Unit 1

Understanding Brand
 Topics of the Session

• What is a Brand?

• Product vs. Brand

• Why Branding?-Brand Role and Relevance

2
 The status dilemma
 Neha is a working woman, and she needs a lunch box to carry to office.

 She remembers her father leaving for work every morning clutching his
colourless stainless steel lunch box.

 But Neha shudders to even visualize the look on her colleagues‘ faces if she
walks into office with such a lunch box.

 Neha has a number of options available in the market to choose from, but she
needs bright trendy containers, which can keep the food fresh for longer
periods of time.

3
 Brand to the Rescue
 Neha found exactly what she was looking for when her friend Meena brought her
lunch box to office one day.

 Meena told her about Tupperware—a global brand, recognized the world over.

 Tupperware products were excellently designed and had won prestigious awards like
the Red Dot award in 2009 (an award for excellence in product design instituted by
Design Zentrum Nordrhein Westfalen in Essen, Germany), and the company was
also featured in ‗Forbes.com Platinum 400—America‘s Best Big Companies List‘ for
the sixth time in a row in 2009.

 Tupperware had ‗a range of high quality, lightweight, rust- and break-proof,

colourful, airtight, stylish containers, which kept food fresh for longer, thus avoiding
waste‘ (Superbrands 2009).

 They were leak-proof as well, which meant that Neha could carry and store curry and
gravy items.
4
 Concept of Branding

For the consumers, a brand is a product.

But for the maker or the seller, a brand is an identifier of its goods
and services and a promise of consistently delivering the
features/benefits that the consumers desire from the brand.

5
 Introduction
It escalated its position to
It has made a conscious
effort to manage become the number one
brand in several markets
consumer perceptions of
its brand. around the world.
Apple has succeeded by
putting across the human
face technology-taking and
dominating the emotional
high ground.

Technology

Apple Inc, a These efforts of creating Apple has successfully Thus, you can see that a
American manufacturer of a ‗brand‘ image in the built a corporate brand strong brand leaves an
mobile phones, has been customer‘s minds paid that associates ‗trust‘ imprint on the
steadily and consistently off for Apple. and ‗strong technology‘ customer‘s minds. Let
working on its corporate with the word ‗Apple‘. us understand more
brand name over the about brands and brand
years. management.
 What is a Brand?

• A brand can be a person, place, firm, or organization.

7
 What is a Brand?
• According to the American Marketing Association (AMA), a brand is a ―name,
term, sign, symbol, or design, or a combination of them, intended to identify
the goods and services of one seller or group of sellers and to differentiate
them from those of competition.‖

• Whenever a marketer develops a new identity in the form of name, logo, or

symbol for a new product or service, he or she has indirectly designed a
brand.

• Marketers can push building a brand in the eyes of the buyers virtually
anywhere the buyer has a choice.
 What is a Brand?
Apple brand promises ‘trust’ and ‘strong technology’

The popular Starbucks has earned its brand image from the opinions of its
customers.
The brand Starbucks stands for bolder, more flavorful coffee.

Thus, you can see that Brands are “what the consumers buy”, while products
are “what concern/companies make”.

Brand is a promise that the product will perform as per customer’s expectations.

It is a name, term, sign, symbol or a combination of all these which

differentiate the goods/services of one seller or group of sellers from those of
competitors.

Some examples of well known brands are Wrangler, Audi, Samsung, Coca Cola, etc.
What can be Branded?
What can be Branded?
Gillette as a Strong Brand

Gillette’s tagline, 'The Best A Man Can Get’,

showcased in its ads through the years has created a
consistent, intangible sense of product superiority.

Gillette has created a strong brand image in

totality - that is, all the different perceptions,
beliefs, attitudes and behaviors customers
associate with their brand.

To keep this strong brand presence, Gillette is very

protective of the name carried by its razors, blades
and associated toiletries. Hence, Braun is used for
the company's electric razors and its oral care
products are marketed under the name, Oral B.
Difference between a Product and a Brand

BRAND

Symbols
Brand personality

Country of origin Scope

Functional benefits Attribute

User imagery
PRODUCT
Organizational associations

Product uses
Quality/value

Emotional benefits
Brand customer
relationship

Self-expressive benefits

13
 PRODUCT vs. Brand
BASIS FOR
COMPARISO PRODUCT BRAND
N
Meaning A product is anything we can offer to a A brand is something which
market for attention, distinguishes a product from
acquisition, use, or consumption that other products in the
might satisfy a need or want market.
What is it? A product is what you need A brand is what you want
Uniqueness A product can be easily copied. A brand has a distinguished
identity, that cannot be
copied.
Marketing Focused on building a strong
Focused on product features, benefits, identity, image, and
and performance. relationship with consumers.
14
 PRODUCT vs. Brand
BASIS FOR COMPARISON PRODUCT
Example iPhone, Nike shoes, Coca-Cola
soda
What they do? A product performs the
functions.
Appearance A product may be tangible or
intangible in nature
Time Horizon A product can be outdated after
some time.
Differentiation Basis Can be categorized into five levels
namely:
• Core benefit level
• Generic product level
• Expected product level
• Augmented product level
• Potential product level
BRAND
Apple, Nike, Coca-Cola
A brand offers value
A brand is intangible
Brand remains forever.
Can be differentiated on the basis
of:
• Packaging
• Services provided
• Customer advice
• Delivery arrangements
• Warehousing
15
 Five levels of meaning for a product
The core benefit is the fundamental need or want that consumers satisfy
Potential by consuming the product or service. Ex. Air Conditioner-Cooling and
Product Level comfort

Augmented Generic product is a basic version of the product containing only those
Product Level attributes absolutely necessary for its functioning but with no
distinguishing features. Eg. Sufficient cooling capacity
Expected
product Level Expected product : It is a set of attributes that buyers normally expect
and agree to when they purchase a product. Eg. Large air conditioner
Generic
product with two cooling speeds, expandable side panels, removable air filter,
Level and a five-year warranty.
Augmented Product Level: Additional attributes , distinguishes the
product, may include electric touch-pad controls, temperature displays,
Core
benefit and automatic fan speed adjustment based on room conditions.
Level
Potential Product Level: includes all the augmentations and
transformations that a product may have in future. Eg. Future vision for
air conditioner: Advanced climate control, energy efficiency, AI, IoT
connectivity etc.
16
 Exercise

• What functional benefits do the following brands give

– Nike shoes
– Coca Cola
– Colgate toothpaste
 Exercise-Answers

Nike: great feeling of comfort, support for heels, bouncy

while running, absorb shocks and protects knees, etc.

Coke: slake my thirst, energy booster, stimulates me

Colgate : protects against cavities, cleans teeth, etc.

18
 Identify the Countries of the Brands

1. Marks & Spencer 1. United Kingdom

2. Phillips 2. Netherlands

3. Unilever 3. United Kingdom/Netherlands

4. Toyota 4. Japan

5. Wipro 5. India

6. Samsung 6. South Korea

7. Nestlé 7. Switzerland

8. Coca-Cola 8. United States

19
 Identify the Countries of the Brands

9. Siemens 9. Germany

10. Adidas 10. Germany

11. Ferrari 11. Italy

12. Amazon 12. United States

13. IKEA 13. Sweden

14. Infosys 14. India

15. HDFC Bank 15. India

20
Why Branding?

21
Importance of Branding to Consumer

22
 Importance of Branding to Consumer

• With the experience and search of

Easy decision making
information, the buyers can make
decisions swiftly and easily for
deciding about the purchase of the
brand.
• Example:

23
 Importance of Branding to Consumer
• Brands can reduce the risks in product decisions. Consumers may perceive many
different types of risks in buying and consuming a product

Functional risk: The product does not perform up to expectations.

Physical risk: The product poses a threat to the physical well-being or health of
the user or others.

Financial risk: The product is not worth the price paid.

Social risk: The product results in embarrassment from others.

Psychological risk: The product affects the mental well-being of the user.

Time risk: The failure of the product results in an opportunity cost of finding
another satisfactory product. 24
 Importance of Branding to Firms
 Identification of the Market: A brand name recognizes the market that
it serves which in turn helps in assigning the responsibilities in the
distribution phase such as warehousing, classifying selling and after sales
service.

25
 Importance of Branding to Firms
 Legal Protection: A brand name also provides legal protection for the
branded products. It does so through the copyrights, patents and
trademarks.
 Registered trademarks protects the brand name.
 Registered patents protects the manufacturing process of the firm.
 Copyright of unique designs protect packaging.

26
 Importance of Branding to Firms

 Unique Association: Associations are the effect of different feelings and

images the brand plants in the minds of the consumers.

27
 Importance of Branding to Firms

 High market share : High positive customer perception about the brand
leads to organic and elevated earnings which results in higher market share
for the organization.
 A happy customer recommends the same service which met their needs to
other contacts that help I getting more customer.

• Airpods, with a 30% of global market

domination are way ahead of the
competition, which comprises of wireless
ear buds from brands such as Samsung and
Bose

28
 Importance of Branding to Firms

 Acts as an entry barrier for the other brands: A strong brand that
meets the customers needs effectively creates a barrier to the entry of other
brands into the market. This is due to the brand loyal customers that take a
long time to switch to another brand.

Gillette Red Bull

29
 Importance of Branding to Firms
 Branding builds financial value: Brands can be measured in financial
terms and can be found on the asset side of the balance sheet
 Strong and successful brands can be bought and sold by the organization

Case Study-Facebook

WhatsApp acquisition by Facebook

• Facebook, Inc. announced it was taking over WhatsApp for USS19 billon
on February 19, 2014
• At the time, it was the largest acquisition of a venture-backed company
in history.
• Sequoia Capital witnessed an approximate 5000% return on is initial
investment.
• Facebook paid around $4 billon n cash, $12 billion in Facebook shares,
and an additional $3 billion in restricted stock units yielded to
WhatsApp's founders Koum and Acton. 30
 Importance of Branding to Firms
 Branding improves
recognition: A logo is one of
the significant component of the
company‘s brand. A professional
logo design is simple to
remember and catchy enough to
give desired recognition to the
company.
 Branding builds trust: Reliability
and trust are two important
elements built by the professional
appearance .
 Eg. In Finance –JP Morgan and
Chase co.
 Apple Inc. in electronics
31
 TATA CONSULTANCY SERVICES: BRANDING A TECHNOLOGY
SERVICES FIRM
 TCS, Asia's largest IT services firm, established
itself through on-time, cost-efficient, and high-
quality solutions. Post its public listing in 2004,
TCS embraced growth, introducing the
"Experience certainty" manifesto to define its
client promise.
 Launched a global campaign across prominent
business publications, emphasizing the ethos of
"Experience certainty."
 Internally, TCS educated every employee on this
promise through presentations, videos, and team
exercises, fostering alignment.
 Ongoing investment in strategic
digital marketing, including
sponsoring marathons, aligns TCS
with the runners they support.
 Analogies drawn between marathon
runners' and TCS's because just like a
marathon runner gauges distance to
be covered and the resources of time
and energy at his disposal, TCS too,
utilizes company resources wisely to
win the race.
 In TCS achieved significant
milestones, becoming India's most
valued company in 2013, surpassing
established stock market giants.
32
 Roles and Relevance of Brand
 An overview of the different roles that brands play for the two parties-
Consumers and Manufacturers includes:

Consumers Manufacturers
• Identification of source of product • Means of identification to simplify
• Assignment of responsibility to handling or tracing
product maker • Means of legally protecting unique
• Risk reducer features
• Search cost reducer • Signal of quality level to satisfied
• Promise, bond, or pact with maker customers
of product • Means of endowing products with
• Symbolic device unique associations
• Signal of quality • Source of competitive advantage
• Source of financial returns
33
Roles and Relevance of Brand For Consumers
 Identification of Source of Product: Branding helps consumers easily
recognize the origin of a product or service. It acts as a marker, instantly
connecting the item to a specific company or manufacturer.

 Assignment of Responsibility to Product Maker: Brands hold

companies accountable for the quality and reliability of their products or
services. A strong brand signifies a commitment to maintaining certain
standards.

 Risk Reducer: Familiar brands often lower the perceived risk for
consumers. When individuals trust a brand, they feel more confident in their
purchase, expecting consistent quality and performance.

34
 Roles and Relevance of Brand For Consumers
 Search Cost Reducer: Brands simplify the decision-making process. By having
a reputable brand, consumers can make quicker choices without extensive
research or evaluation.

 Promise, Bond, or Pact with Maker of Product: Brands establish an

implicit contract with consumers. They convey a promise of certain qualities or
experiences associated with the product or service, building trust and loyalty.

 Symbolic Device: Brands often carry symbolic meaning beyond the product
itself. They can represent status, lifestyle, values, or aspirations, creating an
emotional connection with consumers.

 Signal of Quality: A strong brand serves as a signal of consistent quality. It

assures consumers of the product's reliability, performance, and value. 35
 Roles and Relevance of Brand For
Manufacturers
 Means of Identification to Simplify Handling or Tracing:
Brands simplify the identification and tracking of products,
streamlining logistics and supply chain management.

 Means of Legally Protecting Unique Features: Brands offer legal

protection (like trademarks) for distinctive product features,
preventing imitation and ensuring uniqueness.

 Signal of Quality Level to Satisfied Customers: Established

brands signal consistent quality, fostering satisfaction and trust among
customers.

36
Roles and Relevance of Brand for Manufacturers
 Means of Endowing Products with Unique Associations: Brands
create unique associations, linking products with specific values,
lifestyles, or emotions, setting them apart in the market.

 Source of Competitive Advantage: Strong branding provides a

competitive edge, differentiating products from competitors and
influencing consumer choices.

 Source of Financial Returns: Successful branding drives financial

returns by increasing customer loyalty, enabling premium pricing, and
enhancing market share and profitability.

37
 Branding
In 2012, the Collegiate Licensing (American college brand)
announced a partnership with Barbie for a co-branded, University-
themed Barbie doll collection featuring Auburn University, The
University of Alabama, University of Arkansas, and Louisiana State
University.
THANK YOU