Introduction to Brand Management UNIT -1: Introduction to Brand Management wr CHAPTER Introduction to Brand 1 Management In this chapter: Introduction to Brand Management Meaning of Brand Branding Brand Management Brand vis Products Importance of Brands to Consumers Importance of Brands to Firms ‘Scope of Branding Branding Challenges and Opportunities Brand Building Process VvvvvvvvVVV Objective Questions with Answers Question Bank for Self-Practice sekrand vision Bften emphasizes the b e now credible an‘ emerge OF as d deliverable capabifties and programs change, the _positionin; The centrepiece of the g message might evolve position often is a tagline Rinicated externally that need not and usually does not Mt) the brand essence, which is an internally tions with Model Answers (1) Choose the correct answer from the given options: (a) A challenge in marketing of services is that they ar (tangible, intangible, physical) (b) Brand proliferation is the __ of brand extension. (same, opposite, extension)nvodction to Brand Management (@) Brands give an indication to the firm Reetetnreitynecun. (cervice, product, qualty) Some __which have become w So a Serre bese weno bands we (celebrities, sportsperson, organizations) Brand names can be registered and this gives Tights to the firm to take action against any competitor who mmisuses the brand name (legal, moral, consumer) (When the company’s brands compete among themselves, the phenomenon is known as brand (management, cannibalization,protle) @ “she act of creating a brand. (Apri 19) (Granding, Brand management, Grand building, Brand hierarchy) Ans. (a) intangible, (2) opposite, (c) quality, (8) organisation {6) legal, () cannibalization, (9) branding] {@ State whether the following statements are True or False {@), Brands aids in distinguishing the goods of one producer from that of another {f)_ in brand extension, now toms are added using diferent brand to orartana eaveral products are offered by the company using Siferent brand names. (c) Advertisers, marketers and media planners in the past had fnly tow clearly defined channe's to choose from where Aigfaltechcogles have broken modi nto numerous niches, channels and segments today: CGaogrephic locations tke people and ogarizations cannot De branded. (©) On Branded produc, tne name of manuiactur |S mentioned. I) pe of the fay factors 10 Do kept in mind wile cesing © Drona is giving the product an identity. (a) Abrand provides distinct identity to 2 proc (April 19) {Ans.: (a True), (0 False), (6 — True), (4 - Fie (True), (a= Tre) F6s Ter vipu's™ Brond Manogement (svete B (1) Explain the difference between a product and a brand. (April 17) {@) ‘Brands ere very important to consumers.’ Justy this statement with reasons. (3) What is branding? Explain the scope of branding (8) Why Is branding important for a trn? — (6) Describe the various brand challenges and opportunities. Give In this ‘examples to substantiate your answer ee (6) Explain the following: brand, branding and brand management) . “Throw light on the importance of brand to the firm and consumers. (@) What is brand building? Explain the steps in brand building * Sou Cust process. (April 17) me (8) ‘Brands are very important to consumers.’ Justify this statemen! with reasons. (April 16) @t (9) Distinguish between Brand versus Product. (April 19) > oni (10) Define Branding? Explain the importance of branding to consumers with example. (Apri 19) Be orsnes =Vipet's _INTRODUC JON TO BRAND MANAGEMENT and id brand is a name, term them, intended group of sellers and ditte The key factors in crea @) Choosingsnogement (BMS) ome : that consumers connect with, by fie: From the [pdenifying the name, logo, slogan, or design of the company who he coffee they JB owns the * image. Branding is when that idea or image is He, peop ae fp nurketed 0 at its recognizable by more and mere people Sececcrom are antenifed with a certain servic or product when there are rare vetine aaa ther companies offering the same service or product anding allows companies to pees aoe {ving in an age, Bandins P sted. expand beyond the d add t mes important Ts managements he Wand is perceived in n distinguishing Ir ataonship wi ation (AMA), “A IB ee Product itself ‘combination of JB clements are the expe sof one seller of JJ brand, and also the rela ‘of competitor” brand manager has to brand. » product L BRAND v/s PRODUCTS. Itis important to understand the ¢ and a product. According to Philip Kotler, A that can be offered to a market for attention, ‘consumption that may satisfy a need or want. tp what we have A brand is a product, but one that add: or image of a ff ‘ierentiate it in some way from the other Satisfy the same need. For e.g. Chocolate is P?‘ vw vie ™ Brand Managemen (Aa create brands which create value for the product and translate it" eae market for attention, | ora combination of them, in) acquisition, use, or intended to identify the consumption that may | goods and services of one need orwant | seller or group of sellers an diferent them @) Foes |Aprdutiorseonte [atrancfeuesontoe | st customer's need ‘customer's want B . copied det RE rete paternese otters vate. |e wee AA product is made by a company and can be Brands are built through consumer perceptions Purchased by a consumer | expectations: aid experiences 1 fol Ide Lim Ass B proc ene simp whic Thus Bran: relati it, Hefoment M9) I sn rand Mane ishes itself IMPORTANCE OF BRANDS TO CONSUMERS _| srands are important to consumers in varioiis ways. They are marketers palaay i 3s allows: translate it t i) Identification of the maker of the product: On branded products, the name of the manufacturer of the product is mentioned. It helps customers know from wheré the product ig produced. Many customers make the buying decision on the Bass of the name of the manufacturer. For e.g, consumers FPR ak ary product at ude by Hindustan Unilever as Limited (HUL). \onof hema) Assignment of responsibilty to the maker of the product deny the vices of one ‘potsellers Covel Brands make it possible to pinpoint the responsibility on the producer/manufacturer of the product. If the customer has any complaint he knows who to get in touch with. Fi rther it “enhances the responsibility of the maker of the product and constantly reminds them to keep the customer's interest in mind, Simplify product decisions: Consumers learn about brands from various sources. They are able to make decisions about Which brand to buy based on their knowledge of brands. ‘Thus brands simplify buying decisions for the consumers. Brands create relationship with customers: Brands share a relationship of trust with customers. Customers expect brands to provide them consistent product/service. If ‘customers are satisfied with the brand they continue buying. it. Hence marketers have to work hard to maintain a good relationship with customers.‘ coo Vigul’s™ Brond Menogement (product () Brands act as symbolic devices: Brands allow people 42) Le project their self-image They act as symbolic devices. TY uni products that people use help them project their image tog reg ‘outside world. For e.g. Consumers who use iPhone consid) aga themselves elite. pro (6) Indicators of quality: Brands indicate the kind of qua 74 ‘of the product the consumer is buying. They guarani{3) Lev: ‘@ consistent quality to the customer. Buying a brandy the! Product means the customer is guaranteed a consiste help quality. Prod (7) Reduce risk: When consumers buy well known produd#) Com; especially those brands with which the consumer has had) ©O™'P Favourable past experience, it reduces the risk of buying 1) PPOdt ‘The risk may be a financial risk where the consumer feels 45) Sourc: Product is not Value for money. the fi Brands are very important to consumers and they play avg “hareh fle in ther lives. They cocupy a unique position in their ing__ “82%! Besnds have become important to consumers in today's tol because of their hectic lifestyle. The sco << tti(iszt IMPORTANCE OF BRANDS TO FIRMS branding en \____IMPORTANCE OF BRANDS TO FikMS Brands provide valuable services to firm. They are asfolows}? Physica Some pi Pantene distinguito Brand Management vor 7 Legal protection: Brands offer legal protection to the firm for unique featuresof the -product.Brandnames_can_be registered and this gives legat rights to the firm totake-action against any competitor who misuses the brand name. Legal protection ensures that the firm can invest in creating a brand and reap benefits as the brand becomes popular, ) Level of quality: Brands give an indication to the firm about the level of quality that is required by the customers. Brands help firms ensure that customers regularly get good quality products. ) Competitive advantage: Brands help firms secure a competitive advantage, which helps them distinguish their product from the competitor.. Customers like buying products which have a well-defined differentiatior ) Sources of financial returns: Strong brands create profit for the firm which in_tum_creates_greater_value_for_the shareholdersFhus a strong brand is profitable for the organisation. SCOPE OF BRANDING The scope of branding is indeed very vast. The scope o} randing encompasses the following: Physical Goods: Physical’ goods include tangible products. ‘Some prominent tangible products are Pepsi, Dove, Dettol Pantene etc. Product differentiation is important tc distinguish one brand from the other.. owe Vipue™ Brand Monogeren @) Services: Service brands have become very competitive today’s times. Some of the well-known service brands Vodafone, Pizza Hut, Citibank, HDFC Life —Inssxand Pantaloons, Air India etc. A challenge in marketing se that they are intangible and quality varies-according to Person_providing. the service.Branding of services | important as it helps consumers to distinguish one servi from another. Branding has even become important. financial services, to aid the consumer understand differe financial offerings. (9) Retailers and Distributors: To the retailers and oth members of the distribution channels, brands provide | number of functions. Brands generate consumer intere Jevalty for the store; expect a certain level of service at ‘quality of products from a retalleg Brands play a pivotal nl in creating an image for the store. (@) Online Products and Services: Online products and ser also need to create brands which are memorable | consumers. With the intensification of competition making the right product available to the consumer at Tight time becomes the need of the hour, a x © People and Organizations: People and organizations also become brands.today. Some organizations which become well-known brands are > Sony, Mic BMW etc, ities, widesy impera BRA Bran comes getting and opp @ Kne kno varie socie from brani const toe f @) Bran wem ca Fee °} new i severa brand brandreduction to Brond Management roe 9 “(6 Geographic Locations: Geographic locations like people and organizations can also be branded. Tourism industry has contributed to the growth of branding of places. Some examples are Dubai is famous for its shopping festival, Kerala is renowned for Ayurveda, Goa is famous for its beaches etc ‘Thus it can be seen that the scope of branding in indeed widespread. Branding is needed in every phase of life. It is imperative for organizations and entrepreneurs. BRANDING CHALLENGES AND OPPORTUNITIES Branding is important to attract the consumer, however it ‘comes with various challenges and opportunities as the market is getting complicated and competitive. The branding challenges and opportunities are: (@) Knowledgeable Customers: The consumer has become more knowledgeable and_is_well informed. The consumer has vations platforms where they can voice their opinion Tike social media, websites etc. Further what consumers want from a product is changing constantly. To be successful, brands must be able to establish a connection with the PROL er Oued (@) Brand Proliferation: To understand brand proliferation, first 0 we must understand brand extension. Brand proliferation is 02” ine opposite of brand extension. While in brand extension, new items are added using an existing brand name and several products are offered under the same brand name, in brand proliferation, more items are brought in with new brand names. In other words, the firm has several brands inver Viput’s™ Brand Management (BMS) the same product/product category. It means that the list of independent brands goes up. For instance, HUL offers various soaps in the Indian market like Dove, Lifebuoy, ‘Hamam, Breeze, Liril, Lux, Pears and Rexona. Brand proliferation can help expand the market as well as the company’s mark in the category. It can also increase the company’s influence atthe retail level by offering variety. New brands also generate excitement for the sales team of the company; however, there are also many pitfalls in brand proliferation. More brands from a company’s stable enhance competition in the market. It also paves the way for the company’s brands to compete among themselves, a phenomenon asbrandeannibalization, =) woluece, ta Bsa ge, he strategically, the best ‘way of minimizing cannibalization. If different brands are designed to deliver different benefits to different segments of markets, it can restrict competition completely is often but one has to be sure Introduction brok toda Ir broa simp with and simp audi social conte audie servic televis viewit and n contro The chan readin the W, and th smartp audien Pinterereduction t Brond Management rae " broken media into numerous niches, channels and segments today. In the past, we used mass media such as print and ‘broadcast to reach the audience~The costing models were simple and the media was used to communicate one-to-many with the audience. Now, however, the market has fragmented ‘and the marketer can no longer assume that they are simply broadcasting messages to @ largely passive, mass audience. ‘This is especially apparent on digital channels ~ especially social media - where conversation and personalization of content are becoming increasingly important and where fqudiences are scattered across numerous social _media services and niche portals. (A Twitter account and a Web site are as important 25 2 television commercial today. The audience today might be viewing contents on channels such as YouTube or Facebook and not just television. Fragmentation means some loss of contol and visibility fr traditional publishers “The audience's attention is fragmented across multiple channels. People watch television with one eye while (hey 226 reading a news story on their tablet computers, they Prow's® the Web at work with the radio playing in the background and they hop between different social media apP* °° their smartphones. Even when we talk about social media, the audience is fragmented across Facebook, Instagra" Twitter, Pinterest, and others.2 ger \Vipul's™ Brand Manogement (BMs) soar Media fragmentation has created a range of new challenges and opportunities for brands and agencies Though managing a fragmented audience is a daunting task, managing @ range of channels can be expensive and complex, it also opens up opportunities to_build more > — ‘meaningful and personalized relationships between brands gE eres 4 (4) Increased Competition: Promotion schemes are used Br extensively, as the market place has become very competitive. | *** New competitors are emerging in the market place due to | “P# fea 4. : : jon, | othe globalization, deregulation of the market and privatization oe ultin i There is also a tremendous increase in low-priced competitors, who are imitating market leaders and providing | PT°8 the product at reasonable prices. Retailers haves become | 7 Ste powerful and they are launching their own private labels | w which increases the level of competition. () Increased Cost: With the rise in competition, the cost of | TS0" introducing new products is increasing rapidly. Further, | Parn offering free trials and samples to consumers to promote | MS! the product add to the cost. Increased promotion expenses | °°8™ done’ to create brand awareness, increases the budgeted | le and it ) busir (©) Accountability: Marketers have to be more accountable w | 2 © ‘consumers for the products/services they offer to them. Ts | t1 the marketer cannot only focus on term profits; he also | °F Ph has to look at long term gains, Long term gains can only come | 28° to the marketer if they offer qual ste tecnnaaag odtroduction t Brand Management vor 7 A branding challenge can be converted to a branding opportunity depending on the ability of the marketer. With changing times, the marketer has to be agile and able to adapt to the changing environment. BRANDBUILDING PROCESS | ‘According to David Aaker, the creator of the Aaker Model™ Brand Building starts with a brand vision. You absolutely need an articulated description of the aspirational image for the brand what you want the brand to stand for in the eyes of customers and lother relevant groups, such as employees and partners. It ultimately drives the brand building component of the marketing program and greatly influences the rest. 7 Steps for Better Brand Building: When the brand vision clicks, it will reflect and support the bpusiness strategy, differentiate the brand from competitors, resonate with customers, energize and inspire employees and pariners, precipitate a gush of brand-building ideas, and generate consistent, “on-brand” brand building over offerings and segments. When absent or superficial, the brand will drift imlessly, and marketing programs are likely to be inconsistent and ineffective. (@) Determine the Core Vision Elements of a Brand: Itmay be based on six to 12 vision elements. A single thought or phrase cannot define most brands, and the quest to find this magic brand concept can be fruitless or, worse, can leave the brand with an incomplete vision missing some relevant clements Fe ce ricci into the to to five that are the; rr Vipaite™ Brand Managemen gg most compelling and differentiating, termed the “core vig jn, clements;” while the others are labelled “extended visi jose 5 elements.” a The core elements will reflect the value propositions ed itis BAPKE forward, and drive the brand-building programs and initiatiy, a For the brand HUL (Hindustan Unilever Ltd.) the core elements, "8 their vision is Sustainable growth and an intense sense of Sac (4) Purpose. Ii (2) Identify Extended Brand Vision Elements: forwar often, Extended brand vision elements add texture to the bran a vision, allowing most strategists to make better judgments ast ated Whether a program is “on brand.” The extended vision affords; jee! home for important aspects of the brand, such as a brav peel Personality, that may not merit being a core vision element, aaa for elements, such as high quality, that are crucial for success ee may not be a basis for differentiation. ead An extended vision element sometimes evolves into a ie element, and without staying visible throughout the process oy ‘would not happen, Partners 9) Develop a Brand Vision Model: The are tim A brand vision model is not a “one size fits all, fil in the model with pre-specified dimensions, Ror are brands exclud#) Omitted. from using a dimension that lacks a “be ox." Rather, the dimensi] (6) qa, are selected that are relevant for the context at hand- Havin contexts vary. Organizational values and Programs are likely) products important for service and B-to-B firms but not for Package goods, for example.avoduction to Brand Management Innovation is likely to be important for high-tech brands but ess 50 for some packaged goods brands. Personality often is more portant for durables and less so for corporate brands. The Ljimensions that are employed will be 2 function of the arketplace, the strategy, the competition, the customers, the organization and the brand. I) Expand on the Brand Vision: It is the associations that the brand needs to have going forward, given its current and future business strategy. To lften, a brand executive feels constrained and uncomfortable going beyond what the brand currently has permission f0 do. Wet most brands need to improve on some dimensions to compete, and add new dimensions in order to create new growth platforms. A brand that has plans to extend {0 2 nev! eategory, for example, probably will need to go beyond the ‘current image. (©) Find the Right Brand Essence: When the right brand essence is found, it can be magic in terms ©f intemal communication, inspiration for employees and partners, and guiding programs. ‘The essence always should be sought. However, there fie times qhen it actually gets in the way and is better omitted. (6) Adaptto the Brand Vision: Having the same brand vision in all of Your brand's Pet eee eirtexis is elegant and, convenient, Put notower Vipul’s™ Brond Management (yy 16 feasible in today’s complex marketplace. The goal should jy creating strong brands everywhere, not the same bran everywhere. Managers need flexibility to adapt the brand tothe context while still avoiding programs that are inconsistent wig the vision. ‘The brand vision can be adapted in several ways. Thos employing the brand in different brand contexts can emphasiy different elements of the brand vision, can interpret visi ‘elements such as quality or innovation differently, or can augmey the vision with additional elements. ()_ Evolve the Brand Position: The current positioning often emphasizes the brand vis elements that will appeal and are now credible and deliverabk Inve « Ll fe As organizational capabilities and programs emerge of (9) markets change, the positioning message might exch or change, The centrepiece of the position often is a tagis, communicated extemally that need not and usually does correspond to the brand essence, which is an i ‘communicated concept. Objective Questions with Model Answers a) Choose the eérrect answer from the given oy jons: (@) A challenge in marketing of services is that they (Cangibe, intangible, physical (b) Brand proliferation is the of brand extension (same, opposite, extension) aaa (@ (e) (e) @ © “ @) [Ans (1