branding leveraging

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  • 1. Brand Building Session XII Brand Leveraging Lectures 1 - 2 of 2
  • 2. Scope of the Presentation
    • The leveraging process
    • Leveraging brand associations
    • The process of brand orientation
  • 3. The Leveraging Process
  • 4. What is Brand Leveraging?
    • Brands may be linked to other entities that have their own knowledge structures in the minds of the consumers
    • Because of these linkages consumers may assume or infer that some of the associations that charecterise the other entities may also be true for the brand
    • In effect, the brand borrows some brand knowledge and depending on the associations some brand equity from other entities
    • This indirect approach of building brand equity is referred to as leveraging secondary brand knowledge for the brand
  • 5. Significance of Brand Leveraging
    • Brand leveraging may be important
    • If the existing brand associations are deficient in any way
      • To create strong, favourable and unique associations and positive responses that may otherwise not be present
    • To reinforce existing associations in a fresh and unique way
  • 6. Extent of Leverage
    • 3 factors affect the extent of leverage
    • Awareness and knowledge of the entity
      • Ideally consumers would be aware of the entity
      • Hold some strong, favourable and perhaps unique association regarding in the entity
      • Have positive judgments and feelings about the entity
    • Meaningfulness of the knowledge of the entity
      • Relevance and connection of the entity associations with the brand
    • Transferability of the knowledge of the entity
      • The actual extent to which the the meaningful and positive associations of the entity are linked to the brand
  • 7. Leveraging Brand Associations
  • 8. Means of Brand Leveraging
    • By linking the brand to
    • Companies
    • Countries or geographic areas
    • Channels of distribution
    • Other brands – Co-branding
    • Characters
    • Spokespersons
    • Events
    • Other third party sources
  • 9. Company
    • Brand leveraging here happens through the branding strategies adopted by the company
    • A corporate brand may evoke associations of
      • Common product attributes, benefits or attitudes
      • People and relationships
      • Programs and values
      • Corporate credibility
    • Brands and companies are often unavoidably linked to the category in which they compete
      • E.g.: Fuel Industry
  • 10. Country of Origin
    • Choosing brands with strong national ties may reflect a deliberate decision to maximise product utility and communicate self-image based on what consumers believe about the products from those countries
    • Geographic associations are possible at a state, regional or city level as well
  • 11. Country of Origin
    • Country of origin associations can be done by
      • The location embedded in the brand name
        • E.g.: Air India
      • The location combined with the brand name
        • E.g.: Bailey’s Irish Cream
      • The locations becoming a dominant theme in the brand advertising
        • E.g.: Fosters – Australian for beer
  • 12. Country of Origin Australia Foster’s Switzerland Swatch Italy Gucci Germany BMW USA Coca-Cola Country Brand
  • 13. Channels of Distribution
    • Channels of distribution can create associations through
      • The products and brands they store
      • The means by which they sell them
      • The advertising and promotion efforts at a retail level
    • The associations related to the store are of key importance
  • 14. Other Brands – Co-branding
    • Co-branding (aka brand bundling or brand alliance) occurs when two or more existing brands are combined into a joint product or are marketed together in some fashion
      • E.g.: ICICI Bank HPCL Visa Card
  • 15. Advantages of Co-branding
    • Borrow needed expertise
    • Leverage equity you don’t have
    • Reduce cost of product introduction
    • Expand brand meaning into related categories
      • Broaden meaning
      • Increase access points
    • Source of additional revenue
  • 16. Disadvantages of Co-branding
    • Loss of control
    • Risk of brand equity dilution
    • Negative feedback effects
    • Lack of brand focus and clarity
    • Organisational distraction
  • 17. Ingredient Branding
    • A special case of co-branding
    • It contains creating equity for materials, components or parts that are necessarily contained within other branded products
    • E.g.: Dolby noise reduction, Teflon nonstick coating, Intel inside
  • 18. Advantages of Ingredient Branding
    • For the supplier of the ingredient
      • Greater sales and higher margins through consumer pull
      • Better long term supplier-buyer relationships
      • Enhanced revenue through twin streams
        • The direct revenue from supplies
        • Royalty generated through display of ingredient brand
  • 19. Advantages of Ingredient Branding
    • For the manufacturer of the host product
      • Enhancing brand equity
      • Entry into new product categories, market segments, distribution channels
      • Sharing of some production and development costs with the supplier of the ingredient brand
  • 20. Disadvantages of Ingredient Branding
    • Suppliers unable to sustain high advertising costs
    • Loss of control
    • Different objectives between the supplier and host
    • Manufacturers’ brand dilution
    • Setting the stage for competitive ingredient branding efforts
      • No expenditure on establishing the importance of the ingredient
      • Spends only on establishing superiority of the ingredient
  • 21. Characters
    • Characters are used to leverage brand knowledge through licensing agreements
    • Successful licensors include
    Sesame Street, Simpsons Television Characters Garfield, Snoopy Cartoon Strip Characters Star Wars, Jurassic Park Movies
  • 22. Spokespersons
    • Using well-known and admired people to promote products is a widespread phenomenon with a long marketing history
    • The rational behind these strategies is
      • To draw attention to the brand
      • To shape the perception of the brand basis the knowledge and perceptions of the famous person
  • 23. Potential Problems with Endorsements
    • Overuse – endorsing too many products
      • Lack of any specific product meaning
      • Seen as overly opportunistic or insincere
      • E.g.: Amitabh Bachan
    • Match between celebrity and product
      • Navratna tel – Amitabh Bachan
    • Endorsers getting into trouble or their popularity dropping
      • E.g.: Mohammad Azharuddin
    • Low credibility
      • Celebrities endorse only for monies
    • Celebrities may distract attention from the brand
  • 24. Events
    • Sponsored events can contribute to the brand equity by
      • Improving brand awareness
      • Adding new associations
      • Improving existing associations
    • E.g.: Standard Chartered Marathon, Ponds Femina Miss India, Manikchand Filmfare Awards
  • 25. Third Party Sources
    • Seals or stamps – Agmark, ISI
    • Endorsements from
      • Leading magazines – Autocar
      • Organisations – SIAM
      • Experts – Hormuzd Sorabji
    • Published studies – JD Powers CSI
    • Awards – CNBC ‘Car of the Year’
  • 26. The Process of Brand Orientation
  • 27. What is Brand Orientation?
    • The organization’s point of view on marketplace relationships
    • Every organization has an attitude—stated or unstated—toward how it should use its resources to build marketplace relationships
    • This brand orientation has a major impact on how the company embraces and uses brand management
  • 28. The Brand Orientation Map B Product/Technology Driven D Market Driven Behaviour/Solution Products Trade End User Functional Relationship Customer Relationship A Sales Driven C Opportunistic Driven
  • 29. The Brand Orientation Map
    • It is possible to discover an organization’s brand orientation by placing it into one of four categories
    • The organization’s perspective on either functional or customer relationships—ultimately, its brand orientation—has a significant impact on its marketing behaviors, investments, and priorities
  • 30. Functional Relationships
    • The chart’s vertical axis is a spectrum that plots an organization’s functional relationship with its marketplace
    • Functional relationship describes how an organization defines and communicates its competency to the marketplace
    • Organizations define their functional relationships with their markets based on either a product relationship or a behavior/solution relationship
  • 31. Functional Relationships
    • Companies favoring a product relationship believe they will maintain competitive advantage by continually delivering a superior product that satisfies a particular need
    • At the other end of the spectrum, we find firms that base their functional relationships on satisfying a broader-based customer need - they do this by satisfying a broader set of customer needs that are defined by a behavior— for example, “athletic performance” shoes as opposed to “running shoes”—a complete, rather than a partial, solution
  • 32. Customer Relationships
    • The other perspective described by this model is the customer relationship
    • This spectrum differentiates organizations based on whether they cater more to the needs of their trade customers—the vendors who sell their products—or to the needs of their end users
    • In marketing jargon, organizations that favor their trade customers put more emphasis on the “push” side of the marketing lever
    • Those at the other end of the spectrum believe they will have greater advantage with “pull” marketing strategies
  • 33. A Sales Driven Organisation
    • The sales-driven organization depicted in quadrant A believes in the superiority of its prod uct
    • It believes in building brand equity primarily with its trade customers, mostly through sales activities and one-on-one relationships
    • E.g.: 3M
  • 34. A Product/Technology Driven Organisation
    • The product/technology-driven organization depicted in quadrant B relies on these abilities to create and sustain superior relationships with its end users
    • Its brand orientation is based on a belief that its superior technology is so valued by consumers that it can dictate terms to, its trade customers
    • Organizations with this type of brand orientation believe that their technical competence is their loudest brand voice and place less emphasis on other dimensions of the brand relationship
    • E.g.: Microsoft  
  • 35. An Opportunistically Driven Organisation
    • The opportunistically driven brand orientation appears in quadrant C, the lower-left side of the graph
    • These organizations believe that their competitive advantage derives from being particularly responsive to the needs of their trade channels
    • Hence, they place a lot of stock in marketplace relationships with trade customers
    • Generally, these organizations build their initial brand equity with a sales-driven orientation
  • 36. An Opportunistically Driven Organisation
    • They then use the success of a particular product to cement that relationship
    • Such companies usually follow this success by expanding their product set based on the opportunities their trade channels dictate
    • They are consequently vulnerable to distressing their brand equity by extending their brand recklessly in reaction to the wishes of their trade customers
    • Certainly, companies with this orientation can be very successful, but they must pay extra attention to their brand management practices  
  • 37. A Market Driven Organisation
    • Finally, we come to the marketing-driven orientation shown in quadrant D
    • Organizations that subscribe to this brand orientation exhibit a richer sense of brand equity due, in most cases, to competitive necessity
    • These companies believe in the value of a functional relationship that goes beyond a product or set of products
    • To maintain an enduring relationship with end users, they know their brand must relate to an important behavior or solution
    • E.g.: Nike  
  • 38. Deciding Brand Orientation
    • What’s the best brand orientation?
    • It depends on many factors
    • In reality, the challenge is to create movement across each axis and evolve brand relationships to support the growth of the organization
  • 39. Thank You!