Strategic implications of branding


Published on

Published in: Business
  • Be the first to comment

Strategic implications of branding

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