introduction to the concept of branding

1. Introduction to Brand
Prepared by:
Dr. Shamini T V

2. What is a brand?
• A name, a term, sign, symbol, or design, or a
combination of them, intended to identify goods or
services of one seller or group of sellers and to
differentiate them from those of competitors

4. A brand is a complex symbol that can convey up to six levels of
meaning
1. Attributes
2. Benefits - Functional & Emotional
3. Values
4. Culture – represent certain culture
5. Personality
6. User

5. Brand Pyramid
Dove Soap
More attractive
Soft Skin
Cleansing/ moisturising
cream
Beliefs
and
Values
Brand’s Benefits
Brand Attributes

6. • A brand is essentially a marketer’s promise to deliver a
specific set of features, benefits and srevices consistantly
to buyers
• The marketer must think that he is offering a contract to
the customers regarding how the brand will perform
• Brand bonding will occours when customers experience
the company as delivering on its benefit promise

7. • Brands are built not by advertising but by the brand
experience
• Branding is endowing products and services with the
power of brand
• Brand knowledge consists of all the thoughts, feelings
images, experiences, beliefs and so on that become
associated with the brand

8. Types of Brands
• Individual Brands
The most common type of brand is a tangible, individual product,
such as a car or drink. This can be very specific, such as the
Kleenex brand of tissues, or it can encompass a wide range of
products.
Product brands can also be associated with a range of offerings,
such as the Mercedes S-class cars or all varieties of Colgate
toothpaste.

9. •Service Brands
A service brand develops as companies move from manufacturing
products to delivering complete solutions and intangible
services. Service brands are characterized by the need to
maintain a consistently high level of service delivery.
This category includes the following:
• Classic service brands (such as airlines, hotels, car rentals, and banks)
• Pure service providers (such as member associations)
• Professional service brands (such as advisers of all kinds—accountancy,
management consultancy)
• Agents (such as travel agents and estate agents)
• Retail brands (such as supermarkets, fashion stores, and restaurant

10. • Organization Brands
Organization brands are companies and other entities that deliver
products and services. Mercedes and the U.S. Senate each
possess strong organization brands, and each has associated
qualities that make up their brand. Organizations can also be
linked closely with the brand of an individual.
For example, the U.S. Democratic party is closely linked with Bill
and Hillary Clinton and Barack Obama.

11. Personal Brands
A person can be considered a brand. It can be comprised
of one individual, as in the cases of Oprah Winfrey or
Mick Jagger. Or it may be composed of a few individuals,
where the branding is associated with different
personalities.
With the advent of the Internet and social media, the
phenomenon of personal branding offers tools and techniques for
virtually anyone to create a brand around themselves..

12. •Group Brands
Group branding happens when there is a small group of
branded entities that have overlapping, interconnected
brand equity. For example, the OWN group brand of
the Oprah Winfrey Network and the brand of its
known members (Oprah and her team) are strongly
connected.

13. •Event Brands
• Events can become brands when they strive to deliver
a consistent experience that attracts consumer loyalty.
Examples include conferences the TED series; music
festivals like Coachella or SXSW;

14. Geographic Place Brands
•Many places or areas of the world seek to brand
themselves to build awareness of the essential qualities
they offer. Branded places can range from countries
and states to cities, streets, and even buildings.
Those who govern or represent these geographies work hard to
develop the brand. Geographic branding is used frequently to
attract commerce and economic investment, tourism, new
residents, and so on.

15. •Private-Label Brands
Private-label brands, also called own brands, or store
brands, exist among retailers that possess a
particularly strong identity (such as Save-A-Lot). Private
labels may denote superior, “select” quality, or lower
cost for a quality product.

16. Media Brands
Media brands include newspapers,
magazines, and television channels such as
CNN.

17. •E-Brands
E-brands exist only in the virtual world.
Many e-brands, such as Amazon.com,
have a central focus on providing an online
front end for delivering physical products
or services.

18. Strategic Brand Management
• Strategic brand management involves the design and
implementation of marketing programs and activities
to build, measure, and manage brand equity.
• The strategic brand management process is defined as
involving four main steps:
1) Identifying and establishing brand positioning and values
2) Planning and implementing brand marketing programs
3) Measuring and interpreting brand performance
4) Growing and sustaining brand equity

19. Strategic Brand Management Process
Mental maps
Competitive frame of reference
Points-of-parity and points-of-difference
Core brand values
Brand mantra
Mixing and matching of brand elements
Integrating brand marketing activities
Leveraging of secondary associations
Brand Value Chain
Brand audits
Brand tracking
Brand equity management system
Brand-product matrix
Brand portfolios and hierarchies
Brand expansion strategies
Brand reinforcement and revitalization
KEY CONCEPTS
STEPS
Grow and Sustain
Brand Equity
Identify and Establish
Brand Positioning and Values
Plan and Implement
Brand Marketing Programs
Measure and Interpret
Brand Performance

20. Brand strategy decisions
Brand Positioning
Attributes
Benefits
Beliefs and Values
Brand name
Selection
Selection
Protection
Brand sponsorship
Manufacturer’s Brand
Private Brand
Licencing
Co Branding
Brand development
Line extensions
Brand extensions
Multibrands
New Brands
Brand/
No Brand
Repositioning
No repositioning

21. Branding Strategy Decisions
• Leveraging the power of the brand name to cover the market more
effectively
• Brand associations
• Why do we do it?
• Phenomenally expensive to create and promote a new brand name
• Too many brands out there
• Increase productivity of current marketing programs

22. Umbrella branding
• When you have many sub-brands, each linked to a common brand,
then the common brand is known as the umbrella brand
• E.g. Ford Taurus, Ford Explorer, Ford Focus, Ford Ranger, Ford Five
Hundred, Ford Freestyle, Ford Expedition, Ford Thunderbird, etc.

23. Flanker Brand
• Different brand name – same product
• Purpose: Pre-empt competition, cover the market more completely (protect your
flanks)
• Problem: some cannibalization is expected.
• E.g. Thums Up and Coca Cola in India
• General Mills – Robin Hood and Gold Medal brand flour
• Tide and Cheer from P&G

24. Brand Extension
• Same brand name, new product line e.g. Reebok shoes and Reebok
water. Nike shoes and Nike casuals. Chevy cars and Chevy men’s
cologne. Hooters restaurants and Hooters airline
• The concept of congruence determines the success of a brand
extension strategy. E.g. Johnson’s baby powder and Johnson’s baby
oil – high congruence. But imagine Lysol toilet bowl cleaner and Lysol
toothpaste!!!

25. Line Extension
• Same brand name, different product in the same product line.
• E.g. Ivory soap and Ivory shampoo; IBM PCs and IBM laptops
• Line extensions are safer strategies than brand extensions since congruence is
always higher.

26. Ingredient branding
• Your brand is sold in the B2B market as a component of another product. You
want the brand to get consumer recognition and equity. What do you do?
• Tell consumers about your brand’s presence in the final product
• Ingredient branding: Branding an ingredient of the main brand, which is often
manufactured by a different company.
• E.g. Intel Inside is an ingredient brand on IBM, Dell, Compaq, etc. computers;

27. Co-branding
• You have a strong brand but want to penetrate the market even
better. What do you do?
• Complementary Branding OR Co-branding – when two or more
mutually reinforcing brands get together to jointly promote
themselves (one is not an ingredient of another).
• E.g. co-branded credit cards like Chase MasterCard,

28. Brand Equity
• Brands vary in the amount of power and value they have in the market place.
• Kotler Defines Brand equity as the positive differential effect that knowing the
brand name has on customer response to the product or service.
• Brand equity results in customers showing a preference for one product over
another when they are identical.

29. Brand Equity
Definition by DAVID AAKER
• Brand Equity is defined as the unique set of brand assets and liabilities that
is linked to a brand.
• It is the net result of all the investment and effort that a marketer put into
building a brand.

30. Brand Equity
• It is the the customer’s subjective and intangible
assessment of the brand, above and beyond its
objectively perceived value
Brand Awareness
Brand Acceptability
Brand Preference
Brand Loyalty

31. Perceived Quality
• Percevied quality is how the customers evaluate different brands on
quality
• If the brand is perceived to be of premium quality, the customer will
be willing to pay a premium for it.
• High perceived means higher return on investment.

32. Brand awareness
• Brand awareness provides the brand with a sense of
familiarity and people like the familiar. Familiarity can drive
the buying decisions
• Brand awareness can be a signal of presence, commitment
and substance
• The salience of a brand will determine if it is recalled at a
key time in the purchasing process.
• Brand awareness is an asset that can be remarkably durable
and thus sustainable.

33. Brand Identity
• Brand identity is the associations attached to a firm and
its brands
• A brand association is anything that is directly or
indirectly linked in memory to tha brand.
• Consumers associate abrand with certain tangible and
intangible attributes.
• Each company has to carve a brand identity and develop
it further to build strong brands.

34. Brand Identity
• Brands gain strategic positions by association with:
• User or applications (Nestle Milo with sports)
• Product class (Maggi as instant Noodles)
• Product user (Lifebuoy for the working class)
• Life style and feelings (The Pepsi generation)
• Personality (surf for quality conscious,
upmarket ladies)
• Symbol (Penguin of Kelvinator)

35. Brand Loyalty
• A prime enduring asset for some business is the loyalty
of the installed customer base.
Brand loyalty can develop in many ways:-
• The customer may try a brand and on being satisfied
with the used experience, repeat the purchase.
• Or He may compare the attributes of different brands
available in terms of their ability to render the desired
service, choose one and repeatedly purchase it.

36. Brand Loyalty
• Three levels of brand loyalty:
1) Brand loyal
2) Brand insisters
3) Brand prefers

37. Brand Loyalty -Advantages
• Reduces marketing costs
• Creates substantial entry barriers
• Provides for trade leverage
• Time to respond competitive threats
• Large satisfied customer base boosts the image and acceptance.

38. Attributes which results in Brand Equity
• Usership of the Brand
• Consumer loyalty towards the Brand
• Percieved quality of the Brand
• Positive symbols of Brand
• Favourable associations around the Brand etc.
By continuously monitoring these attributes the marketer
convert what really a product into a Brand

39. Brand Equity - Advantages
• Allows the company to charge a price premium compared to
competitors with less brand equity
• Strong brand names simplify the decision making process
for low cost and non essential products
• Brand name can give comfort to buyers unsure of their
decision by reducing their perceived risk
• Maintain higher awareness of the products

40. Brand Equity - Advantages
• Use as leverage when introducing new products
• High brand equity makes sure the products are included in
most consumers consideration set.
• It can lead to greater loyalty from customers
• It offers a strong defence against new products and new
competitiors

41. Brand Equity
In simple terms Brand Equity is the value or worth of the Brand

42. Brand Equity, A financial concept
Brand is a tradeable but intangible asset
Brand’s Market share, Profitability, Future potential – are
the crusial considerations for fixing the price of a brand.
Coca-Cola paid Rs. 200 crore to buy out Parle Brands –
Thumps Up, Gold Spot, Citra, Limca.
Godrej Paid Rs 80 crore to buy out Transelectra Brands –
Good Knight and Hit
SmithKline sold its Crocin brand for Rs.45/-
crore

43. A brand’s Equity can be Quantified and Measured
Methodologies
• Brand Earning Multiple approach
Involves - determination of brand strength score, Assesment
of brand value /Brand earnings Multiple and Charging the
adequate return on capital to screen out the return on non
brand assets.
This approach was Propounded by INTER-
BRAND, the Research Agency

44. A brand’s Equity can be Quantified and Measured
Methodologies
• Brand equity Index Model
Brand equity is calculated by multiplying the relative price of
the product by market share in units. The product is then
multiplied by a measure of loyalty or durability representing
the staying power of the brand.

45. A brand’s Equity can be Quantified and Measured
Methodologies
• Royalty-based approach
Involves – the hypothetical estimation of the
amount of Royalty income by the firm, that could
be generated, if the subject brand was leased by
an independent third party owner to the bussiness
currently using brand.

46. A brand’s Equity can be Quantified and Measured
Methodologies
• Profit Split Approach
Involves – the firm assumes that an independent
third party owns the brand and licences it for an
associated profit. The firm has to estimate the
amount of profit that could be split between the
brand and other intangible assets.

47. A brand’s Equity can be Quantified and Measured
Methodologies
• Incremental cash flow from branding
Brand equity is estimated by determining the cash flows of
a brand and subtracting the cash flows from an unbranded
product.

48. New Branding Challenges
Brands are important as ever
• Consumer need for simplification
• Consumer need for risk reduction
Brand management is as difficult as ever
• Savvy consumers
• Increased competition
• Decreased effectiveness of traditional marketing tools and
emergence of new marketing tools
• Complex brand and product portfolios

49. The Customer/Brand Challenge
In this difficult environment, marketers must have a
keen understanding of:
• customers
• brands
• the relationship between the two

50. The Concept of Brand Equity
The brand equity concept stresses the importance of the brand in
marketing strategies.
Brand equity is defined in terms of the marketing effects
uniquely attributable to the brand.
Brand equity relates to the fact that different outcomes result in the
marketing of a product or service because of its brand name, as
compared to if the same product or service did not have that name.

51. The Concept of
Customer-Based Brand Equity
• Customer-based brand equity
• Differential effect
• Customer brand knowledge
• Customer response to brand marketing

52. Determinants of
Customer-Based Brand Equity
• Customer is aware of and familiar with the brand
• Customer holds some strong, favorable, and unique brand
associations in memory

53. Building
Customer-Based Brand Equity
• Brand knowledge structures depend on . . .
• The initial choices for the brand elements
• The supporting marketing program and the manner by
which the brand is integrated into it
• Other associations indirectly transferred to the brand by
linking it to some other entities

54. Benefits of
Customer-Based Brand Equity
• Enjoy greater brand loyalty, usage, and affinity
• Command larger price premiums
• Receive greater trade cooperation & support
• Increase marketing communication effectiveness
• Yield licensing opportunities
• Support brand extensions.

55. Customer-Based Brand Equity
as a “Bridge”
• Customer-based brand equity represents the
“added value” endowed to a product as a result
of past investments in the marketing of a brand.
• Customer-based brand equity provides direction
and focus to future marketing activities

56. The Key to Branding
• For branding strategies to be successful, consumers
must be convinced that there are meaningful
differences among brands in the product or service
category.
• Consumer must not think that all brands in the
category are the same.
• PERCEPTION = VALUE

57. Motivation for
Customer-Based Brand Equity Model
• Marketers know strong brands are important but
aren’t always sure how to build one.
• CBBE model was designed to be …
• comprehensive
• cohesive
• well-grounded
• up-to-date
• actionable