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1
19-05-2016
A Seminar by
Mohan Kumar G.
2nd Sem., M.Tech. (M.E.M.),
S.J.C.E., Mysore.
Plan of Presentation
Introduction to Branding
What ‘a brand is not’?
What ‘a brand is’
The Power of Branding
Why Branding is so Important?
Brand Building Strategies
References
2
Introduction to Brand
A brand is a name, term, sign, symbol, or design, or a
combination of these, that identifies the maker or seller of a product or
service.
History of Branding:
The word "brand" derives from the word "brandr" meaning "to
burn" - recalling the practice of producers burning their trade mark (or
brand) onto their products.
The oldest generic brand, in continuous use in India since the
Vedic period is the herbal paste known as Chyawanprash, consumed
for its purported health benefits and attributed to a revered rishi (or
seer) named Chyawan.
3
Around 1900, James Walter Thompson published a house
ad explaining trademark advertising. This was an early
commercial explanation of what we now know as branding.
Companies soon adopted slogans, mascots and jingles that
began to appear on radio and early television.
By the 1940s, manufacturers began to recognize the way in
which consumers were developing relationships with their
brands in a social/ psychological sense.
Manufacturers quickly learned to build their brands‘
identity and personality such as youthfulness, fun or luxury. This
began the practice we now know as "branding" today, where the
consumers buy "the brand" instead of the product.
4
What is a Brand?
Consumers view a brand as an important part of a
product, and branding can add value to a consumer’s
purchase. Customers attach meanings to brands and
develop brand relationships. As a result, brands have
meaning well beyond a product’s physical attributes.
Branding is an effort to give a unique identity to
the company’s products and create emotional
associations with consumers.
5
6
Consumer Buying Behaviour
7
8
What ‘a Brand is Not’
Logo
Advertising
Brand
Sponsorships
Public Relations
Marketing
Naming
Product
Brand is rational
and emotional
“Brand can drive future sales
growth, pricing power and profit
margins - strong brand translates
into solid future EPS growth
“I’ve always
just been
a Nike person”
“Brand is an intangible asset, but it
does have value and can be
measured even though it’s not on
the balance sheet”
“I would rather feel bad
in Maine then good
anywhere else in the
world”
“Wherever you go, there
are three icons that
everyone knows: Jesus
Christ, Pele and Coca-
Cola”
“Companies that have a brand, and
are able to monetize that brand,
are tremendously profitable”
RATIONAL EMOTIONAL
13
Blind v/s Brand test - Pepsi v/s Coca-Cola
Strong brands generate greater
demand
Share
Price
 share
 $
Unbranded
curve
Branded
curve
In 2011,
35% of U.S.
consumers polled
said they would
pre-order the
iPhone 5…
sight and price
unseen
BRAND
EQUITY
MODEL OUTCOME
Funds at any stage, are chasing demand so they can
execute their strategy.
Brand is the conduit between trust and demand for funds
at any stage
Growing
Proven
Established
Size (AUM) < $500M
Strategic priority:
Sourcing investors
FUND STAGE
Size (AUM) $500M - $1B
Strategic priority:
Closing funds to
new investors
DEMAND
TRUST
Size (AUM) > $1B
Strategic priority:
Seeding additional funds
Why Branding is so Important?
Vs
What a good brand does
Strengthens employees loyalty
Attracts clients/customers
Keeps current relationships strong
Builds confidence
Builds feelings of security and trust
Creates a memorable, positive experience
Creates better choices for the customer
Being distinctive in the market
Improved perceptions of product
Greater loyalty
Less vulnerability to competitive marketing actions
Less vulnerability to crises
Larger margins
More inelastic
Greater trade cooperation
Increase marketing communications effectiveness
Possible licensing opportunities
Advantages of Strong Brand
The Role of Brands
 Identify the maker
 Simplify product handling
 Organize accounting
 Signify quality
 Create barriers to entry
 Serve as a competitive advantage
 Secure price premium
Why Brands are Costly?
Because nowadays products & services have become
alike, brands came to distinguish them, HOW?
Branded lifestyle is
extended to brand
categories, saves
cost on company
Creates relationship
between brand &
consumer that will
lead to customer
loyalty.
Add emotion and trust
Creates lifestyles that
inspire the
consumer and
affects his lifestyle
The combination of emotions,
relationships, lifestyles and
values allows brand owners to
charge a price premium for
their products and services,
which otherwise are barely
distinguishable from generics
Strategies of Building Great Brands
“The degree of consumer attachment
to a brand.”
Recognition
Preference
Insistence
Awareness of name,
benefit and package
Is useful, consumer will
buy if available…evoked
set
Will search for; must have
Branding Objective
Creates in the mind of the
customers’ expectation - the
perception - that there’s no other
product or service quite like this
branded one!
Brand equity is the added value
endowed on products and services, which
may be reflected in the way consumers,
think, feel and act with respect to the brand.
A brand promise is the marketer’s vision
of what the brand must be and do for
consumers
Building Brand Equity
Company
Product A
Product B
Product Packaging
Websites
Advertisements
A brand is a promise. A promise to achieve
certain results, deliver a certain experience, or
act in a certain way. A promise that is conveyed
by everything people see, hear, touch, taste or
smell about your business.
logo
Integrity of Brand
Guess Who Am I ?
What does the following
symbols mean to you?
1) Chicken, An old man, with white hair and
beard, name consists of 3 letters?
2) Have a break, have a ....
 Brand Recognition / Equity - awareness, loyalty, quality,
emotion
 Brand Preference / Loyalty - the degree to which
customers are committed to further purchases.
Ex:- I will always buy Reebok (Brand Insistence)
 Brand Awareness -your product is the first that comes to
mind in a certain product category.
Ex:- Jeans-Levi’s, Walkman - SONY
 Brand Association - the link to favourable images,
celebrities, geographic regions.
Ex:- Coorg Coffee, Mysore Silk
Brands
References
1. www.google.com
2. https://en.wikipedia.org/wiki/Brand
3. http://interbrand.com/best-brands/best-global-
brands/2015/ranking/
35
Thank You
36

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The Power of Branding - Seminar by Mohan Kumar G

  • 1. 1 19-05-2016 A Seminar by Mohan Kumar G. 2nd Sem., M.Tech. (M.E.M.), S.J.C.E., Mysore.
  • 2. Plan of Presentation Introduction to Branding What ‘a brand is not’? What ‘a brand is’ The Power of Branding Why Branding is so Important? Brand Building Strategies References 2
  • 3. Introduction to Brand A brand is a name, term, sign, symbol, or design, or a combination of these, that identifies the maker or seller of a product or service. History of Branding: The word "brand" derives from the word "brandr" meaning "to burn" - recalling the practice of producers burning their trade mark (or brand) onto their products. The oldest generic brand, in continuous use in India since the Vedic period is the herbal paste known as Chyawanprash, consumed for its purported health benefits and attributed to a revered rishi (or seer) named Chyawan. 3
  • 4. Around 1900, James Walter Thompson published a house ad explaining trademark advertising. This was an early commercial explanation of what we now know as branding. Companies soon adopted slogans, mascots and jingles that began to appear on radio and early television. By the 1940s, manufacturers began to recognize the way in which consumers were developing relationships with their brands in a social/ psychological sense. Manufacturers quickly learned to build their brands‘ identity and personality such as youthfulness, fun or luxury. This began the practice we now know as "branding" today, where the consumers buy "the brand" instead of the product. 4
  • 5. What is a Brand? Consumers view a brand as an important part of a product, and branding can add value to a consumer’s purchase. Customers attach meanings to brands and develop brand relationships. As a result, brands have meaning well beyond a product’s physical attributes. Branding is an effort to give a unique identity to the company’s products and create emotional associations with consumers. 5
  • 6. 6
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  • 9. What ‘a Brand is Not’ Logo Advertising Brand Sponsorships Public Relations Marketing Naming Product
  • 10. Brand is rational and emotional “Brand can drive future sales growth, pricing power and profit margins - strong brand translates into solid future EPS growth “I’ve always just been a Nike person” “Brand is an intangible asset, but it does have value and can be measured even though it’s not on the balance sheet” “I would rather feel bad in Maine then good anywhere else in the world” “Wherever you go, there are three icons that everyone knows: Jesus Christ, Pele and Coca- Cola” “Companies that have a brand, and are able to monetize that brand, are tremendously profitable” RATIONAL EMOTIONAL
  • 11.
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  • 13. 13 Blind v/s Brand test - Pepsi v/s Coca-Cola
  • 14. Strong brands generate greater demand Share Price  share  $ Unbranded curve Branded curve In 2011, 35% of U.S. consumers polled said they would pre-order the iPhone 5… sight and price unseen BRAND EQUITY MODEL OUTCOME
  • 15. Funds at any stage, are chasing demand so they can execute their strategy. Brand is the conduit between trust and demand for funds at any stage Growing Proven Established Size (AUM) < $500M Strategic priority: Sourcing investors FUND STAGE Size (AUM) $500M - $1B Strategic priority: Closing funds to new investors DEMAND TRUST Size (AUM) > $1B Strategic priority: Seeding additional funds
  • 16.
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  • 18. Why Branding is so Important? Vs
  • 19.
  • 20.
  • 21.
  • 22. What a good brand does Strengthens employees loyalty Attracts clients/customers Keeps current relationships strong Builds confidence Builds feelings of security and trust Creates a memorable, positive experience Creates better choices for the customer Being distinctive in the market
  • 23. Improved perceptions of product Greater loyalty Less vulnerability to competitive marketing actions Less vulnerability to crises Larger margins More inelastic Greater trade cooperation Increase marketing communications effectiveness Possible licensing opportunities Advantages of Strong Brand
  • 24. The Role of Brands  Identify the maker  Simplify product handling  Organize accounting  Signify quality  Create barriers to entry  Serve as a competitive advantage  Secure price premium
  • 25. Why Brands are Costly? Because nowadays products & services have become alike, brands came to distinguish them, HOW? Branded lifestyle is extended to brand categories, saves cost on company Creates relationship between brand & consumer that will lead to customer loyalty. Add emotion and trust Creates lifestyles that inspire the consumer and affects his lifestyle The combination of emotions, relationships, lifestyles and values allows brand owners to charge a price premium for their products and services, which otherwise are barely distinguishable from generics
  • 26. Strategies of Building Great Brands “The degree of consumer attachment to a brand.” Recognition Preference Insistence Awareness of name, benefit and package Is useful, consumer will buy if available…evoked set Will search for; must have
  • 27. Branding Objective Creates in the mind of the customers’ expectation - the perception - that there’s no other product or service quite like this branded one!
  • 28. Brand equity is the added value endowed on products and services, which may be reflected in the way consumers, think, feel and act with respect to the brand. A brand promise is the marketer’s vision of what the brand must be and do for consumers Building Brand Equity
  • 29. Company Product A Product B Product Packaging Websites Advertisements A brand is a promise. A promise to achieve certain results, deliver a certain experience, or act in a certain way. A promise that is conveyed by everything people see, hear, touch, taste or smell about your business. logo Integrity of Brand
  • 30.
  • 31. Guess Who Am I ? What does the following symbols mean to you? 1) Chicken, An old man, with white hair and beard, name consists of 3 letters? 2) Have a break, have a ....
  • 32.  Brand Recognition / Equity - awareness, loyalty, quality, emotion  Brand Preference / Loyalty - the degree to which customers are committed to further purchases. Ex:- I will always buy Reebok (Brand Insistence)  Brand Awareness -your product is the first that comes to mind in a certain product category. Ex:- Jeans-Levi’s, Walkman - SONY  Brand Association - the link to favourable images, celebrities, geographic regions. Ex:- Coorg Coffee, Mysore Silk
  • 34.
  • 35. References 1. www.google.com 2. https://en.wikipedia.org/wiki/Brand 3. http://interbrand.com/best-brands/best-global- brands/2015/ranking/ 35