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Brand Management


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An overview of Brands and Branding

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Brand Management

  1. 1. BRANDS<br />
  2. 2. 22 Immutable laws of Branding<br />Rhys & Rhys<br />
  3. 3. Law of expansion<br />The power of a brand is inversely proportional to its scope<br />When you put a brand on everything, that name loses its power<br />
  4. 4. Law of contraction<br />A brand becomes stronger when you narrow its focus<br />Narrow focus<br />Stock in depth<br />Buy cheap<br />Sell cheap<br />Dominate the category<br />
  5. 5. Law of publicity<br />Brands are build with publicity and maintained with advertising<br />Best way to make news is to advertise a new category, not just a new product<br />Eg- Lotus notes – the 1st successful groupware product<br />
  6. 6. Law of advertising<br />Kicks in when a brand outlives its publicity potential<br />Brand leaders must advertise leadership. Leadership indicates the product is better.<br />Keeps away the competition<br />
  7. 7. Law of the word<br />Focus on owning a word in the prospects’ mind. A word nobody else owns.<br />Your brand owns the category name when people use the brand generically.<br />(is that good?)<br />Premium product<br />Make it expensive<br />Find a subtle way to communicate exclusivity<br />
  8. 8. Law of credentials<br />Customers are suspicious and they tend to disbelieve your claims.<br />When you have the right credentials, the prospect is likely to believe you<br />Have a good track record and communicate it.<br />
  9. 9. Law of quality<br />Build a powerful ‘perception’ of quality in the customers’ mind<br />High price<br />Narrow focus<br />Use the word ‘quality’<br />Build as much quality as you can afford<br />Differentiate looks<br />
  10. 10. Law of the category<br />Leading brand should promote the category, not the brand<br />Use words like leader, pioneer, original, first<br />Rise of competitors stimulates consumer interest<br />The ‘rightful’ share of a leader is not more than 50%<br />
  11. 11. Law of the name<br />In the long run, a brand is nothing more than a name<br />Generic names are no good<br />The leader is not necessarily a high quality product but a high quality name<br />
  12. 12. Law of extensions<br />The easiest way to destroy a brand is to put the name on everything<br />If the market is moving, stay where you are and launch a second brand<br />If not, stay where you are and build your brand<br />
  13. 13. Law of fellowship<br />Not only should the dominant brand tolerate competitors, it should welcome them<br />Choice stimulates demand<br />Market share is based on the brand in the mind, not on merit of the product<br />
  14. 14. Law of the generic<br />One of the fastest way of failure is to give a brand a generic name<br />????<br />GE, IBM, 3M, GM<br />
  15. 15. Law of the company<br />Brands are brands. Companies are companies. There is a difference<br />Should the company name dominate or the brand name?<br />The brand should be the focus of attention.<br />If you have to use the company name, do it in a decidedly secondary way.<br />
  16. 16. Law of subbrands<br />What branding builds, subbranding can destroy.<br />Subbranding, masterbranding and megabranding are not customer driven concepts<br />
  17. 17. Law of siblings<br />There is time and space to launch a second brand<br />The key is to make each brand a unique individual with its own identity<br />
  18. 18. Law of siblings<br />Focus on common product area<br />Select a single attribute to segment<br />Set up rigid distinctions among brands<br />Create different, not similar brand names<br />Launch to create a new category, not to fight with competition<br />Keep control at the highest level<br />
  19. 19. Law of shape<br />Brand’s logotype should be designed to fit the eyes. <br />Horizontal<br />1:2.25<br />Legible<br />Advantages of using the symbol alone are slim and occur in certain situations.<br />
  20. 20. Law of colour<br />A brand should use a colour that is opposite of its major competitor’s.<br />Focus on the mood you want to create<br />Colour consistency is important<br />
  21. 21. Law of borders<br />There are no barriers to global branding<br />Keep the brand’s narrow focus<br />Be the first<br />Product needs to fit the perception of its country of origin<br />Changes must be made to accommodate local languages and cultures<br />
  22. 22. Law of consistency<br />Markets may change, but brands shouldn’t<br />Persist<br />
  23. 23. Law of change<br />Brands can be changed, but only infrequently and very carefully.<br />Brand is weak or nonexistent in the mind<br />Moving the brand down<br />Change takes place slowly to take advantage of a slow moving trend<br />
  24. 24. Law of morality<br />No brand will live forever<br />Euthanasia is often the best solution<br />
  25. 25. Law of singularity<br />The most important aspect of a brand is its single-mindedness<br />
  26. 26. Brand Asset Valuator<br />Differentiation<br />Relevance – Breadth of a brand’s appeal<br />Esteem <br />Knowledge<br />
  27. 27. Aaker’s Model<br />Brand loyalty<br />Brand awareness<br />Perceived quality<br />Brand associations<br />Other IP<br />
  28. 28. BRANDZ<br />Presence – Do I know about it?<br />Relevance – Does it offer me something?<br />Performance – Can it deliver?<br />Advantage – Is it better than others<br />Bonding – Nothing else beats it<br />
  29. 29. Intangible Asset Monitor<br />External Structure<br />Internal structure<br />Competence<br />Karl – Erik Sveiby<br />
  30. 30. External Measures<br />Market to book value<br />Tobin’s Q: replacement cost of assets<br />Valuation of free cash flows*<br />Calculated Intangibles Value<br /> ROA<br /> Value/Sales<br />
  31. 31. Brand Management at Unilever India<br />
  32. 32. UI has over 100 brands<br />Cautious in creating new brands<br />Locates positioning opportunities<br />Every brand has to be viable on its own<br />Constant brand rejuvenation<br />
  33. 33. Umbrella branding<br />Food: Brooke Bond, Lipton, Kissan, Dalda and Kwality Walls<br />Expanding Kissan even to basic food items<br />Brooke Bond and Lipton in beverages<br />
  34. 34. Power brands<br />Identified 30 power brands<br />Includes future stars like Axe <br />And niche leaders like Pears<br />Criteria<br />Current performance<br />Competitive differentiation<br />Future potential<br />
  35. 35. Other 80+ brands treated differently<br />Regional brands - Hamam<br />Unprofitable brands – Aim, Revel<br />Overlapping brands – Breeze and Jai<br />
  36. 36. Case of Savlon<br />Germicide segment of soap market was growing fast<br />Dettol was the leader<br />Lifebuoy was not expected to succeed<br />
  37. 37. Competitive Positioning<br />
  38. 38. Market leaders<br />Expand the market<br />New customers (new markets)<br />More usage<br />Expand market share<br />
  39. 39. Defend market share<br />Position defense<br />Flank defense<br />Preemptive<br />Counteroffensive<br />Mobile<br />Contraction<br />
  40. 40. Market challenger<br />Market leader<br />Other firms its size<br />Small firms<br />Frontal<br />Flanking<br />Encirclement<br />Bypass<br />Guerrilla<br />
  41. 41. Price discounts<br />Product improvements<br />Product proliferation<br />Distribution innovation<br />Promotion intensification<br />Cost reduction<br />
  42. 42. Market follower<br />Counterfeiter<br />Cloner<br />Imitator<br />Adapter<br />MARKET NICHER<br />