Increase the experiential rewards for consumption and interaction.
Product and the Brand Branded Product Brand’s intangible values and imagery Halo Effect Product’s visible and differentiating characteristics Branded Aspiration Product satisfaction Expectations
Each brand needs a flagship product A given brand will not be jeopardized by competitors offering similar products, unless there are large quantities of the latter. The problem arises when brands within the same group overlap too much, with one preventing the other from asserting its identity. It is when several brands sell the same product that a brand can become a caricature of itself. Here comes the need of a flagship product for a brand.
Product Line overlap among products Meaning and Direction of Brand B Meaning and Direction of Brand A Products common to all 3 brands Meaning and Direction of Brand C
Brands and other signs of Quality Quality seals are promotional tools. From the corporate point of view, choosing between brand policy and collective signs is a matter of strategy and of available resource allocation.