Overview of Advertising

UNIT 3 : STRATEGIC PLANNING AND

BRAND MANAGEMENT1
Structure
3.0 Introduction
3.1 Learning Outcomes
3.2 Introduction to Brand
3.2.1 Understanding Brand
3.2.2 Brand Equity
3.2.3 Brand Positioning
3.2.4 Brand Diversity
3.3 How to Create and Sustain a Brand"
3.3.1 Evolution of Brand
3.3.2 Brand
Brrand Sustenance
Susttenance
3.3.3
.3.33 Making
3. Maakingg Brand
r nd Identity
Bra Ide ityy for
d nttit fo Market
M rk
Ma ket
3.
.3.4 Growing
3.3.4 Grrowin
ng Brand
Bran
and Portfolio
Portfo
Po fo
olio
3.44 Brand
Br Management
rand Ma
anageemeent
3.4.1
.4.1 Theories
3. heoriees and
Th and Models
Models of Branding
Branndin
ng
3.4.2 Ma
3. Managing
M Brand
randd aand
naging Bra Challenges
ndd its Challenges
3.4.3 Li
3. Line
ine Extensionn aand Brand
nd B rand Extension
3.4.4 Case
3. Caase Studies
Studiies
3.5
3. Strategic
S Planning
trateegic Pl
P anningg iin Branding
n Br
B an
nding
ng
3.5.1
.1 Understanding
3.5. Unnderstanding the Market
3.5.2
3.5.
3. 5 2 Designing
Deesigningg Market
rket Driven
Maarket riveen Branding
Dri Bran
Br ngg Strategy
andding
an Str
t ateg
egyy
eg
3.5.3 Brand
Brr Architecture
Ar
rch
chit
itec
itectu
ec ure
3.5.4 Case
Ca Studies
33.6
6 Digital Branding
3.7 Let Us Sum Up
3.8 Check Your Progress: Possible Answers
3.9 Further Readings
3.10 Glossary

3.0 INTRODUCTION
In today’s cluttering crowd of products from various companies, it is
branding of that product or company that segregates it from others and
creates its value in the minds of the consumers. All types of organisations
and companies want to acquire a share of their consumers’ mind by applying
the principles of branding. However, such branding is not possible in a
single day. It requires strategic planning and sustained efforts to execute
Unit 3 Writer : Dr. Archana Kumari
68
that planning over a period of time to create an impact so strong and so Strategic Planning and Brand
credible that it can be called a brand. Management

Brand Management is an interdisciplinary ¿eld, where it belongs to both the

domain of Advertising and Public Relations and Marketing Management,
so it should be studied with this interdisciplinary approach. Today it has
become an essential part of marketing and managers rely on proper planning
for brand management because it has long lasting impact and it can not only
create new consumers but also can keep them loyal for a very long time.
In this Unit, we will discuss brand and its various characteristics and types,
theories and challenges of brand management and strategic planning for it.

3.1 LEARNING OUTCOMES

After working through this Unit, you should be able to:
Ɣ Understand brand, its strength and role in marketing and the its
various characteristics
Ɣ Know the history of brand, how it evolved
evolve and
nd ggrew
veed an rew and how to make
it grow by
y creating brand portfolio
Ɣ Analyse
An brands
nds on the
b an
br he basis of theories
th theorries and
a d models
an moddelss of branding
bran
br an
ndingg
Ɣ Critique
Crrit que bbrand
itiq
iq management
rannd manan
nag
a eme t aand
men its
nd it cchallenges
ts ch with
alleenges wit
th thee help off
relevant
releevantt ccase
asee studies
as
Ɣ Plan
Plaan aand
nd ddesign
esig sstrategy
ignn st rategy ffor
or bbranding
ranndingg fr
ra from marketing
rom m arkketing
ar ng ppoint
oint
oi nt of view
ew

3.2
3.
.2 INTRODUCTION
INT
TRODU
UCTIO
ON TO
O BRAND
BRAN
ND
If w wee tr
trace
raca e th
the
he genesiss of bbranding rand
ndingg it wiwill
ill go
g back to the he iinitial
n ti
nitial
al ddays
ayss of
civilisation,
civi ili
l sati
tiion, wh
when, thouthough
ouugh tthehe wword
ordd ‘b‘brand’
brand did
nd’ di exist,
ist, bbut
id not exis
is ut iits
ts ffeeling
eeli
ee n aand
ling
li nd
senses
se were
ess wer present
e e pres sen
entt in ververy
e y cr
er ccrude
udee foforms.s Tha
s. That’s
at’s why, there was a tendency
among
amon
am o g th tthee pott
potters,
tter
tte s,, jjewellers,
ewel
ew elle cattle
leers, caatt
ttlle owners
le own
w ers orr craftsm
wn craftsmen
men ttoo ma
mark rk their
k the
heir
he irr oown
wnn
products
prod oduc
od uccts
t by se seals
sealalss oorr somee ot other
oth
her ideidentity
id
dentity m marks;
arks; so that
so tha customers
hat cu
ha custstom
st omeerss ca
om cann
iidentify
id entiify tthem
h m am
he aamong
ongg ot oother
herr pproducts.
he roduccts practices
t . Such pra indicate
actices ind
ndic
nd icatte th
ic the
he prpresence
reseenccece ooff
ffeeling
feelin
el ingg of ‘br
in ‘brand’
b an
a d’ among peo people
opl
p e at that time.
Don’t we eengage
agee in tthe
ngag
ng h habit of trying to brand ourselves by impressing
he
people with our distinct qualities and talents" And our goods too by stressing
upon their values in terms of money, services or qualities" Yes, we do it all
the time. So, brands are that much essential part of our lives.
Here in this section, we will try to understand what is brand and what are its
various facets, such as brand equity; brand positioning; brand diversity etc.
3.2.1 Understanding Brand
Although brands have been de¿ned in numerous ways from various
perspectives such as, consumers’ perspective, brand owner’s perspective
or in terms of purposes and characteristics (:ood, ), the most cited
de¿nition of brand was given by the American 0arketing Association in
, and it cites Brand as:
“A name, term, sign, symbol, or design, or a combination of them, intended
to identify the goods or services of one seller or group of sellers and to
differentiate them from those of competitors.”
69
Overview of Advertising However, it is much more important to understand brand rather than only
knowing its de¿nition. Brand is identity. Brand is value. Brand is trust.
Brand is credibility. There are not only physical attributes of a product or
service which convert it into a brand, rather there are much more important
and intense intangible values attached to a brand. A consumer does not
buy a shoe of Bata regularly because it is more attractive or beautiful than
shoes of other companies, rather he buys it because he associates himself
with the company, he relies on it, he trusts it; he trusts its credibility, he is
convinced that he is buying a good product with value for money. Such trust
and association need constant effort of ef¿cient delivery to the consumers
and effective communication.
These intangible values associated with brand are missing in the de¿nition
given above by American Marketing Association; however, Bennet (1988)
added the phrase ‘any other feature’ to the AMA de¿nition and tried to make
it more suitable. Thus the modi¿ed de¿nition of brand says that brand is:
³$QDPHWHUPVLJQV\PERORUDQ\RWKHUIHDWXUHWKDWLGHQWL¿HVRQH
seller’s good orr serv
service
vicee as distinct from those of other sellers.” (ibid)
d
Brands are are not
not limited e tto
limitted pphysically
o thee ph ysic
ys ical l eexisting
ally x sttin
xi products;
ng pr rod rather
o ucts;; ra
rath e tthere
ther
er here ccanan
branding
be brand ding ooff sservices, manufacturing
ervicces, mananuffac
actu
turing com
tu companies,
mpani nies
ni es, de
es destinations,
estin
nations
n , na
ns nnations
tiions andd
eeven
ev people.
en peeople.. Youo must
ou muust have
havve heard
heard inin many
manny conversations
coonverrsatiionns onn television
televiv sioon andd
elsewhere
elsesewh
w ere ththat
hat hhowow ssome
me ppeople
om eopple arare equated
re eqquatted w with brands
ith branndss and
n con
nd considered
onnsideered to o
b tru
be trustworthy
rustw
ru worth hy aandnd ccredible.
rediible. This
e. Thi means
is me
m an credibility
ns cr intrinsic
rediibilityy is an in
intrin
i sic
i quqquality
alitty off
bbrand.
a br an
nd..
3.2.2
3.2 Brand
2.2 B d Equity
rand Equity
The
Th he termm brand
teerm randd equity was
bra wa coined
c in
co ned to
to evaluate
evaluau te customer’s
custtomemer’s’s response
resspon
re se towards
onse tow
wards ds
brand.
br d T
d. This
his response
respponse is also
a soo used
al useed to measure
measuure thethe strength
sttren
engt
en g h of the
the brand.
brandd. The
Th
sstrength
treng
ngtth off a bran
ng brand depends
a d depend nds uuponon hhow
pon ow m much
uchh its ccustomers
uc ust
stom
tomererss ar
er attached
are atta achhedd tto
o it
it.
However,
Ho owe
w ver, r it shou
r, should
o ld not be confconfused
fus brand
u ed withh bran image.
and imag age. WWhere
here bbrand
r nd image
ra g
ge
i hhow
is ow a consumer
consuumer pe perceives
erceiivess th thee bbrand
ran which
andd wh
whic icch iiss bbasically
asic
asic
ical y a qqualitative
allly uali
littati
li t ve
perception,
perc cep brand
e tion, bran an equity
nd equi y iiss th
uiity the capability
he ca apa biliity ooff th
pabi bbrand
thee branandd to iinvoke
ran n ok
nv speci¿c
okee sppecci¿ ¿c
thoughts,
th
tho feelings
houghts, feelin ngs andd aattachment
in ttac
tt achm
hmen
hm towards
entt to
en towa
waard
rds th thee brbrand
bran
andd wh
an which
whic inÀuence
ichh in
ic nÀuen encce
en
the behaviour of the consumers ((-ethwaney and -ain,  and can be
quanti¿ed as well well. It de¿nes the relation of a customer with a brand brand. It is
not always possible that all customers respond to a brand in a same way,
they may differ in their responses depending upon whether the brand has
touched their chords or not to generate attachment with the brand.
There are many de¿nitions of brand equity given by the experts time-to-
time, some of whom associate brand equity with cash Àow (Biel, ),
while some associate it with brand value (Winters, ) and brand image,
however these can be said to be the interpretation of brand equity by these
experts. There is no doubt that brand image helps in increasing brand equity
and eventually brand strength, so all these three are inter-related to each
other.
3.2.3 Brand Positioning
When you go to a store to buy toothpaste, you may get confused after seeing
a plethora of products of various companies each of which is claiming
something different. There is Colgate having salt based and charcoal based
70
toothpastes, there is Close Up known for having mouth wash in it, there is Strategic Planning and Brand
Promise with clove oil and 'antkanti with herbal ingredients. Each one has Management
created its niche area. The customer can buy toothpaste as per his particular
needs and choice. All are toothpastes of various companies but they also
offer some peculiar and exclusive services with which the customers also
start identifying them. This way they create a unique place in customers’
mind. This is called brand positioning.
There are many physical or emotional attributes of a product. Most simply
any one of such attributes can be used to position the product in market.
Whichever company or product uses the most striking feature or attribute to
position itself gets ¿rst mover advantage and leaves no scope for others to
position themselves with the same attributes. We have example of 0aggie
which positioned itself as ‘two-minute noodles’ so strongly that after
it a number of other noodles tried to position themselves with the same
attribute, like Top Ramen, Yippie, Wai-Wai, Chings, but could not touch the
popularity of Maggie.
3.2.4 Brand Diversity
The types of bbrand rand
ra n oorr brand divers
nd diversity
sit hhave
ityy ha been
en eexplained
vee bee xpllai
ained byb vvarious
ario
ouss
scholars
schola lars various
rs in vari
ious wways. Here,
ays. He
Here enumerate
r , let us try too en somee ppossible
numeeratee so osssi types
s blee typ
pes
off bbrands:
rands:s:
Luxury
Luxu ury Brands:
Brandnds:
nd s: Although,
Although, ‘‘luxury’ r ’ iiss a rrelative
l xuury
lu e attive tterm
el erm and
m an depends
nd itt deependss upupon
pon
the cons
consumers
sumeers ththat what
at w h t they tthink
ha hinkk aass lux
luxury
xury
ryy andd wwhat
hat ass nnecessity.
eces
ec e sity Yet,
ty. Ye
Y t,
there certain
theere aree cert
tai brands
a n bran
a ds wwhich are
h ch ar
hi undoubtedly
re und
ndoubtted necessary
e ly not neces s ryy bbut
ssa possessed
ut pos ssessed
just
ju
ust to shshow
how class
w a clas when
ss w henn the cuccustomers’
sttomerss’ ddesire make
esire to mak their
ke th eirr ppresence
thei resence
unique.
unnique. ThThese
T e e are of vvery
es hhigh
ery hi quality,
ghh quauallity, exeexpensive,
p nsive,
pe e uunique
niqu
ni que an
qu andd crcreative.
creati
tiive
ve..
These
Thhese aare called
re call brands;
lled luxuryy branandss; suchc as M
ch Mercedes,
erc
r edes, GuGucci,
G Versace,
ccci, V ersa
ersace
sa ce, Ro
ce Rolls
oll
llss
Royce,
R yc
Ro yce, RRado
ado eetc.
tc.
Service
r icce Brands:
Seerv Brands: This iss ttype
ypee off bbrand
yp still
rand is stil evolving.
ll evolvi There
v ngg. Ther
e e aree mamany
m nyy
organisations
orrga
gani
n satiion
ni onss which
whic
wh ichh do not
not produce
pro duce goods
rodu
du rather
a her provide
goods rat de services
proovid serv es such
rvvicces uchh as
suc
Airlines,
Airlin
ines
in Banks,
e , Ba
es B nks, Car RenRental
enta
en tall CCompanies
omp Uber
panies like Ola, Ubber eetc.
tc So
tc. Some
me of ththese
thes
esee
es
service
seerv brands
rvice br
bran
ands
an dss aare
re nnovice
o ic
ov ice to the hee ¿eld branding
¿eld of brand
n ing an
nd and
nd so me hhave
some av
ve eveven nnot
ot
entered.
enteredd. SStil,l
t l,l it is a differ
ti different
entt ttype
ren ype of brand than product brand; called service
brand.
brand
Pharmaceutical Brands: Many scholars assume that modern branding
started by the pharmaceutical companies by using distinct names for their
products and protecting them legally (Jethwaney and Jain, 2012). The
medicines are not prescribed to us in generic form rather in the form of
some particular compositions created by various pharmaceutical companies.
Although it is most regulated type of brands, but it’s also one of the very
successful types of brands.
Business-to-Business Brands: There are certain brands which are not
available for public but to the industry or professionals such as brands
which supply the parts of cars to the car manufacturing companies, parts
of computers to the computer making companies and so on. Their business
with companies also depends upon their brand values. These are called
Business-to-Business or B2B Brands.
Power Brands: There are certain brands which possess the qualities of
71
Overview of Advertising strongest international brands i.e. legal title, intellectual property rights,
registered trademarks and patents with distinct tangible and intangible
characteristics are generally termed as power brands. India saw a number of
such brands after liberalisation in 1990s; such as Sony, Pepsi, Microsoft etc.
Corporate Brands: Some products are trusted due to the goodwill of
their manufacturer companies. For example, the products of Tata group
are popular mostly because they are manufactured by Tata. Such strong
manufacturing brands are known as corporate brands.
Check Your Progress: 1
Note: 1) Use the space below for you answers.
2) Compare your answers with those given at the end of this unit.
1. What do you understand by ‘Brand’"
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................................................................................................
2. How is
How i brand
r nd equity
bra
ra i y different
equuit diiff entt from
fferen
en f om brand
fr ndd image"
brand imaage
g "
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. .....................................................................................
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................................................................................................................
3. Explain
Ex
Explai Luxury
in Lu
L Brands
xury Brand with
nds wi
nd w th examples.
h exa
amples.
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3.3
3.
.3 HOW
HO
OW TO
TO CREATE
CR
REATE AND
AND SUSTAIN
SUSTAIN A BRAND
BRAND
Whenen you see a new pro product
r du
ductt iin
n ma
mark
market,
kett, do yyou ou iinstantly
ou nsstaant
ntly
ly bbuy
uy oorr iinquire
nquuire
about
abo
ab product
out the produc its
u t and it brand"
ts br
bran d" IIn
and" most ooff tthe
n mo cases,
hee casess, aanswer
case
se nswe ‘yes’
yes’ wee do
werr is ‘y
we yes’ do
get curious and may try it. This is why brands are created. But they are not
created in a day; they are result of a long term sustained effort for long term
gains. Let us discuss it here.
3.3.1 Evolution of Brand
In the previous section, you have learnt that the sense of branding was
present among human beings since the initiation of civilised society as
we have some proofs of the sealed goods excavated from Harappa. Also,
branding is a part of persuasive communication. Aristotle considers that
communication is basically to persuade the receivers, so this means we
communicate to convince people; to pursue them and to impress them and
in other words we try to brand our thoughts, our personality which is basic
nature of human beings.
However, the pharmaceutical companies started patenting their products,
legally registering the names of the products which can be said to be the
initiation of the modern type of branding. Now brands have evolved so
much that even places, people and thoughts are branded.
72
3.3.2 Brand Sustenance Strategic Planning and Brand
Management
The sustenance of a brand is a bigger challenge than creating it. Creating a
brand requires constant interaction and involvement of consumers with it
and delivering up to their expectations. After testing the brand over a period
of time the consumers become brand loyal which is climax for any brand.
But to maintain that status and relationship with the consumers, the brand
needs to perform regularly and keep occupying its share of consumers’
mind, keep reminding them about the brand by introducing new variety of
the products or by improving the product as per the demand as well as to
meet the competition. It should not let the brand become irrelevant to the
consumers.
Regular updation in the product or services of a brand is required to remain
relevant for the consumers. This means, it has to remain fresh and not
outdated so that new generation like it as much as the older generation liked
it. It can be done in various ways such as repositioning the product as per the
demand of the time, introducing new range off pproducts roducts as per the demand of
the market, using innovative and modern ways y to interact and involve the
consumers. We have good example of Bata in context.
n thiss co n ext.. IItt al
cont already
lre
read has
adyy haas a
brand lo loyal
oya older
yall olde
der gegeneration
enera
rati
ation
o however in or order
rderr to aattract
ttracct tthe
he nnew generation
ew gene erattionn
too,, iitt has intr
introduced
inntr
trod
o ucced modern
dm odernn range ooff de
designs,
esig collaborated
gns, colla aboorated with
ed wit itth aanother
notther
modern
mo odernn brand
braand Hush
Hussh Puppiesies and
Pupppie nd gott celebrity
an i y endorsements
celeebrit en ndorrseemen nts byby younger
yoounnger
aartists
rtistts like
ke KKriti
riti
ri Sanon,
ti S anon, to strik
an strike
ke ccord
ik o d with
or h the
hee Gex x X.
3.3.3
3 3 Making
3.3.
3. ingg Brand
Makin
in a d Identity
Bran e tity for
Iden
Id Market
forr M arkeet
While
W brand
hile bran ppositioning
nd po ng cann be iimitated
sitioonin
in other
m taated byy oth
mi t er brands totoo,
o bbrand
oo, rand
ra ndd identity
is uunique t a bbrand
niquee to which
rand whi c is not ppossible
ich osssib
ble to imitate.
o im
mitate. AAlthough
ltho
lthoug
ho ugh br
ug bbrand
andd iidentity
an denntiity
is also
also how
how thethhe target aaudiences perceive
udienncess per rceive it oon basis
sis of iits
n the basi
si tangible
ts tan
angi
an gibble an
gi andd
iintangible
intaang
ngibble characteristics
l cha ara t cs bbut
r cterrissti ut tthis identity
his id
ideentity bbased
y is ba sed on iits
t eexclusive
ts x lu
xc lusi ve qquality.
sive
si uaali
lity
t .
We hav
We have
avee eexample
av xample of KFC KFC,
FC, wh
FC identi¿ed
nti¿ed ddue
whichh iss ident
nt ue to its exclusive inimitable
food
food ppreparation.
repa
para
pa rati
ra tion
tion.
Champagne
C am
Ch mpap gn always
gnee will alway ys bee uunique
ay niquee ddue
ue to its origin iin the
n th
he par
he particular
arti
ar ticu
ticula
cu region
laar regi
gion
gi on
off France
Fra
r nce cacalled
all
lled Champagne.
ed C hamp
ha m agne. Th responsible
Thus the factorss respons sib
ible orr bbrand
le for nd iidentity
raand dent
ntit
nt ity
it
can be listed
listedd as follows:
i te followss:
Product as a Brand: In such cases, the consumers consider the products
as brand, so if the quality of the product is poor, the brand image will also
faint. Sometimes even the manufacturers are identi¿ed for a particular type
of product or services like these days Reliance is identi¿ed for Jio.
Also product attributes help the company in its brand identity. The products
with good features and more bene¿ts strengthen the brand identity. Also
if a particular product is originated from a particular place and cannot be
produced anywhere else, then it is also its exclusive identity. In Indian
market, the leather produced in Kanpur, sports goods produced in Meerut,
locks manufactured in Aligarh, chappals manufactured in Kolhapore have
their unique identity.
Organisations as Brand: The organisations can make their brand identity
by winning people’s trust and love over the period of time by launching
people friendly services, products and schemes. They can keep highlighting
their work, achievements and innovations to strengthen their identity. We
73
Overview of Advertising have example of Tata, which apart from its speci¿c products also highlights
itself as an organisation or corporate group and keeps reminding people
about its contributions in the growth and development of the nation.
Brand Personality: Just like the personality of human beings, brands also
carry a personality which helps in making its identity. The personality of a
brand is created by its attributes and its relationship as well as behaviour
with its customers.
Symbol of the Brand: The symbol or logo of brand also makes it unique and
easy to identify by its consumers. People feel proud by wearing a garment
carrying symbol of Nike, they feel associated with the brand through that
symbol. So, a symbol can be said to be the physical representation of the
brand.
3.3.4 Growing Brand Portfolio
In order to create and sustain a brand, the companies need to improve
its portfolio too with time. One cannot imagine remaining attached to a
brand with lesser
lesse
s r op
se options
ptions and an outdated service. Many a times market
also forces the brbbrands
annds tto improve
o impr
p ove its portfolio because other competitors
have
may hav updated
ve uppdatted
e ththemselves.
hemselve portfolio
rtfollio ooff a bran
ves. Thee por
ve brand
and can
n ca improved
an be impro
r vedd byy
ro
uusing
us following
ing fo wingg methods:
ollow meth hodds:
Byy increasing
incrreasin ng geographical
geoggrap reach
phiical reac ch ooff th
the
he bbrand:
nd: In many
ran maany
n cacases
ases it hass
bbeen
be en seen
n see that
en th a tthe
hat h br
he brands grow
randds grrow iin reach.
n termss off rea Some
ach. S me nnational
om a iona
at n l bbrands
na ndss ccan
ran an
become
be me inteinternational,
al, ssome
ernaational me llocal
ome occall bran
ocal brands start
ndss st
sta operating
art op eraating in vvarious
per a io
ar other
ious oth herr
states
staates ttoo. You
oo. Yo hhave
ou ha example
ve examp ple national
l off na
ati
t onnal brand Mother Dairy. Earlier it used
to ooperate
pera only
rate on nly in Delhi, but nonow you can ¿nd it in most of the capital cities
w yo
India.
of Indiaiaa.
B lau
By launching
aunchi
au hiing new proproducts
odu
duccts un under thee same m bra
me brand
rand
rand n name:
ame: Thiss is a
ppopular
opu
pula
l r me
la methodd to improve the portfolio
h portf foli brand.
lio off a bra nd.
d UsUsually,
U brands
ually, brand ds llaunch
aunchh
new
ne products
ew prod ducts uunder their
nder the
heir
he i ooriginal
r gi
ri gina
n l br
na brand
bran name
andd na
an ame ttoo inincrease
incr
crea
crease
ea ts bbrand
se its r nd vvalue
ra alue
alue
and to iimprove
an portfolio.
mprovee its porrtffolio
io. Th
io This is iiss aalso
so ttermed
lso medd as brand
erme
erme brran
andd extension.
exte
ex tens
te nsio
ns on. We
io We
havee m many
any suchh examples.
examp Sony
plees.. S onny wawas kknownnow for
ownn fo
ow or it audio
its au products,
udiio pr
prod
oduc
od ucts
uc ts, bu
ts later
but laater
manufacturing
uffacturingg ttelevision
itt started manuf elevis
el isiionn sets
is sets and mobile
nd mob obil
ob phones
ilee ph
il phoon s ttoo.
ones ooo.
By collaborating with stronger brands: Another method of improving
brand portfolio is by collaborating a brand with strong brands which
increases the reputation and prestige of the original brand as well as the
reach and range of its products. We have already discussed how Bata revived
itself for the younger generation by collaborating with Hush Puppies.
Check Your Progress: 2
Note: 1) Use the space below for you answers.
2) Compare your answers with those given at the end of this unit.
Fill in the blanks:
1. Brand identity ......................... be imitated. (can/can’t)
2. Brand personality helps in making............................... (Brand
identity/ brand extension)
3. Brand portfolio can be improved by............................(Brand identity/
brand extension)
74
 Strategic Planning and Brand
3.4 BRAND MANAGEMENT Management

Branding increases the value of a product from a mere physical good to an

emotional, status symbol and credible good. It is more in the mind of the
consumer than existing physically. It takes a long sustained effort to create
and sustain a brand and that’s why brand management is required. Once a
brand image and its identity is created, proper planning and management
procedure is required to maintain that image and identity of the brand.
As branding expert Kevin Keller notes, “Building and properly managing
brand equity has become a priority for companies of all sizes, in all types of
industries, in all types of markets.”
It has become all the more important in recent times, because majority of
the consumers have no time to research about the product and the services,
they have to make a fast and smart choice. So they go for well established
brands, which have made their credibility and trust in the mind of consumers
by providing continuous quality services and n cre
nd created
eat
a ed
e unique and strong
identity by using excellent brand management strategies.
ntt stra
ategiies.
In this section,
sectio
ion, wee wi
n, w will
w ll try to discuss th theories,
thee th
heori
r es, m
ri models
d ls aand
ode n cha
nd challenges
hall
ha llen
ngess off
branding
brandiing and see their
e the applications
heir applilica
li through
c tions thr relevant
roughh re
ele studies.
l vannt casee stud
udie
ud ies.
s
s.
3.4.1
4.1 Theories
3.4.
3. 4. Theo
Th eor ess and Models
ori Mod els off Branding
del Bran
ndingg
The
T theories
hee th
theo r ess and models of bbranding
ori raandining are aactually
in ctu efforts
ually effoorts tto understand
o unde
deerstaand the
brands
a ds from
bran
an from various
v riouss perspectives.
va persrspe
rs ess. According
p ctives A cordin
Ac ng tot Tarnovskayaa a and
Tarnovskkay and Bertilsson
Bertrtilsson
(Ed,
(E 2017),
Ed, 2017) the
7), th
7) brands
he bran
an
nds
d and branding
nd bran ndingg are ap aapproached
p oached fro
pr from
romm three di ddifferent
f erent
ff
perspectives:
peerspectives:: brand
bran
br and management
managgemeent perspective,
persppectitiive, consumers’
co
ons
nsum
umer
um e s’ perspective
per
erspspecti
sp tive
ti ve
and
annd critical
crittic
ical pperspective.
e spectivee. However,
er Hoowevver, hhere wee aare
ere w concerned
re more co
conc cer
erne
nedd wi
ne with brand
th braandd
management
mannageemem nt pperspective.
erspecti
tivve.
We
We hhave
a e se
av sseen with
en wit examples,
ithh examampl
mples es, th
es throughout
hro
oughoout the
hee Unit that branding requires
two
two unique
uniqique
ique ffeatures;
eatu
eature
res;s consistency
es; onsisteenccy and
co nd longevity
an longgevity to develop
dev
evel
elop
elop aand
ndd ggrow;
row;
roww;
which
whhic ccan
ichh caan be ddone
one bby positioning,
y positio ioni
ioning
ni advertising
n , ad
adv ultimately
vertisingg and ult
tim
mate
mate y bby
tely developing
y de
eve
veloopi
ping
ng
the brand
th bran andd pe personality.
pers
rson
onalalit
ity.
it All
y. A lll the mmajor positioned
ajor brands are pos
aj siti
siti
tion ed iin
oned
on the
n th market
he ma
markr et
rk
such
chh tthat
h t they are unique in
ha n tthemselves.
h mselves. The
he They
ey are positioned with the help
of integrated
integrate marketing
tedd ma
markrket
etin aapproach;
ingg ap proach; of which advertising is an important part.
This consistent endeavour leads to the development of the brand personality
and ultimately the success of branding is said to be when the consumer
assumes the brand as an integral part of his/her personality. It requires a
long term vision and planning to reach to the third stage of branding which
cannot be done without understanding the consumers’ expectations and
demands.
A brand can have many products attached with same idea or same spirit.
This means that all the products associated with a brand are uni¿ed by
same ideals and same vision. We can represent them by a pyramid structure
(shown below) in which the vision and goal of the brand can be kept at the
top, the next level consisting of section two and three of the diagram; clearly
de¿nes and propagates its goal and vision in such a way that it embodies
or shapes the uniqueness of the brand, the next level consisting the section
four and ¿ve of the diagram; distinguishes one product from the other and
position them according to their characteristics however tying them together
with the common thread of brand’s vision and goal. For the brand, it’s a 75
Overview of Advertising top-down approach which creates its goal and vision ¿rst and then moves
towards its communication or positioning, while for the consumers’ it’s a
bottom-up approach who see the products ¿rst physically and them move to
its uniqueness and values.
So for brands it’s a journey from intangible to tangible whereas for
consumers it’s a journey from tangible to intangible. The wider the base of
the pyramid, the greater is the dif¿culty level to convince the consumers that
they belong to the same family, same ideals, same spirit, SAME BRAND.
The consumers perceive the product as per their own interpretation if it
does not carry a strong brand signature as a token of its family name. In
absence of any such strong signature, the product slips out of the brand
identity and loses its brand value. Thus it is very dif¿cult to keep a large
number of products of a brand associated with the same brand values. We
have examples of very few such successful brands having large number of
products, e.g. Tata Group. This branding pyramid can be shown as below:

Figure
r 3.1: Th
The Bran
B
Branding
ran
andi
ding
di ng P
Pyramid
yram
yr am
mid ((Kapferer,
Kapf
Kapffer
erer
er, 20
er 2008
2008)
08))
08
3.4.2
3.4..2 Managing
Managiing Brand
and and
Bra and its
its Challenges
Challen
ha ennge
ges
From
From the discussions
discusssions in the above section, it is clear that in the process of
brand building the managers move from intangible to tangible where as the
consumers move from tangible to intangible. They usually believe what
they see. In such circumstances, it really becomes a very challenging work
for the managers to live up to the expectations of the consumers because
both of them perceive the brand from two completely contrast viewpoints.
Gone are the days, when one strong product was synonym to the brand;
now-a-days there is fragmented market, fragmented media, technology
driven audiences and shopaholic crowd, which needs personalised products.
It poses major challenges for the brand managers. Some of these challenges
are discussed below:
Fragmented Market: Where earlier, market was studied in terms of
segments, now it is studied in terms of various fragments. It further lowers
the volume of productions too. For example earlier only one type of shampoo
of any particular brand was enough, so its production was also in high
volumes and almost people with all kind of hair qualities used to consume
only one type of shampoo, however now-a-days, same brand produces a
76
large variety of shampoos for dry hairs, for dandruff, for weak hairs, for Strategic Planning and Brand
oily hairs, for damaged hairs due to which the volume of production of the Management
shampoo of various types gets fragmented on the demand of the market and
ultimately the promotional cost of each of these products reduces hugely.
Fragmented Media: With fragmented market, media is also fragmented.
There are varieties of media available and wide range of media consumers
are also emerging. Where earlier the audiences had choice of only three
media – print, radio and electronic - with limited number of publications
and channels, now internet has provided a wide range of platforms to the
consumers from where they get information(s) and it has become very
dif¿cult for the managers to be available on each of these platforms. Even
on these platforms, there is very dif¿cult to capture the attention of the
audiences.
Technology Driven Audiences: The audiences have become smart with the
use of technology. Whatever they have to buy, they search all the information
online and compare it with other brands. With the power of information in
depend
their hands, customers are king. They do not dep upon
e endd up pon the manufacturers
and distributors for all information about the pproductct rrather
roduct they
ather th
hey themselves
y the
ems
m elve
vess
browsing
are browwsi
sing
n the
ng information
h inf
nforrma
m ti make
t on and mak decisions
ke deccisiions aaccordingly.
cco ordin
in
ngly.
y
Shopaholic
Shop opahollic Crowd:
op Cro owd d: One
One veryy signi¿cant
signi¿ challenge
¿cant cha allengge is aalso
lso that tthe
he ppeople
eoople
like
liike
ke to vivvisit the sshopping
siit th hoppping m malls
alls the
al themselves.
h mseelves.. Sho
he Shopping
h ppiing iiss ttheir favourite
heirr favo time
ouritte ti
ime
ppass.
asss. However,
How
Ho wevev r, this
his tendency hhas
thi a been
as bee ignored
e n igno the
he bbrand
oredd by th rand managers.
nd managagerss. Th
ag They
hey
usually
usuually trytry too woo
woo the
the consumers
o sumeers orr users,
con users,, not
o the shoppers.
sho
hoppper e s. The
The brands
braandss in
shopping
sh
hoppingg m malls l or att aairports
allls irport
r s are au
rt aauthentic
hentic ccentres
th ent brand
n res for bran
nt an promotions
nd promotio ions and
io
the
th
he shoppers rss bbuy
uy tthem
hem m as aauthentic
utheentn ic bbrands.
randds. This puppurchase
rchase iiss most of the
time
tim
me spospontaneous
ontan neo without
e us witho any
out an ny pplan,
lan, oonly
nly for the sake k ooff br
ke bbrand.
an The
nd. T brand
he bra andd
managers
ma ana
n geers must
r mus recognise
st recognis ise th
is the potential
he po otentntia shoppers.
tiaal of suchh shoppe ers
r.
3.4.3
3 4.33 Line
3. ne Extension
Lin t nsion and
Exte and Brand
nd Extension
Bran Exteension
n
n oorder
In rder to un
rd understand
unde
d rsta
de ndd tthe
tand concept
he concec pt of Li
ce Line extension,
n extennsion, we must
we mus ust ¿rst
us ¿rs understand
unddererst
stan
st andd
an
product
the pr
prod u t line. A product
oduc
uc p od
pr ucct mayy eexist
oduc various
xist in var
a ious wweights, prices,
eighhts,, pr
pric
icees,
ic es shshapes
hap
apees
es
and
nd types;; aall
an ll ooff wh
which
whic
ichh ca
ic ccan
n be ccalled For
alled productt line. Fo
al example
or ex
examampple C
am Clinic
lin
in Plus
nic P lus
lu
shampoo
shampo ccan
pooo ca n be found inn va various
vari
rious packages from sachets to 200ml or 500ml.
These also exist in various types like anti dandruff dandruff, damage repair shampoo
shampoo,
amla-shikakai shampoo etc. All of these can be said to be product line of
Clinic Plus shampoo and if any further type or size or shape of the same
brand is added to this line, it is called line extension.
Now-a-days, the consumers are very demanding and they look for
personalised products well suited for their type of hair or skin. So there is
a growing need to add new products with little speci¿city in the bouquet
of product line and that’s why there is line extension. Thus line extension
means adding a new variety to the product line in terms of price,
package, size, weight, variety, colour or any such minor variation in
the core product. This also enhances the chances of pro¿tability of the
product since it can now cater to diversi¿ed needs of the consumers by
line extension. Sometimes it is the demand of market and competitors too,
since other brands extend their product lines so the competing brand is also
compelled to extend its line.

77
Overview of Advertising Line extension is quite different from brand extension. When a product
is extended with little variation in the same product category, it is line
extension whereas when the same brand launches a completely different
product with same brand name but in different product category, it
is called brand extension. Brand extension is very useful in making the
brand portfolio stronger and appealing. It further helps in creating brand
image and ef¿ciency.
Line extension exploits the economies of scale, while the brand extension
exploits the economies of scope by capturing the possibilities of the market.
Both helps in not only increasing the pro¿tability and appeal of the brand,
but also provide strength to the brand portfolio and its image.
3.4.4 Case Studies
There are many case studies which show how a brand can sustain and grow
even after facing challenges. Two of them are being presented here:
Case I: The Case
s off soft
Caase sof drink Coca-Cola
Coca-cola is a vvery
ery we
well ll known carbonated soft drink not onlyy in India but
whole
in the w world.
o ld. IIt’s
holle wor
or leading
t’s a leaading company
di com o paanyy in th
om the ¿eld beverages
ld of be India,
everagess in Inndia,,
which
w ich ccovers
wh 60
0 of
overrs 60 of the
thhe carbonated
carb e ssoft
bonatted drink
oft drin market,
nk m ark 336
ket, 36  off fruit
fruit drink
itt dr
rinkk
market
m
ma rket aand
nd 333
 of ppackaged
3 ackkag water
ged w market.
aterr ma
arkeet.
ruled
u ed the IIndian
IIt rul
ul nddian m market
ark ket ttill 1977,
ill 19
197 but
77, bu ut tthen
hen under
n und der tthe
he F Foreign
oreie gnn Exc
ei Exchange
x haange
xc
Regulation
Regula
Re Act
l tion A (FERA)
ct (FERA RA)) in introduced
ntrtrod
oducuced
uc 1973,
ed in 1973 73, it had ad tto reduce
o reduduce cee iits
t sstake
ts take and nd
consequently
coonseq quentlyy itt vanished ffrom r m th
ro market.
thee ma arket. It bounced back with full power
after
afte
ter 16 lonlong
ng yeyyears
ars in 19933 wh when en iitt acqu
acquired
q ired most of the local popular
Indian
Inddian n bbrands
nds of
rand o soft drinks
drin
dr nks such
in succh as Thums
Thums ms Up,
Up, p Limca,
Lim ca Maaza,
imcca, Maaz
Ma azza, Citraraa and
nd
Gold
Go dS Spot.
pot. TThis
hiis huge acq acquisition
c uiisiti ion ggave
tion ave mu
av much ch bbigger
igge
ig cconsumer
gerr co nsum
ns umer
um er bbase
ase too tthe
he
ccompany
m any aass w
omp well manufacturing,
ell as man anufuffactu uriing, bbottling
ring tttling aand
ott ndd ddistribution
istr
is trib
tribut
ib uttion po power
powe
werr anandd
assets.
asse
setts.
ts ThThat
hat was a the time of gglobalisation
l balisation
lo o yyet e the locall marke
et marketkett ha
ke had
ad to bee
catered
caateredd aand
nd the brand co ccoca-cola
oca-c-colla su
-c succeeded
succcee
eede
ee dedd in bboth
de by hhaving
otth by avin
av ingg a co
in combination
combmbin
mb inat
in atio
t on
both
of botothh internat
ot international
tional ass wwell
elll ass llocal
ocaal bbrands.
oc ndss. IItt al
rand
nd allowed
llowe
lowedd th local
thee lo
oca brands
c l br ands llike
bran
an ik
ke
Thums Up, Sp
Th Sprite
prite andd F Fanta
antta tto
an o jojoin
joiin tthe
in h iinternational
he nt na
nterna
natition
tional
on family
al fam
ammili y of bbrands
rand
ra ndss of
o
the company. It worked on its USP of impeccable quality and with its huge
investment in India it also created employment for large number of people people.
After getting a tough competition from its rival Pepsi, it revived its marketing
strategy in India. It understood how important it is to think and act locally
in spite of being a global brand. Coca-cola CEO realised that a single global
marketing strategy or campaign will not work for all types of local markets,
and then in 2001 they adopted separate marketing strategies for rural and
urban India. For urban India, it coined a tagline ‘Life ho to aisi’ (Life as it
should be) to tap the aspiration and ambition of the youth, who are looking
for a better socio-economic status of their life at that point of time. For
rural India, it wanted to introduce itself as an alternative to the water outside
their home, so it launched a campaign ‘Thanda matlabcocacola’ and also
launched smaller bottles at affordable prices keeping in mind the paying
capacity of rural people in India. Targeting the rural India was a smart move
by Coca-cola and it delivered in terms of growth of the company. (Mahile,
E.2011).

78
Case II : The Case of Hindustan Unilever Strategic Planning and Brand
Management
Hindustan Unilever is a subsidiary of Anglo-Dutch multinational consumer
goods company, Unilever. It is world’s third largest company in terms of
consumer goods with global brands like Axe, Dove, Clear, Lifebuoy, Lux,
Ponds, Radox, Rexona, Close-up, Sunsilk, Tresemme, Vaseline etc, mostly
all of them also exist in India.
Unilever very strategically develops its brand portfolio by brand extensions
and line extensions. It tries to explore the positioning opportunities of its
products amongst the target groups and the potential consumers. First it
tries to map the existing brands across the possible positioning opportunities
trying to gauge where the gaps are lying. If there is a feasible possibility to
bridge the gap in positioning then it repositions the existing brand or takes
the decision for extension of the existing brand and if not then it creates
a new brand. It has gone for a number of brand extensions to expand the
brand portfolio.
We have example of 112-year-old brand Lux, Luxx, which has been extended to
a wide range of body and hair wash products. s Lifebuoy
febuoy was introduced as
Life
soap, but now extended as a hand wash too. Hindustan
Hin
i dust
in an Unilever’s
stan Unileve r s Axe
ver’ Axe brand
braand
dominating
is domin
nat
atin the
ing th Indian
he In
Indi
dian market
an m male
arket of ma deodorant.
ale de
eoddor
o antt.
Onee amongst
a onngs
am gstt the
t e successful
th suucc
cces s ul brands
essf
es r nds off HUL,
bra HUL L, 'ove
' ve was also
'o also introduced
intrododduceed as
as a
beauty
beau
be a ty y ssoap,
oaap, but later
ater on itt eextended
u lat xtennded tto shampoo,
o shhamp
mpoo, con
mp conditioner,
ndit n r, bbody
itione
ne lotion
ody lot tion
which
w hicch a is is a part
partt of good business
buusi s strategy.
s neess strateegy. Its success
succcesss is due
due to brand
braand
extension,
extetensio
te on, p product
rodu ductct iinnovation
nnov
nn o ation n and d ggeographic
eogrraph expansion.
hic exp on. It
xpaansiion It was
was planned
pllannned
to extendd the br bbrand various
andd in var i us ccategories
arrio ategorories w with
ith innovations
h useful innonoovatit onns ba
ti based
ased on
the
th requirements
he requirem emmene ts of wo women
omenn andd then spreading
en spre eadi
ding geographically.
i it geogra aphhic
ical
ally
ly. So, the
¿rst
¿r s extension
rst extenen
nsi on was Dove
sion Dovve moisturising
mo ng body
oisturrising boddy wash
w sh with
wa ithh innovation
wit inno
in n vaati
no on of
tion of Dove
Doove
nutrium
nutrt ium
tr technology
m techn nology wh which
hich ggivesivees the nourishment
h nou
he urishhment of vvitamin
itaami
minn E an other
andd otthe
herr
nnutrients
nu trrie
i ntts to thee skin.. W With this
ith thhisi eextension
x en
xt nsiion aand innovation,
nd inn
n ovation,n the brand
he bra and eexpanded
xpan
xp nded
globally.
glob
gl o ally
allly This
ly. T his didn’t happ happen
p en
pp overnight.
n overnrniight. IItt requi
rn required
u red a proper target audience
research
re
rese
eseara ch aand nd bby understanding
y unde
unnde
d rs
rsta
tandin
ta th rrequirements
ng their equirem e ents anand
nd tthen
henn st
he strategically
trattegi
tegi
giccall
ca ly
planning
plannni accordingly.
n ng accordi dingly. 6unildro,
6unnildr droo, L 6 AkoiMam,
illdr AkoiMam,  .
Check
Ch e k Your
hec ur Progress:
Pro
rogr
gres
esss: 3
es
Note: 1) Use
Usee the
Us the space
spac
sp ace below for you answers.
2) Compare your answers with those given at the end of this unit.
1. What do you understand by brand management"
..............................................................................................................
..............................................................................................................
..............................................................................................................
2. What are the challenges of managing brands these days"
..............................................................................................................
..............................................................................................................
..............................................................................................................
3. What is the difference between ‘line extension’ and ‘brand extension’"
..............................................................................................................
..............................................................................................................
..............................................................................................................
79
Overview of Advertising
3.5 STRATEGIC PLANNING IN BRANDING
Since the beginning of this unit, it has been emphasised that brands
differentiate same products of different companies from each other. They
make each product unique. Only brands project a product more than a
physical entity and thus make them incomparable. This is possible only by
strategic planning, otherwise one product - shoes – be it Bata or Reebok,
how are they different from each other. It is the values associated with them
which make them non substitutable. The strategic planning for branding
has become all the more important in recent times, because audiences as
well as the connecting points with them are changing very rapidly. Today’s
audiences are interactive, collaborative and participatory. They are not
passive buyers rather they are active users who would like to interact with
the brand before buying. They cannot be reached on a single platform, these
active users are volatile and they have multiple points of contacts; from
traditional newspapers to FM radio to social media. In such circumstances,
branding has too be ddone
one strategically. It has to be done with a long term
on
vision.
Understanding
3.5.1 U nderrsttan ng the
a din the Market
Marrke
k t
Market
M arket has aalways
ways bbeen
lw eenn oone
ne ooff thee keyy fa
factors
actor
ors in deciding
n deccidding the cocourse
oursse ooff a
brand.
bran
and. T
an Today’s
oday market
y’s mark ket iiss m
more dynamic
ynamic tthan
oree dy han traditional
n the trad ditiion
o al market
a mararrket wh
whichh
was
w as majorly
majo
ma j rlyy dominated
doominaatedd byy one super u err product
sup prroduuct off a brand.
bran d A Brand
nd. Braand used
use
s d
to
o be kn knownn byy its single su ssuper
per pr
pe pproduct
oduuct andd brand managers used to tel tell
ll
consumers
connsum mers w what
hat
a to use rathrather
th
here than un uunderstanding
derstanding their requirements. The
culture
cul supermarkets
lturee of su uperrmarket etss an
et shopping
andd shopoppi
op ping
pi malls
ng mal alls
alls hhas
as aalso changed
lso ch
ls chana ge the
gedd th way
he wa ay th
thee
market
ma e usedd to bbee opera
et operated.
ated. No Now w sa
same products
m pro
me rodu
ro ctss of vvarious
duuct ariousu bbrands
us raand
ndss aree ke
keptpt
onn the
hee shelff side-by-side
de-by-sidee in the
sid the supermarkets
upermarkkets and
sup nd aree stores
an stor
st e in
orres in thee shopping
shop
oppi
op p ngg
pi
malls,
m
ma lls,
ll they aare
s, so th re very easy to compare in terms of price, weight etc.
This
Th culture
is cul
ltu mass
t re of m ass mmarketing
arrkeeti made
tinng m i eessential
adee it
ad s en
ss t al tto
enti
ti understand
o un
undeders
de rsta
rs t nd tthe
ta he nneeds
eeds
ee ds ooff
the
th consumers.
he coonsumers. T The traditional
he tra onall fform
adiition
on orm
or m of bbrand
rand
rand bbuilding
uild
ui ldin
ld when
ingg wh
in hen a ssuper uper
up e pproduct
rodu
duct
du
synonymous
syyno
n nymous too th tthee bran
brand used
nd us
use be llaunched
ed too be aunchhed followed
hed foollow
owed
ow ed bby iitss di
y it distribution
dist
stri
st ribu
ri and
butiion an
bu nd
ppromotional
romotional ac activities
ctivities which would ultimately convert into brand loyalty;
is now defunct. Now there is equal participation of distributors and retailers
in the establishment of brand. The distributors’ brands are major problem
of today’s market which provides cheaper alternatives of the branded
products. We have very good example of such branding available in the
form of Chinese products as alternative of branded products e.g. people buy
Chinese mobiles with the same features of i-phones at a much cheaper rate.
Thus market today is very dynamic which needs to be understood before
planning for branding.
3.5.2 Designing Market Driven Branding Strategy
While designing the branding strategy, the consumers as well as market
must be taken into account. If a product of a famous brand is launched in the
market, it should be taken care of that it is meaningfully different from the
other similar product otherwise, from the very beginning of branding would
be Àawed. Brands should be launched and managed in such a way that they
prove to be a valuable asset which can convert the consumers into brand
loyalists. If the cheaper alternatives of a brand are available in the market,
80
still the brand should emphasise on that it’s different and class apart from its Strategic Planning and Brand
cheaper alternative; only then they can combat the menace of distributors’ Management
brands.
The brand must provide intangible values with the product such as pride,
emotions, trust etc without which the product can be copied by any other
manufacturer and can be sold at cheaper rates. It is only these intangible
values which create a difference between a branded good and its similar
product. Depending upon the market, there could be following branding
strategy which could be implemented as per requirements:
Involving the consumers: Since the consumers of changed atmosphere
are active participants, so all types of brands try to involve the consumers
in the branding process by adding them to their family and making them
proud for it. Also they are providing the consumers the ¿nancial bene¿t by
accumulating points on their purchase and redeem these points after certain
period of time. This makes the consumers to feel important and part of the
brand.
Reducing the duration of advertising: Itt is a w well
ell known fact that
advertising is a veryy important compon component
onen marketing
entt of m arke
k ti
ke ting
n mix x ooff an
ix aany product
y pr
prodduc
u t
brand.
and bran Advertising
andd. Adve ertisi ot oonly
sing not introduces
nly introd brand
duces thee bran rather
nd ra her it aalso
athe lsoo mai
ls maintains
intaains
recall vvalue
thee re alue
al the
ue of th brand
he bra d by ffrequently
bran
an requen ntly aappearing
ppe
p arin
pe mass
ng onn m media.
asss med di E
dia. Earlier
arrlier
the
th ideal
he idea duration
eall du
ea durati ion ooff an adv
advertising
dvertisi
dv sing
si n ccommercial
ommmerccial wwas seconds,
as 300 sec condss, bu but
ut nnow
ow
there
ther
th re is strategy
i a str rat
a eg
e y to reduce th this
his time
i tim duration
ime dura
im ationn to 10 sseconds
econ
onnds so th tthat
at in the
same
sam price,
me pri ice, tthe brand
hee bran
andd ca
can not ononly
nly bbee intr
introduced
u ed bbut
roduc also
ut als
so ca
cann be rep repeated
epeaate
tedd
two
wo moree timess thu
tw thus maintaining
us ma
m in
nta
t ininng thee rrecall
ecall value
ll val This
a ue too. Th i would bbee much
his
economical
conomicall ffor
ec o tthe
or he brandn m managers
a ageers in casee off fragmented medi
an mediadia ttoo.
oo.
Community
Co ommu unity m markets:
arkets: T The
he ppurchasing
urch
chasin habits
ing ha
in consumers
abitss of consum
umerrs al
um alsoso ddepend
ependd on
ep
their
thei peer
ir pe groups,
eer grou family
ups, fam habits,
milly ha ideology
abitss, ideoeologyy andd social ci
eo circle. There
irclee. Th her
eree ar heath
aree he
eath
cconscious
co nsci
c ouss andd na
ci nnature
ture
tu loving
r loviningg ppeople
in eopple
l whoo like to buy organic food and wear
nnatural
na cloths.
tural cl
tu clooths.. They ey
yw would
ould
ou prefer
ld pre efe paper
ferr pape
p r enve
pe envelops
elops oover poly-bags
ver po
ve polyly
y-b
-bagags an
ag can
andd caan
be bbrand
rand
ra n loyal al tto Khadi
o Kh ad
di or FFabindia.
abin
ab i dia.
in There
a. There are feminist
r femin groups
nist gr
grou ups w whoho wwould
ould
ou ld
wwear
we ar oonly eethnic
nlyy et
nl hnic ddresses
thn ress
re sses
ess and acc accessories
ccessories tto reinforce
o reinfo
foorc ttheir
rcee thei
hei personality.
eirr pe
pers sonaalit
ali y.
There
Th her
eree can be community mar markets
arke
ar k ts set up forr such community groups. W
ke Wee
example
have examp mple le ooff De
Delhi
Delh Haat
lhii Ha
H att for such a community market.
Involving the complete chain of marketing: Since today’s market is more
dynamic and it has active participation of each component, no one could
be left unattended in the marketing chain. It cannot work on the business to
consumer model rather brand manager will have to take into consideration
the distributors and retailers too before reaching the end consumer. Not only
the consumers but also the distributors and retailers should be convinced
about the importance of brand.
Creating brand universe: Brands are made by a vision with strong
emotional appeal and cultural roots. They are because people believe
in them. They strive to become consumers’ passion, not only their
preference. They try to create their own universe by giving the consumers
an unforgettable experience. This is culmination of any brand. We have
examples of Starbucks, Google, Amazon, who all are creating such universe
by providing experiences to their consumers. Not only product, but they
also make available places to relax and cherish the moments.
81
Overview of Advertising 3.5.3 Brand Architecture
Whenever a brand grows, it tends to improve its portfolio by launching new
products, new brand extentions or increasing product lines. However while
doing so, it must keep it in mind that even with little variations the products
should be unique and should cater to the demand of the market, they should
not overlap each other and must exploit the opportunities of the market. All
these require good brand architecture. No brand extension should be done
arbitrarily without proper structuring and planning, otherwise it will lead to
futile exercise.
According to Aaker and Joachimsthaler  , “Brand Architecture
speci¿es the roles played by the brand, the relationship among brands and
different product-market brand contexts”. As per this de¿nition of brand
architecture, there are following two important aspects of brand architecture:
Ɣ Roles played by the brands
Ɣ Product-market context roles
Roles played by
by thee brands:
brrands: There are four roles of brands highlighted by
Keller
Kotler and Kelle
l r (2
le (2006);
200 Àankers,
0066); Àa
ank
nkers, cash
ers, ash cows,
cas cow , low-end
ows w-end entry
low-
lo entrry and
nd high-end
an high-e
-end
nd
prestige.
prestigee.
Flanker
F ankerr bra
Fl brands
andsd aree tho
ds those which
osee wh hich aare
re llaunched counter
aunncheed too coun nter tthe competitive
he co ompeetitivee
brands
a ds aand
bran
an simultaneously
nd sim
i ul protecting
u taneeousslyy prot the
otectiing th he ccore brand
oree bran nd in retaining
n reetainning iits position
ts po
osittionn
in the market.
he m Wee hav
arkett. W have
ve eexample
xamp
mple of Ar
mp Ariel
A and
ieel annd SSurf
urf aass stiff co
competitors.
ompetitorrs. W When
hen
Ariel was
Arriel w launched
as la
aun
u chc ed bbyy P & G it sstarted giving
tarteed gi competition
iviing toughh compet tit Surf,
itiion to Surf f,
then
th Surf
hen Sur launched
urf lauunchched
h Surf Ul Ultra directly
ltrra to direc
ectl
ec tly counter Ariel.
Cash
Caash Cows
Cows aree those bbrands
rand
ra ndss wh
nd which
whic ch do notot nneed
eedd mu
ee muchch iinvestment
n es
nv estm
tmen
tment be
en because
eca
caususee
us
they
hey hhave
th bbrand
ave br consumers,
andd loyal co
cons sum erss, sso
umer
er parent
o the pa
pare nt bbrand
rent
re rannd ccan
ra an iinvest
est in oother
nves
nv es ther
the
er
brands while
br ds whi taking
ile tak
aking adva
ak advantage
vaant
n ag o ccash
age of cows.
ashh cows
as w.
In bbrand
ra pportfolio,
rand ortfollio, there are low-end entry and high-end prestige brands
which
whic
wh aaree low-
i h ar low-priced
-priced aand
nd hhigh-priced
ig
gh- ed bbrands
h-ppriced r nd
ra respectively.
ndss re
resp
speccti
sp tive
vely
ve ly.. Th
ly ey pprovide
They rovi
ro v de
a widede range too the pa parent
arent bbrandnd pportfolio.
rand
ra ortfoolio
ort io.. T
io The
hee lo
low
w prpriced
pric
iced
ic ed bbrand
rand
ra nd ccan
n bbee
an
used
ussed to attract th
tthee cons
consumers
sum
umeers
ers and once
and on
oncce the
ce they are
heyy ar
he hooked,
re ho
hook
okeed,
ok other
ed ot
othe
herr hi
he high priced
gh priice
ced
products could d also be sold to them. We have example of Mc Donald’s
burger in Rs 20, which highlights it by the tag line ‘Aapkejamane me,
baapkejamanekedaam’. However it has high priced items also in its menu.
Product-market context roles: There are four types of roles explained by
Aaker and Joachimsthaler ) in product-market context; endorser and
sub-brand roles, bene¿t brands, co-brands and driver roles.
The endorser and sub-brand roles are also called Àexible umbrella parent
brands where the point of reference is the parent brand and other sub-brands
are endorsed and launched to improve the brand portfolio. For example,
we have P & G which is an umbrella brand with sub-brands; Ariel, Tide,
Pampers etc.
%HQH¿WEUDQGV are those which offer some bene¿ts to the customer with
the products e.g. if Lakme offers its nail paint with its Colossal Kajal, then
it would be called bene¿t brand.
Co-brands are those which collaborate with each other to offer the consumer
bene¿t of other one. These could be two different brands or two brands of
82
same organisation. For example if a restaurant provides huge discount on Strategic Planning and Brand
the use of SBI platinum cards then these two are said to be co-brands. Management

The driver roles are assigned to those brands which are known by their
single name and brand value not by their sub-brands such as LIC or ICICI
bank.
There are WZRFODVVL¿FDWLRQVRIEUDQGDUFKLWHFWXUH±+RXVHRI%UDQGV
and Branded House. As it is obvious from the name ‘house of brands’
means various brands or services are brought together under a single brand
yet they are separately equal to a brand. We have example of Procter and
Gamble which itself is a big brand yet under its aegis there are separate
products which are themselves like brands such as Ariel, Pampers, and Tide
etc.
On the other side ‘branded house’ has a dominance of the parent brand
which overshadows all its sub-brands. In this category we have example of
Tata group. It offers a number of products and services but all of them are
dominated by the brand name ‘Tata’. WhetherWhetheer it iss Ta
Tata
t Salt, Tata Tea, Tata
Consultancy Services, Tata Nano; they don’t hhave separate
avee sep
parate identities other
than the brand namname classic
me Tata. This is a clas
assi eexample
sicc ex amplee of bbranded
am e hhouse.
randded o se
ou se.. It ccan
an
n
be shown
wnn iin table
n thee tabl 33.1
ble 3. bbelow:
1 be low:
House
ouse off brands
Ho bra
rand
n s
nd Branded
ndeed house
Bran hou
use
Product-brand
Produc
uct-bbrand
br d Source
c bbrand
Sourrce randd
Line brand
Linne bra
and
Range brand
Raange bran
and
an
Maker’s
Maker’s mark
m rk
mar
Endorsing
En
ndo ing brand
d rsin braand
Flexible
ible uumbrella
F exib
Fl ib mbre
reell
llaa br
brand Masterbrand
Ma
asterbr
b and
Table
Tabl
Ta ‘House
blle 3.11 ‘H use ooff br
Hou bbrands’
andds’ orr ‘‘branded
ran
an house’
brandded hous (Kapferer,
u e’ (Ka pferrer, 2008)
apf 2008
20 08))
08
3.5.4
3 5.44 Case
3. asee Studies
Cas S udies
St
There
eree are
Ther a e many case studie
ar studies
es where
w ere we can see
wh e how strategically the brands
ee
improved d ttheir
ir pportfolio
heir
he ortf
or tfol
olio
io and gained pro¿st. Two of them are presented here.
Case I : BMW and Louis Vuitton
In ¿rst glance these two brands do not look closer to each other. But they
are. These two brands, one car manufacturer and one designer must have
something common or complementary to get bene¿ted from each other.
That commonness is the business of travel – car manufacturer BMW and
luggage lines of Louis Vuitton. Both are traditionally established luxury
brands with high credibility and craftsmanship. This makes their co-
branding strategically possible.
As part of this strategy, BMW created a sports car BMW i8 for which Louis
Vuitton designed an exclusive set of four pieces of suitcase and bags which
could perfectly ¿t into the car’s rear shelf. This was such a complementary
strategy in terms of price, design, quality and of course branding that the
customers welcomed it overwhelmingly and both the brands earned huge
pro¿t out of it. 9erma, 5.  .
83
Overview of Advertising Case II : Levi’s and Google
Innovation is the key to success. Who’d guess that the denim brand Levi’s
would anyhow have collaborated with the biggest search engine Google!
But when they did team up, it was unique and unthinkable.
Levi’s entered the wearable technology ¿eld with Google. It designed a
denim jacket which is interactive. Made for the cyclist, who can’t answer
phone calls while riding, this jacket allowed them to respond while riding
without stopping themselves. It was code-named as Project Jacquard,
which allows the commuters to answer their calls by only lightly tapping or
swiping a sleeve on their jacket. They can easily access a map or switch on
or change the music while riding without any danger. It is unarguably very
innovative. Johnson K,  .
Check Your Progress 4.
Note: 1) Use the space below for you answers.
2) Comp
m are your answers with those given at the end of this unit.
Compare
1. Why strate
t gic pl
te
strategic pplanning
an
nning is required for branding"
...
..............
...................................................................
. .........................
. .............
..
..............................................................................................................
...
...............................................................................................
........
.....................
..............................................................................................................
...
........................................................................................................................
..............................................................................................................
2. W hat are
What are ‘Àan
nker brands’
‘Àanker braandss’ and
and ‘cash
‘caash cows’"
cow
ws’"
................................... ....
. ..
. ..........
. ..............................................................
..............................................................................................................
...............................................................................................................
......................................................
............................................................
...............................................................................................................
................................................................................................................
3. Wh
W
Whatat is the dif
iffe
feerenc
nce be
nc
difference bettweeen ‘h
between ‘hou
use off br
‘house bran
nds’
ds an
brands’ nd ‘bra
and anded
ed
d
‘branded
hhouse’"
ousee’"
....... ..........
. ..............................................................................................
..............................................................................................................
.... .............
. ..............................................................................................................
..............................................................................................................
..................
. ..................................................................................................................
..............................................................................................................

33.6
.66 DIGITAL
DIGITA
TAL BRANDING
BR
RANDING
This is an era of internet and ‘fourth screen’ which means smart phones
phones.
No doubt, the most sellable camera today is not Nikon and Canon rather
it is One Plus or Apple. In such scenario how can one ignore the digital
platform of branding! It has features which are user friendly, involving
and interesting, so more and more people are seeking information easily
online. One can access all kinds of information(s) all the time at a click and
interactivity adds a new dimension to this access. Almost all the companies
are going online at a very low cost just to tap the online audiences.
These days internet is the most preferred destination for promotional
activities. First step in this direction is to create a website with all round
information about the organisation and its services so that if the consumers
seek any information it should be readily available to them. Then second step
should be placing the advertisements online to reach to maximum numbers
of netizens. This is the time of personalised information, so the use of
personal emails cannot be ruled out and the consumers can be approached
on their personal emails. More than e mails, the young generations are
84
found perennially on social networking sites, so creating Facebook pages or Strategic Planning and Brand
Twitter handles or Instagram accounts can also done to harness the power of Management
this omnipresent new media. This can sure prove to be a good strategy for
digital branding and can in no way be ignored.

3.7 LET US SUM UP

In this unit we have gone through the brands and their various aspects.
Discussing all aspects of branding from brand equity to brand positioning,
we have also learnt how to create and sustain a brand.
We looked at the most important part of brand understanding i.e. brand
management and its theories and models. The challenges in managing
the brand have also been discussed in this unit and the importance of line
extension and brand extension has been highlighted. Two case studies
related to the topic have been dealt with.
It is also explained
p whyy branding g needs to be strategic g and how we
direction.
should proceed strategically in this direction n. Thee rorole of the market and
been
designing strategy according to the market hass alsoo bee en mentioned. A brief
introduction of brand architecture andd ddigital
ital bbranding
igit
ig randdin aalso
ingg has al so bbeen
eenn give
ee given.
veen.
summing
In sumummming it up, yyou must
ou muust remember
s rememb ber th that
hat tthe
he bbrands
ranndss aree fo term
forr longg te
erm
bene¿t
bene
ne¿t
ne ¿ and nd once
onc they
nce thhey hhave
av
ve made their
maad thei place
ir pla the
ace in thhe m market, nothing
arrket,, noth could
hing coould
more
be mor ore re
or rewarding them
ewarddingg than the
hem enjoying
m ennjo that
j yinng th well
hat we
w crated
ll crat sustained
tedd outt andd susstainned
pposition.
osiiti
t onn.

3.8
3.
.8 CH
CHECK
HEC
CK YOUR
YOUR
R PROGRESS:
PRO
OGR
RESS:: POSSIBLE
POSSIBLE
E ANSWERS
AN
NSWERS
Check
Ch
heck Your
Yo r Progress
Progress 11..
1. A name, e, term, ssign,
i n, ssymbol,
ig ymmbol, l or dde
l, esignn, or a ccombination
design, o bi
om b naatiion ooff them
e ,
em
them,
iintended
in tend
te n edd tto
o id
dentify
identifyfy the
he goooodds or servic
oo
goods i es of one seller or group of
services
seell
lleers
er and
sellers an
nd too ddifferentiate
iffe
iffere
rent
re n iate
tee tthem
hem fr
ffrom
om tho
h se of co
those commpet
mpet
e it
itoors.
competitors.
2. T e term br
Th
The bbrand
and eq quity
uiity iiss cu
equity ust
s omer’s rresponse
customer’s esponsse tooward
ward
rdss br
towards braan T
and.
brand. he
The
sttreeng
ngth
strengthth ooff a brbran
andd depends
an
brand depe
pend
pe nds upon how
how much
mucuchh its
uc its customers
cus om
cust omeers are
arre
aattached
at tached to it. Wherea
Whereas as bbrand
rand image is hhow
ow a consumer perceives the
brandd whwhicichh is bbasically
which asic
i ally a qualitative perception, the brand equity is
the capability of the brand to invoke speci¿c thoughts, feelings and
attachment towards the brand which inÀuence the behaviour of the
consumers and can be quanti¿ed as well. It de¿nes the relation of a
customer with a brand.
3. There are certain brands which are undoubtedly not necessary but just
to show a class, the customers’ desire to make their presence unique.
These are of very high quality, expensive, unique and creative. These
are called luxury brands; such as Mercedes, Gucci, Versace, Rolls
Royce etc.
Check Your Progress 2.
1. Can’t.
2. Brand identity.
3. Brand extension.

85
Overview of Advertising Check Your Progress 3.
1. Branding increases the value of a product from mere a physical good
to an emotional, status symbol and credible good. It is more into
the mind of the consumer than existing physically. It takes a long
sustained effort to create and sustain a brand and that’s why brand
management is required. Once a brand image and its identity is
created, proper planning and management procedure is required to
maintain that image and identity of the brand.
2. Fragmented market
1. Fragmented media
2. Technology driven audiences
3. Shopaholic crowd
3. When there is a product is extended with little variation in the same
product category, it is line extension whereas when the same brand
launches a completely different product with same brand name but in
pproduct
different pr oduuct ccategory,
ategory, it is called brand extension.
Check Yo ur Progress:
Your Pro
r gres
ro ess:
s: 4
1. Brandss di differentiate
iffereentiaatee samem pro
me products
rooduccts of ddifferent
i feerent ccompanies
if om niess ffrom
mpaani m eeach
rom achh
other.
ot ther. TThey
heey make ea each
ach pproduct
roduuct uunique.
niq Only
que.. Onl brands
ly br make
rannds ma
m ke a pr product
rodductt
more
m ore tthan physical
hann a phhysiical entity
nttityy aand
al ent thus
nd thu make
us m ake them m iincomparable.
ncom
o paarablee. T
om This
hiss
possible
iss poss only
siblle onl strategic
ly byy st traategic plpplanning;
nninng; ootherwise
an therw one
wisee on pproduct
ne pr oductt ccan’t
an’’t be
b
differentiated
differe
di a ed ffrom
entiat rom ot other.
othe
her.
r
r.
2. Flanker
Flankeer br
Fl bbrands
rands are those
thoose which
which
chh are
are launched to counter the competitive
brandss and
br simultaneously
n simul ulta
ul tane
ta neou
ne protecting
o slly pr
prot
otec
ot e tiing tthe
he ccore brand
oree br
or andd in rretaining
bran
an etainiing iits
et ts
position
positio
po on iin market.
n the ma et. Cash
arket
et C sh Cows
Ca Cowss are
are those
tho se brands
hose ndss which
brand
nd whic
wh ich doo not
ic not
nneed much
eed muc investment
ch investmem nt becbecause
ecau
ec se tthey
ause
au heyy havee bbrand
rand
ra nd lloyal
oyal
oy consumers,
al consu
sume
su mers
me rs, so
rs
the parent
nt brand can invest in other brands while taking advantage of
parent
cash
ash cows.
ca cowws.
33.. Ass it is obvious
A obviouss from
froom thehe name
th name
m ‘ho‘house
houusee of brands’
ho brandnds’
nd s’ means
meae ns various
variiouus
services
es aare
brands orr service re bbrought
ro
oug together
ughht to
oget
ethe
et under
heer un derr a ssingle
unde
de ing
ngle
ng le bbrand
rand
ra yet
et tthey
nd ye hey
he
separately
are separa
r tely equal to a brand. Other side ‘branded house’ has a
ra
dominance of the parent brand which overshadows all its sub-brands.

3.9 FURTHER READINGS

Ɣ Kapferer J N. (2008), The New 6trategic Brand 0anagement, Kogan
Page: London
Ɣ Belch & Belch (2003), Advertising and Promotion An Integrated
0arketing Communication Perspective, The Mc-Graw Hills
Companies
Ɣ Kotler P. (2002), 0arketing, 0anagement, 0illennium (dition,
Pearson Custom Publishing: New Jersey

3.10 GLOSSARY
Brand Culture: Strong brands are managed by organisations characterized
by their strong internal brand cultures. A strong brand culture is determined
by the internal attitudes towards branding, management behaviour and
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practices of an organisation. These combined efforts are crucial to build Strategic Planning and Brand
and maintain strong brand equity through competitive advantages from Management
branding. The most prominent person to lead these efforts is the CEO and
the senior management team.
Brand Equity Strategy: An organisation wants to build and maintain
strong brand equity for the respective brands in their portfolio including
the corporate brand. The brand equity strategy serves as a guide for these
marketing efforts and illustrates the plans and tactics needed to meet the
brand objectives.
Brand Expansion: The exposure of a brand to a broader target customer
market, geographic market, or distribution channels.
Brand Mapping: Brand mapping is a research technique to identify and
visualize the core positioning of a brand compared to competing brands on
various dimensions.
Brand Power: A measure of the ability of the brand to dominate its product
category.
Brand Value Proposition: The functional, em emotional,
motio nall, and sself-expressive
iona elf-ex
el xpr
pressiive
bene¿ts de delivered
deli
livvere b tthe
redd by he bbrand combined
rand that commbinned pprovide
roviide vvalue
alue tthee cus
ue to th customer.
stom
mer.
The brbbrand vvalue
and va propositions
luee prop
lu opos
o itions
os nss pprovide
rovide the rrationale
atio (tangible
onalee (taanggiblee andd iintangible
ntaangiible
dimensions
dim
di menssio ns aand
ions nd associations)
asssociati ons) ffor
tiion o making
or makingg onoonee brand
bran nd choice
oice oover
choi verr other
otther
aavailable
v laablee bbrand
availa ran choices.
nd ch
cho
oices.

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