Module 1: Introduction of

Brand
 Meaning and importance of brands
 Brands vs. Products
 Challenges and opportunities
 Brand management process
 Role of CRM in building brands
Origin of brand
In olden days, ranch owners used to mark
their cattle to keep them separate from
other people’s cattle. The mark was
known as brand.
The concept of branding also developed
through the practices of craftsmen who
wanted to place an identification mark on
their work. These craftsmen used their
initials, a symbol, or another unique mark
to identify their work and they usually put
these marks in a low visibility place on
the product.
Why branding?
 Try to think about the two brands of
pizza providers. Compare them over
various parameters.
 … the reason consumers flock to some
brands and ignore others is that behind
the brand stands an unspoken promise
of value. That is why brands are
becoming even more important drivers
of growth.
Key trends leading to
branding
 Less loyal / more « intelligent (?) » buyer 
 Multiplication of offers & chanels
 Interactive marketing technologies
 Markets saturation
 Loss of credibility of traditional media
contacts
 Search for emotions
 Thus,the product/service offering must
provide good experience along with
unique value to customers .
For avoiding marketing
inertia
 Titan has developed more that 12 brands
for different segments.
 Britannia has revamped its image,
lowered its prices and introduced various
items and packaging in product line.
 ITC has diversified into unrelated product
lines like ready to eat meals, grocery etc.
 Retailers are stressing on Customer
Loyalty Programs (CLPs).
Brand
 It is a seller’s promise to deliver consistently
a specific set of features, benefits and
services to buyers.
 Though brand is to create differentiation but
brand name itself cannot act as a
differentiator.
 The strength of brand is directly proportional
to the expectations of the customers about it.
 In order to create a strong brand the
marketers along with valued product and
service offering, they communicate through
advertising, establish PR, do publicity and
practice corporate social responsibility (CSR).
A brand can deliver up to four levels of meaning:

1. Attributes: A brand first brings to mind certain

attributes which the marketer can use for
advertising.

2. Benefits: customer do not buy attributes, they buy

benefits. for example:

Attribute: Moov is not black

Benefit: it will not leave any stain on clothing (unlike
its competitor-Iodex).

3. Values : a brand conveys about the buyer’s value.

so, while targeting, a brand manager must
identify the segment, whose values coincide with
delivered benefits.
4. personality: A brand also projects a personality. if
the brand is assumed to take shape of a person,
what kind of person would it be?
Branding Now
 A brand is an intangible asset that resides in
people’s minds, which is defined by the
expectations people have about the benefits
they will receive. These expectations of
benefits are developed over time by
communications and - more importantly -
by actions.
 Branding is Experiential and not only the
brand manager but Everyone is
Responsible For it.
Product vs. brand
Imagine a situation –where all the soaps and
detergents offered by HLL are without brand
names…….
Consequences:
 No customer would be able to identify the
accurate product offering.
 Marketers would have faced difficulty in
advertising.
 Marketers would not be able to differentiate
among their own products.
 Comparison with competitor’s products become
impossible.
A brand is a product, but with added
dimensions, which differentiates it in some
way from other products designed to satisfy
the same need.
These differences can be rational and
tangible I.e., related to product
performance.
These differences can be more symbolic,
emotional and intangible like customer’s
perception and their feelings about the
product attributes.
By creating perceived differences among
products through branding, marketers
create value and loyalty which provides
financial benefits to them.
Advantages of branding
 Easy for the seller to track down problems and
process orders
 Provide legal protection of unique product
features
 Branding gives an opportunity to attract loyal
and profitable set of customers
 It helps to give a product category at different
segments, having separate bundle of benefits
 It helps build corporate image
 It minimizes harm to company reputation if
the brand fails. e.g. Dhara mustard oil
Challenges and opportunities
of branding
 Increased awareness of customers
 Proliferation of brands, which creates
confusion.
 The increased difficulty of creating
differentiation.
 Media fragmentation
 The ability to sustain superiority,
 The scarcity of financial resources.
 Brand management process

Brand management is about effectively managing

stakeholder perceptions to maximize the value to your
business. Here are some simple questions we use everyday
to help ur customers through the process.
Question 1: Who's it all for?

Who are the people that have a relationship with your

brand? Don't just think of customers. There are many
other groups involved in your brand. Your list of
stakeholders may include: employees, business
partners, distributors, investors, even yourself - as well
as customers. Make a comprehensive and inclusive list
of the stakeholders in your brand.
.
 Question 2: Where are you now?

 As the old saying goes "you can't get where

your going if you don't know where your at." It
is essential to understand how your brand is
currently perceived by your stakeholders. It's
crucial to remember the brand is not what
exists in your brochures or your Website. Your
brand is what exists in the minds of your
stakeholders- its not just what your company
says, it's what it does. This is where
stakeholder perceptions come from, and it is
these perceptions that will determine your
business' success or failure.

Be fearless and honest, and take the time to

understand your current brand as it exists in the
minds of your stakeholders.
Question 3: What's the competition doing?
Where's the market going?

To position your brand for the future you need to

know where you are now, where your competitors
are now, and the trends that will impact on your
market. Coming as close as possible to an
understanding of these three elements provides
the best place to start. It's also a good idea to be
careful to identify trends that will have a
significant impact on your market over the
coming years, not just the short-term fads.

Thoroughly study your competitor's brands

(and what people think of them) and your
market trends
Question 4: Where do you want to go?

If you want a powerhouse brand it needs to be distinctive from its

competitors and motivating to its customers.
We ask you to ask yourself:
 What are our brand strengths? (or, what could they be?)
 How will this be distinctive from our competitors?
 Why will this be motivating to our consumers?
 And finally, will these strengths become more important in the
market over time, or less important?

Your answers should be realistic and focused, and it's a

good idea to run them by your brand stakeholders for a
'reality check'.

Now we craft the answers to these questions into a

statement of your desired brand or your Brand
Philosophy.
Question 5: What do we do next?

it's not a battle... it's a war. To build the desired

brand in the mind of your stakeholders is perhaps
the greatest challenge a business faces, and the
smart ones face it every day. Good brand
management requires constant review of what
you say and what you do - and how they live up
to the brand you are trying to build.

the next step is to plan your brand and do

the work.
Customer Relationship
Management
 Focus on providing excellent service to
retain profitable customers
 Heavy reliance on computers and Internet
to collect data and to conduct personal
dialogues
 Aim to achieve a close and strong firm
customer relationship again

The key to effective marketing is to treat

each customer an a unique individual. The
key to achieving this is to use interactive
dialogue to
provide personalized services, create life-
time customer value through
customization, and to foster a sense of
community to strengthen brand loyalty.
 Element of a Customer
Connection
Strategy

1.Customer Knowledge – effective leverage of

the
information and experiences in the acquisition,
development and retention of a profitable
customer portfolio.

2. Connection Technologies – direct interface

with the customer of a channel for exchanging
information.

3. Customer Economics – evaluate investments

in customer knowledge and technologies to
achieve profitable customer portfolios and
growth in firm value.
Benefits of CRM
What is Brand Equity?
There are many different definitions of
Brand Equity, but they do have several
factors in common:

 Monetary Value. The amount of

additional income expected from a
branded product over and above what
might be expected from an identical,
but unbranded product. For example,
grocery stores frequently sell
unbranded versions of name brand
products.
 Intangible. The intangible value
associated with a product that cannot
be accounted for by price or features.
 Pepsi and Coke have created many
intangible benefits for its products by
associating them with film stars.
Children and adults want to consume
their products to feel some
association with these stars.
 It is not the ingredients or the
features that drive demand for their
products, but the marketing image
that has been created
 Perceived Quality. The overall
perceptions of quality and image attributed
to a product, independent of its physical
features.
 Mercedes and BMW have established their
brand names as synonymous with high-
quality, luxurious automobiles.
 Years of marketing, image building, brand
nurturing and quality manufacturing has
lead consumers to assume a high level of
quality in everything they produce.
 Brand Equity is a set of assets and
liabilities linked to a brand, its name
and symbol that add to or subtract
from the value provided by the product
or service to a firm and/or to that of
firm’s customers.
 This added value can be used to your
company’s advantage to charge price
premiums, lower marketing costs and offer
greater opportunities for customer
purchase.
How Do You Measure Brand
Equity?
 Cost based methods: how much would it
cost to create a brand like Colgate with
similar turnover, profitability , distribution
reach, brand loyalty etc.
 Price based methods: to compare the retail
price of brand and the retail price of an
unbranded product in same category.
 Consumer based methods: brand
awareness, brand recall, brand loyalty etc.
can be compared.
Nokia - Building A Powerful
Technology Brand
 In mobile phone market ,the products range
from the simple to the complex, but every
manufacturer offers the latest features.
 Based on design leapfrogging in sales between
brands frequently occurs.
 But overall the market is predictable, with
Nokia, Motorola, and Ericsson fighting it out at
the top and brands like Samsung, Philips,
Siemens and Panasonic trying hard to acquire
other‘s market share.
 So what makes the difference between the
most successful and less successful brands?
 It certainly is not what product features are
offered. How, then, do consumers choose?
 The answer seems to be what the brand
names mean to them.
 Nokia Group the Finland-based manufacturer
of mobile phones, has been steadily working
on its corporate brand name and the
management of consumer perceptions over
the last few years.
 it is now the number one brand in many
markets around the world, effectively
dislodging Motorola from that position.
 Nokia has succeeded in lending
personality to its products, without even
giving them names.
 It has not created any sub-brands but
has concentrated on the corporate
brand, giving individual products a
generic brand personality.
 Only numeric descriptors are used for
the products, which do not even appear
on the product themselves. Such is the
strength of the corporate brand .
Nokia Brand Personality
 Nokia has detailed many personality
characteristics for its brand
 As the focus is on customer
relationships, the Nokia personality is
like a trusted friend. Building
friendship and trust is at the heart of
the Nokia brand.
 And the human dimension created by
the brand personality carries over into
the positioning strategy for the brand.
Nokia Positioning
 When Nokia positions its brand in the
crowded mobile phone marketplace, its
message must clearly bring together the
technology and human side of its offer in
a powerful way.
 in every advertisement and market
communication (though not necessarily
in these words) is "Only Nokia Human
Technology enables you to get more out
of life“, represented by the tag line, "We
call this human technology".
 This gives consumers a sense of trust and
consideration by the company, as though to
say that Nokia understand what they want in
life, and how it can help. And it knows that
technology is really only an enabler so that
you-the customer-can enjoy a better life .
 Nokia thus uses a combination of
aspirational, benefit-based, emotional
features, and competition-driven positioning
strategies. It owns the "human" dimension of
mobile communications, leaving its
competitors wondering what to own (or how
to position themselves), having taken the
best position for itself.
Nokia Product Design
 how does Nokia manage to inject personality into
product design?
 The large display screen, for example, is the
"face" of the phone. Nokia designers describe it
as the "eye into the soul of the product".
 The shape of phones is curvy and easy to hold.
 The faceplates and their different colors can be
changed to fit the personality, lifestyle, and mood
of the user.
 The soft key touch pads also add to the
feeling of friendliness, expressing the
brand personality.
 Product design focuses on the consumer
and his needs, and is summed up in the
slogan, "human technology.“
 Nokia achieved its brilliant feat through
consistent branding, backed by first-
class logistics and manufacturing, all of
which revolve around what consumers
want.