The document discusses various aspects of branding including: 1. It defines what a brand is in terms of the mental associations and perceptions that consumers have regarding a product or service. 2. Brands provide value to both customers and firms. For customers, brands reduce risk and enhance satisfaction. For firms, brands improve marketing effectiveness and allow higher prices. 3. While products come and go, brands endure over time. A brand is the memory of the products and is harder to change than the products themselves. 4. Leading brands are not always the products with the best quality, but are often those that have established a superior image and alternately innovate and capitalize on their brand image over

1. Warming up to brands 7th August 2007

2. Let’s identify the brands associated with these visuals and slogans

20. Slogans Just do it! Kuch meetha ho jaye Impossible is nothing Connecting people Lagey raho Express yourself Keep walking! There are some things money can’t buy. For everything else there is …..

21. Slogans It’s hot! The world’s local bank The Citi never sleeps The power of knowledge The best a man can get God’s own country The taste of India Do you have it in you? Think different

22. Brands….The beginning

23. Roots Uniformity is the mother of branding Identity is lost due to homogeneity as there is no differentiation Origin of the word ‘brand’ lies in the Norse word ‘brandr’ which means ‘to burn’ In early times, farmers used to identify their livestock with a burn mark or a symbol Distillers branded their casks

24. Roots The producers’ names identified the products - Smirnoff, Ford, Mercedes, Levi Strauss

25. Today…. Brands are an integral part of our life - products; services; people; places; football clubs; fictional characters; virtual worlds…. They are intangible assets that need to be exploited

26. Savour this Indian firms eye Jaguar, Land Rover - Tata - Mahindra & Mahindra World’s top 100 brands worth more than India’s total m-cap - $ 1.15 trillion - More than combined market value of over 4000 listed cos. in India

27. We work not for ourselves, not for the company, not even for our clients. We work for Brands Brand Stewardship ( Ogilvy)

28. To be most valued by those who most value brands Brand Stewardship ( Ogilvy)

29. Brand A Brand is a product which has earned a place in the consumer’s life through perception, experience, beliefs, feelings ....... until a relationship is built It is the sum of how consumers feel about a product Brand Stewardship (Ogilvy)

30. Brand “ A brand is nothing more or less than the sum of all the mental connections people have around the product. Memories from childhood, something your mum said ... and in the case of newer brands, memories from ads. The trick is to arrange things so that the mental connections around the brand are enhancing” Michael Perry Former Chairman & CEO, Unilever

31. Brand “ Consumers build brands the way birds build nests... from scraps and straws they chance upon” Jeremy Bullmore Former Chairman JWT

32. The ‘classic’ definition Keller: “A brand is a set of mental associations, held by the consumer, which add to the perceived value of a product or service”

33. Mental associations Unique (Exclusivity) Strong (Saliency) Positive (Desirable)

34. Mental associations What is the brand territory (perceived competence; typical products or services; specific know-how)? - Gillette - Apple - Virgin - Nokia - Dettol - Karim’s?

35. Mental associations What is its level of quality (low; medium; premium; luxury)? What are its qualities? What is its most discriminating quality or benefit (also called perceived positioning)? - Burnol is for burns - Marlboro is not just a cigarette; it’s about fierce independence; about being macho - Hummer: Like nothing else

36. Mental associations What typical buyer does the brand evoke? - Harley Davidson - Goa - Rolex What is the brand personality and brand imagery?

37. Beyond mental associations…. The power of a name is also due to the specific nature of the emotional relationships it develops Patents and rights are of course a key asset. They provide competitive advantage over a period of time

38. Brand anatomy

39. Brand Gestalt Physical Product Attributes Quality Uses Brand Personality Logo Visual Appearance Country of Origin User Imagery Tangible Benefits Emotional Benefits Brand Customer Relationship Source: Soni Simpson, Stuart Graduate School of Business

40. A synthesis of all elements, physical, aesthetic, rational AND emotional End result = appropriate differentiated relevant Brand

41. The Coca-Cola Brand Is… 1800s Heritage The Real Thing Americana Battles with Pepsi Sold Everywhere Logo Brand

42. The McDonald’s Brand Is… The Big Mac Happy Meals French Fries Red and White Restaurants Fun For Children Ronald McDonald Golden Arches Value for Money Brand

43. How do brands provide value?

44. Providing Value to Customers Short cut for interpreting, processing and storing information Gives confidence in the purchasing decision - reduces risk Enhances use satisfaction

45. Providing Value to the Firm Enhance the effectiveness and efficiency of marketing programs - one of the rewards for risk- taking Decrease brand switching Higher prices and margins (Brand-involved consumers bargain less) Trade leverage Competitive advantage

46. The Product and the brand

47. Product Kotler: “A product is anything that can be offered to a market to satisfy a want or need”

48. What is a Product? Kotler’s Five levels to a product: Potential Product The Fundamental Need or Want that consumers satisfy by consuming the product or service Basic Version of the product containing only those elements absolutely necessary to function. No distinguishing features. Attributes and Characteristics that buyers normally expect and agree to when they purchase a product Additional product attributes, benefits, or related services that distinguish the product from competitors Potential Product All the augmentations and transformations that a product might ultimately undergo in the future Generic Product CORE BENEFIT Expected Product Augmented Product Generic Product Expected Product Augmented Product

49. Product and brand Product = Commodity A product is a produced item always possessing these characteristics: Tangibility Attributes and Features Brand = “Mind Set” The sum of all communications and experiences received by the consumer and customer resulting in a distinctive image in their “mind set” based on perceived emotional and functional benefits Source: Soni Simpson

50. Product and brand Products come to life, live and disappear, but brands endure e.g. Zen, Honda City, Bajaj A brand is the memory of the products A brand is less elastic than its product. Once created, like fast-setting concrete it is hard to change

51. Are leading brands the best products? Not necessary To be the ‘best’ means to compete in the premium tier which is rarely a large segment The brand with the best quality/price ratio is market leader

52. Are leading brands the best products? Most brands are born out of a product or service innovation (ipod; Sony walkman and discman) Later, as the product name evolves into a brand, customers’ reason for purchase may still be the brand’s “superior performance” image

53. Are leading brands the best products? It seems that brands alternate in their focus. They capitalise on their image, then innovate to recreate or nurture the belief of product superiority, then recapitalise on their image, and so on e.g. Gillette, Sony

54. Branding

55. Branding Transforming a commodity like product into customer satisfying value added propositions is the essence of branding

56. Brand Imposing One’s Will On The Consumer Branding OLD SCHOOL THINKING DIPLOMA

57. “ Pretty much everything today can be seen in relation to a love-respect axis. You can plot any relationship – with a person, with a brand – by whether it’s based on love or based on respect. It used to be that a high respect rating would win. But these days, a high love rating wins. If I don’t love what you’re offering me, I’m not even interested.” Kevin Roberts, Saatchi and Saatchi Branding

58. “ Pretty much everything today can be seen in relation to a love-respect axis. You can plot any relationship – with a person, with a brand – by whether it’s based on love or based on respect . It used to be that a high respect rating would win. But these days, a high love rating wins. If I don’t love what you’re offering me, I’m not even interested.” Kevin Roberts, Saatchi and Saatchi Branding

59. TradeMark Branding Love * Mark Trust-Mark

60. Those Brands which are particularly well adapted to the environment and which thus, survive and flourish. POWER BRANDS Attached to Consumers Deep respect for the way products fit into Consumers lives = “Core” of Success

61. 4 components of branding Building the brand: Brand Identity is the first step; Brand positioning etc. Leveraging the brand: Line extensions; Brand extensions; Co-branding Identifying and measuring brand equity: consumer relationships; brand financial value etc. Protecting: Dilution; Legal aspects

62. Suggested reading Visit brandchannel.com and read the Interbrand 2007 report on global brands Case study “Branding for President” “The New Strategic Brand Management” by J.N.Kapferer. Chapter 1 & 2

63. Suggested reading “Brand Management: Text & Cases” by Harsh Verma. Chapter 1 Strategic Brand Management by Kevin Lane Keller