BM Slides Session 19 20

Brand Management
KCT Business School

Batch : 2023-245 Semester : II
Course Instructor: Dr. K.R.Senthilvelkumar
Feb – May, 2024
Dr. K.R.Senthilvelkumar KCT

Business School
New Product Development
and Branding Strategy

Business School
New Product Development
• Branding a new product:
– It can develop a new brand name
– It can use the existing brand
name
– It can use the combination of old
name and new name
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INTENSIVE GROWTH STRATEGY
Ansoff’s Product-Market Expansion Grid
Market Product
Curr. Mkt Penetration Development
Strategy Strategy
Market
New Mkt Development
Strategy
Current Product New Product

Business School
Brand Extension
• A Brand Extension occurs
when a firm uses an
established brand name to
introduce a new product

Business School
Brand
Extensions
• Why?
– Reducing risk
– Enhance image
– Synergies in mktg
– Increasing value
Business School
Brand Extensions
• Disadvantages:
– Can confuse consumers
– Can encounter retailer resistance
– Can fail and hurt parent brand image
– Can succeed and cannibalize the
sales of parent brand
– Can dilute brand meaning

Business School
Brand Extensions
• Objective:
– Instant recognition
– Cost saving
– Leveraging the strength
• Types:
– Line extensions
– Category Extensions /Related extensions
– Unrelated extensions

Business School
Brand
Extensions
• Line extensions:
– Colgate: Dental Cream, Active Salt, Herbal,
Maxfresh, Sensitive Prorelief, Total etc
– Dove: Pink/ Rosa Beauty Bathing Bar, Go

Fresh Moisture Beauty Bathing Bar, Sensitive
Beauty BathingDr. Bar, Exfoliating
K.R.Senthilvelkumar KCT
Body Wash
etc. Business School
Brand
Extensions
• Category Extensions /Related Extensions:
– Dove: Purely Pampering Shea Butter and Warm

Vanilla Body Lotion, Original Antiperspirant
Deodorant, Daily Shine Shampoo, Oxygen Moisture
Conditioner, Elixir Nourished Shine Hair Oil etc.
– Fastrack: Watches, Belts, Sunglasses,

Dr. K.R.Senthilvelkumar KCT Bags etc.
Business School
Brand Extensions
• Unrelated extensions:
– Pepsi: Soft drink to TV
Channel, ‘PepsiMTVIndies’
– MTV: TV Channel to
Fashion accessories

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Prerequisites for consumers’ favourable
evaluation of a brand extension
• Consumers have some awareness of and

positive associations about the parent brand
in memory
• At least some of the positive associations

will be evoked by the brand extension
• Negative associations are not transferred

from the parent brand
• New negative associations are not created

by brand extension
Business School
Brand Extension Checklist
• Does the parent brand have strong equity?
Is there sufficient equity transfer to the
extension?
• Is extension consistent with the brand vision

and essence? Will it make sense to target
segment?
• Are the organizational skills and resources

support the extension?
• Does extension have necessary points-of-

parity, points-of-difference and can it create
strong competitive positioning?
Business School
Brands attempting to go global
• Desire to reduce costs from economies of
scale
• Slow growth or increased competition in
domestic market
• Recognition of global mobility of
customers
• Small size of the segment especially for
luxury goods
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• Two major decisions

–Standardisation
–Customisation

Business School
P&G
• “To us, a global brand is one that has
a clear and consistent quality – or
identity with consumers across
geographies. It is generally positioned
the same way, has the same product
formulation, delivers the same
benefits and uses a consistent
advertising concept … unless there is
a strong justification for difference”
Business School
Heinz
• Heinz ketchup has a slightly sweet
taste in the United States, but is
spicier in certain European countries
where it is available in curry flavours
too. Heinz offers a ketchup made
from bananas in Philippines.

Business School
• Choosing the Standardisation
option:
–Uniformity in product design,
packaging, advertising,
promotion and other marketing
efforts
Business School
• Choosing the Standardisation option:
– Advantages:
• Economies of scale in production
• Lower marketing costs
• Power and scope
• Consistency in Brand Image
• Ability to leverage good ideas quickly
• Greater coordination and control

Business School
– Limitations:
• Differences in consumer needs, wants and usage patterns

Business School
Per Capita Consumption in Litres
Country Carbonated Soft Drink Bottled Water
Australia 111.8 25.3
Brazil 69.6 24.7
China 7.3 6.0
France 42.1 131.3
Germany 90.5 106.6
India 1.7 2.6
Iceland 155.2 24.1
Mexico 152.1 130.0
South Africa 53.5 1.9
United States 203.9 73.8

Dr. K.R.Senthilvelkumar KCT Business School
– Limitations:
• Differences in consumer response to marketing mix elements
– US consumers are skeptical about advertisements –want heavy factual
information – product beliefs - attitude
– Japanese respond positively – soft/ abstract in nature
– Koreans stress upon social normative beliefs

Business School
– Limitations:
• Differences in Brand and Product Development
• Differences in Legal Environment
– Venezuela, Canada and Australia – locally produced communications
– Sweden – no advertisements for children
– Austria – no use of kids in advertisements
– Singapore – no comparative advertisements

Business School
– Limitations:
• Differences in Marketing Institutions
• Differences in Administrative Procedures

Business School
• Candidates for global standardisation:
• Products with uniform functional utility /High-technology products
with strong functional images: TV, Watches, Computers, Smart
Phones, Automobiles, Cameras
• High-image products with strong association to
fashionability
– Cosmetics, Clothes, Jewellery
• Services and B2B products
– Airlines, Banks
• Retailers who sell to upper-class customers or
specialty stores
• Brands based on country-of-origin

Business School
• Ten Commandments of global branding:
– Understand similarities and differences
• MTV, Vodafone, Unilever that previously owned
Snuggle (Germany – Kushelweich, France –
Cajoline, Italy – Coccolino, Spain – Mimosin)
– Don’t take shortcuts
– Establish marketing infrastructure
– Embrace IMC
– Cultivate brand partnerships

Business School
• Ten Commandments of global branding:
– Balance standardization and customization
– Balance global and local control
– Establish operable guidelines
– Establish a global brand equity measurement
system
– Leverage brand elements

Business School
Brand Storytelling
– Sharing any story or belief to a target group
in order to arouse bonds in people’s mind or
emotion so that such brand becomes more
attractive, more recognized, and also
provokes relationship among people in the
organization and with other stakeholders
outside the organization.
- Sirirat
Kosakarika

Business School
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Evolution of Brand Storytelling
– First Wave: Story-addictive Interruption
• Subscription based newspapers
• Newspaper advertisements
• Radio, TV and other options emerged
– Second Wave: Deceptive Story Manipulation

• Rational and Emotional motives
– Third Wave: Authentic Story-driven Connection

Business School
Brand Storytelling
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» Titan RagaBreakTheBias.mp4

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Business School
Business School
Business School
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Evolution of Brands
Source: ‘Wikibrands’ by Sean Moffitt and Mike Dover
BRAND BRAND PURPOSE BRAND – CUSTOMER
GENERATION FUNCTION
Trademark Mark of brand ownership Something you buy
(Until 1860) (e.g., art work)

Business School
Evolution of Brands

GENERATION FUNCTION

Business School
Evolution of Brands
GENERATION FUNCTION
(Until 1860) (e.g., cattle)
Brand mark Mark of brand quality Something you trust
(1860-1920s) (e.g., Ivory soap)

Business School
Evolution of Brands

GENERATION FUNCTION
(1860-1920s) (e.g., Ivory soap)

Business School
Evolution of Brands

GENERATION FUNCTION
(1860-1920s) (e.g., Ivory soap)
Mass market brand Mark of positive Something you want
(1920s-early 1980s) associations (e.g., Marlbaro)

Evolution of Brands

GENERATION FUNCTION
(1860-1920s) (e.g., Ivory soap)

Business School
Evolution of Brands

GENERATION FUNCTION
(1860-1920s) (e.g., Ivory soap)
Post-mass market Mark of superior brand Something you prefer
brand attributes (e.g., Tylenol)
(1980s– late 1990s)

Evolution of Brands

GENERATION FUNCTION
(1860-1920s) (e.g., Ivory soap)
(1980s– late 1990s)

Business School
Evolution of Brands

GENERATION FUNCTION
(1860-1920s) (e.g., Ivory soap)
(1980s– late 1990s)
Love mark Mark of inspirational brand Something you love
(Early 2000s) values/ stories/ design
(e.g., Apple)

Business School
Evolution of Brands

GENERATION FUNCTION
(1860-1920s) (e.g., Ivory soap)
(1980s– late 1990s)
(e.g., Apple)

Business School
Evolution of Brands

GENERATION FUNCTION
(1860-1920s) (e.g., Ivory soap)
(1980s– late 1990s)
(e.g., Apple)
Wikibrand Mark of brand interaction Something you
(The future) (e.g., Facebook) participate in
Evolution of Brands
GENERATION FUNCTION
(1860-1920s) (e.g., Ivory soap)
(1980s– late 1990s)
(e.g., Apple)
Wikibrand Mark of brand interaction Something you
(The future) (e.g., Facebook) participate in
Brand Gamification
• Gamification
– The use of techniques derived from real-life
games for engaging and rewarding customers
thus making a product or service more
addictive to them.
• Benefits:
– Increased brand awareness
– Brand recall
– Customer engagement
– Brand preference
– Purchase desire
Business School
Sustainable Branding
• Sustainable branding is the process of
building an identity that reflects
environmental concern as its core brand
essence and of striving to also address
economic, ethical and social issues in its
business operations.
• Sustainability helps in achieving unique
brand differentiation, emotional bonding
with consumers and high purchase
motivation. Dr. K.R.Senthilvelkumar KCT
Business School
Sustainability-Profitability
Relationship Model

Business School
Relationship Model

Business School
Relationship Model

Successful Sustainable
Branding Strategy

Sustainability through 6 Ps
• Planet
• People
• Product
• Packaging
• Pricing
• Promotion

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Brand Management

KCT Business School

Feb – May, 2024

Dr. K.R.Senthilvelkumar KCT

Dr. K.R.Senthilvelkumar KCT

Current Product New Product

Dr. K.R.Senthilvelkumar KCT

Dr. K.R.Senthilvelkumar KCT

Dr. K.R.Senthilvelkumar KCT

– Dove: Pink/ Rosa Beauty Bathing Bar, Go

– Dove: Purely Pampering Shea Butter and Warm

– Fastrack: Watches, Belts, Sunglasses,

Dr. K.R.Senthilvelkumar KCT

• Consumers have some awareness of and

• At least some of the positive associations

• Negative associations are not transferred

• New negative associations are not created

• Is extension consistent with the brand vision

• Are the organizational skills and resources

• Does extension have necessary points-of-

• Two major decisions

Dr. K.R.Senthilvelkumar KCT

Dr. K.R.Senthilvelkumar KCT

Dr. K.R.Senthilvelkumar KCT

Dr. K.R.Senthilvelkumar KCT

Country Carbonated Soft Drink Bottled Water

Australia 111.8 25.3

Brazil 69.6 24.7

China 7.3 6.0

France 42.1 131.3

Germany 90.5 106.6

India 1.7 2.6

Iceland 155.2 24.1

Mexico 152.1 130.0

South Africa 53.5 1.9

United States 203.9 73.8

Dr. K.R.Senthilvelkumar KCT

Dr. K.R.Senthilvelkumar KCT

Dr. K.R.Senthilvelkumar KCT

Dr. K.R.Senthilvelkumar KCT

Dr. K.R.Senthilvelkumar KCT

Dr. K.R.Senthilvelkumar KCT

Dr. K.R.Senthilvelkumar KCT

– Second Wave: Deceptive Story Manipulation

– Third Wave: Authentic Story-driven Connection

Dr. K.R.Senthilvelkumar KCT

Dr. K.R.Senthilvelkumar KCT

Dr. K.R.Senthilvelkumar KCT

Dr. K.R.Senthilvelkumar KCT

BRAND BRAND PURPOSE BRAND – CUSTOMER

Dr. K.R.Senthilvelkumar KCT

Dr. K.R.Senthilvelkumar KCT

BRAND BRAND PURPOSE BRAND – CUSTOMER

Dr. K.R.Senthilvelkumar KCT

BRAND BRAND PURPOSE BRAND – CUSTOMER

Dr. K.R.Senthilvelkumar KCT Business School

BRAND BRAND PURPOSE BRAND – CUSTOMER

Dr. K.R.Senthilvelkumar KCT

BRAND BRAND PURPOSE BRAND – CUSTOMER

Dr. K.R.Senthilvelkumar KCT Business School

BRAND BRAND PURPOSE BRAND – CUSTOMER

Dr. K.R.Senthilvelkumar KCT

BRAND BRAND PURPOSE BRAND – CUSTOMER