Brand Building

What is Brand building?

Involves all the activities that are
necessary to nurture a brand into a
healthy cash flow stream for the
company after launch
Advertising does a lot to help build
brands
Every ad contributes to make the brand what
it is in the minds of the consumer David Ogilvy

A companys brand is the primary source of
its competitive advantage and is a very
valuable strategic asset David Aaker
Brand Equity
When a commodity becomes a brand, it is
said to have equity. It starts with a name
and can go up or down depending on the
marketing activity that is done by the
marketer. A name becomes a brand when
consumers associate it with a set of tangible
and intangible benefits that they obtain from
the product or service.
How to measure equity?
The premium a brand can command in the
market
The difference between the intrinsic and
perceived value of the product
Building Brand Equity
Distinguish product from others in the
market Value proposition
Align what it says about the brand in
advertising with what it actually delivers
Creating the brand
Power Brands
Generates enormous profits
Expands future strategic opportunities
What do power brands have that
others dont?
A distinctive product
Delivering brand promise
Personality and presence
Personality
Emotional bond with the customer
Generates relationships measurably stronger
than ordinary brands
Presence
Seem to be present everywhere, enforcing
distinctiveness
National/international scale
Successful brand extensions
Multiple concept and channels
Brand managers of market-savvy
companies need
Superior insight into customer needs
Ability to devise product/services that
powerfully meet those needs
Agility to redefine its offering as those
needs change
Creativity to produce exciting and
compelling advertising

Tangibles of brand equity
Shape
Colour
Size
Models
Price
Features
Benefits
Grades


Intangibles of brand equity
Company name
Brand name
Slogan and its
underlying
associations
Perceived quality
Brand awareness
Customer base
Trademarks and
patents
Channel relationships
Customer loyalty
Customer confidence
Competitive advantage
Value Proposition
Broad positioning
Specific positioning
Value positioning
Creating the brand
Choosing brand name
Developing rich associations and promises
Manage customer brand contacts to meet
and exceed customer expectations
Porters strategic choices
Product differentiator
Low cost leader
Nicher
Positioning guards
Should not be overpositioned
Should not be underpositioned
Should not be ambiguous
Should not promise irrelevant benefits
Promise should be credible
Choosing a brand name
What does it mean?
What performance/ expectations/
associations does it evoke?
What degree of preference does it create?
Brand names should denote
Product benefits
Product quality
Be easy to pronounce/remember/recognise
Be distinctive
Not have poor meanings in other countries
or languages
Brand Associations
owned word
Slogans
Colours
Symbols and logos
Brand Ambassadors
These are used to create the Brand
personality, just like a human being.
Therefore in some way the values and
personality of the ambassador rubs off into
the brand. Therfore the brand and choice of
the ambassador must fit.
Brand Status
Step up advertising Cash cow. Need to
sustain brand
building activities
Product should be
phased out
Troubled brand.
Product upgradation
required
Esteem
Familiarity
Brand Vitality
Differentiation in consumers mind
Differentiation relevant to consumers need
Brand Pitfalls
Brand experience must match brand image
Calls for managing every brand contact