Prof.

Carlos Wolff
1
 O Ambiente de
IdentificarMarketing
Identificar as
Oportunidades de competências da
Mercado organização e dos
Compreender o valor concorrentes
dos clientes e dos
segmentos de clientes Understandin
g
Compreender Competitor
o mercado Capabilities
Understanding Understandin
Marketing g
Environment Company
Capabilities
Selecting
Market
Prof. Carlos Wolff
Segment 2
 Framework Of
Marketing
Developing Competitive
Marketing Strategy

Developing
Value Proposition,
Positioning Strategy

Delivering
Profitable Value

Developing Communicatin Delivering

Market g Market Offering
Offering: Market
Prof. Carlos Wolff
Product & Price Offering 3
Prof. Carlos Wolff
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 Product Management

Developing and Positioning

New Products.
Managing product through its
life cycle.
Building and managing brands.

Prof. Carlos Wolff

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Prof. Carlos Wolff
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 AGENDA
What is a Brand?
What makes a Brand?
Why to make a Brand?
What are the Benefits of Brand to the
Consumer?
How to Position a Brand?
What is Brand Portfolio?
How to Manage Brand Portfolio?
How to Build both Business & Brand?

Prof. Carlos Wolff 7

 What is a Brand?
American Management Association
defines brand as follows:
“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
the competitors.”
Prof. Carlos Wolff
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 What is a Brand?
A brand is a set of mental
associations, held by the consumer,
which add to the perceived value of
the product or service.
These associations should be unique
(exclusivity), strong (salient), and
positive (desirable).
Strong brands have an intense
emotional component.

Prof. Carlos Wolff 9

 What is a Brand?
Brands have financial value as
customers are willing to pay more,
because of the beliefs and bonds that
are created over time in their minds
and hearts through the marketing of
the brand.
A brand is not born but made.
A brand name reaches the status of a
brand, when the name influences
buyers, by evoking desirable
associations such as saliency,
differentiability, intensity, and trust.
Prof. Carlos Wolff 10
 What is a Brand?
 What makes a name acquire
the power of a brand is the
product or service, together
with people at points of
contact with the market, the
price, the places, the
communication – all the
sources of cumulative brand
experience.
Prof. Carlos Wolff
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 What Makes a Brand?
Several elements constitute the
making of a brand:
• Brand identity (association)
• Brand awareness (brand salience)
• Brand meaning (performance and imagery)
• Brand response (judgments and feelings)
• Brand resonance (relationships and loyalty)

Prof. Carlos Wolff 12

 What Makes a Brand?
 The brand is not a product but
it gives the product meaning
and defines its identity.
 Identity is anything that is
directly or indirectly linked or
associated in memory to a
brand.

Prof. Carlos Wolff

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 What Makes a Brand?
One of the most important identity
of the brand is through the
appearance of the brand
(physique) in terms of chosen
name, colours, logo, and
packaging. Ex., Kodak’s yellow.
The most common association is
that of product attributes or
customer benefits. Colgate
represents clean, white teeth, and
Close-Up generates fresh breath.
Prof. Carlos Wolff
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 What Makes a Brand?
The brand may represent some culture –
background and values.
Mercedes personifies German values, Nike
celebrates the virtues of individualism.
The brand can project certain personality.
This is the character of the brand.
IBM’s personality is seriously professional,
while Apple’s is young and creative.

Prof. Carlos Wolff 15

 What Makes a Brand?
The brand may project how it seeks
to relate to the customer.
An aspirational brand like Arrow
invites you to join an exclusive class.
The brand may reflect the image of
the target audiences in the brand’s
communications, e.g. Coca-cola
reflects young people in its ads,
even though the actual market is
much wider.

Prof. Carlos Wolff 16

 What Makes a Brand?

The brand makes customer see herself or himself (self-image)

in relation to the brand.
Even if they do not practice any sports, Lacoste clients
inwardly picture themselves as members of a sports club.

Prof. Carlos Wolff 17

 Lacoste Identity Prism
Quality shirt Picture of Sender
Tennis
Golf Discrete
Sportswear Without fancy
Physique Personality
Social Individualism
conformity Aristocratic
and Relationship LACOSTE Culture ideals
distinction Classicism
Customers’ Customers’
Reflection Self projection
Neither hyperfeminine
nor hypermasculine Belonging to a club

Picture of Recipient
Prof. Carlos Wolff
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 What Makes a Brand?
A brand’s associations are
assets that can differentiate,
provide reasons to buy, instil
confidence and trust, affect
feelings towards a product and
the use experience, and
provide the basis for brand
extension.
Prof. Carlos Wolff
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 What Makes a Brand?
A key step in creating a brand is to determine the brand’s
identity or vision – the associations that the brand aspires to
represent.
The process of creating a brand identity or vision can provide
a good framework for making business strategy decisions.

Prof. Carlos Wolff 20

 What Makes a Brand?
Having created the brand
identity, the awareness and
presence of the brand is to be
built economically and
efficiently.
Brand awareness has several
benefits:
First, awareness provides the
brand with a sense of familiarity,
and people like the familiar.
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 What Makes a Brand?
Second, name awareness can
be a signal of presence,
commitment, and substance.
The logic is that if a name is
recognised, there must be a
reason.
Third, the salience of a brand
will determine if it is recalled
at a key time in the
purchasing process.
Prof. Carlos Wolff
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 What Makes a Brand?
Having created the brand identity and
awareness, the next step is to
actually establish the brand meaning
in the mind of the target customers
through positive brand experience.
Brand meaning relates to the
performance of the brand and the
imagery of the brand.
Brand performance relates to how the
product or service meets customer’s
functional needs.

Prof. Carlos Wolff 23

 What Makes a Brand?
 Brand imagery deals with the
extrinsic properties of the product or
service, including the ways in which
the brand attempts to meet
customer’s psychological or social
needs.
 The next level is the response
(judgments and feelings) the brand
receives from the target customers.
 Brand judgments focus on
customer’s own personal opinions
and evaluations.
 Brand feelings are customer’s
Prof. Carlos Wolff
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 What Makes a Brand?
It is necessary to manage all the customers’
brand contacts so that they meet or exceed
the customers’ expectations associated with
the brand.
This would call for emphasizing not only
functional benefits but also process benefits
(which makes transactions between buyers
and sellers easier, quicker, cheaper, and
more pleasant) and relationship benefits
(which rewards the consumers for continued
relationships with the company).

Prof. Carlos Wolff 25

 What Makes a Brand?
The final level of the brand is the brand resonance,
which refers to the nature of relationship that
customers have with the brand and the extent to
which customers feel that they are “in sync” with
the brand.

Prof. Carlos Wolff 26

 What Makes a Brand?
 Resonance is characterized in
terms of the intensity or depth of
the psychological bond customers
have with the brand, as well as the
activity engendered by this loyalty.
 Brand Loyalty is concerned with
how and why customers are willing
to enter into a relationship with a
particular company (rather than
merely conducting single
transactions with it).
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 What Makes a Brand?

 The brand loyalty is based

essentially on trust and
confidence.
 This trust and confidence is
built over extended
interactions between the
customer and the
brand/supplier.
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 Elements Of Brand
Trust
Probity

Competence Continuity
Brand Trust

Value
Caring
Resonance

Prof. Carlos Wolff

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 What Makes a Brand?
 Competence: technical
capability to completely make
the product, or effectively
deliver the service, they are
offering. Back
 Probity: belief that the
company will conduct its
transactions with a customer
in an honest and fair way. Back
Prof. Carlos Wolff
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 What Makes a Brand?
 Continuity: belief that the
company has the resources
and commitment necessary to
remain in the business area
relevant to the customer.
 This is particularly important
in relation to products which
have a long lifetime. Back
Prof. Carlos Wolff
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 What Makes a Brand?
 Caring: the company’s employees
are sufficiently motivated to care
about the quality of service or
performance they deliver. Back
 Value Resonance: it is concerned
whether or not the brand/company
expresses values which the
individual consumer aspires to
incorporate in their personal life
style.
Prof. Carlos Wolff
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 Brand Resonance
Pyramid
4. Relationships = Intense,
What about you active
Resonance
and me? loyalty

ts
Fe
en
3.Response Positive,

eli
gm
= What accessible

ng
Jud
about you? reactions

s
ce
an

Im
m Strong, favorable

ag
2. Meaning = r
fo unique brand

er
What are you? er

y
P associations

Deep, broad
1.Identity = Salience brand
Who are you?
awareness
Prof. Carlos Wolff
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 Why to Make a Brand?

Building a strong brand identity,

awareness, positive brand
response, and brand loyalty,
lead to a strong brand equity.
Brand equity is a set of assets
linked to a brand’s name and
symbol that add to the value
provided by a product or service
to a customer.
Prof. Carlos Wolff
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 Why to Make a Brand?
 Brand equity results in
customers showing a
preference for one product
over another when they are
basically identical.
 The extent to which customers

are willing to pay more for the

particular brand is a measure
of brand equity.
Prof. Carlos Wolff
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 Why to Make a Brand?
The creation of significant brand equity involves
reaching the top of the brand pyramid (brand
resonance), and will occur only if the right building
blocks are put into place.

Prof. Carlos Wolff 36

 Why to Make a Brand?
 Branding gives the company
the opportunity to attract loyal
and profitable set of
customers.
 The reputation of the brand is

a source of demand and lasting

attractiveness, the image of
superior quality and added
value
Prof. Carlos Wolff justifies a premium
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 Why to Make a Brand?
A dominant brand is an entry barrier
to competitors because it acts as as
a reference in its category.
If it is a prestigious or a trendsetter
in terms of style it can generate
substantial royalties by granting
licenses.
Strong brands help build the
corporate image making it easier to
launch new brands and gain
acceptance by distributors and
Prof. Carlos Wolff
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 WHAT ARE THE BENEFITS OF
THE BRAND FOR CONSUMER?
Functio Consumer Benefit
n
Identification To be clearly seen, to quickly
identify
the sought-after products.
Practicality To allow savings of time and
energy
through identical repurchasing
and
Guarantee Toloyalty.
be sure of finding the same quality
no matter where or when you buy the
product.

Prof. Carlos Wolff 39

 What are the Benefits
of the Brand for
Consumer?
Function Consumer Benefit
Optimization To be of buying the best product in its
category, the best performer for a
particular purpose.
CharacterizationTo have a confirmation of your
self
image that you present to others.
Continuity Satisfaction brought about
through
familiarity and intimacy with the
brand that you have been
Prof. Carlos Wolff
consuming 40
 What are the Benefits
of the Brand for
Consumer?
Functio Consumer Benefit
n
Hedonistic Satisfaction linked to the attractiveness
of the brand, to its logo, to its
communication.

Ethical Satisfaction linked to the

responsible
behaviour of of the brand in its
relationship with society.

Prof. Carlos Wolff

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 HOW TO POSITION A BRAND?
Positioning a brand means emphasizing the
distinctive characteristics that make it different
from its competitors and appealing to public.
It results from an analytical process based on the
following questions:

Prof. Carlos Wolff 42

 HOW TO POSITION A BRAND?
• A brand for what? This refers to brand promise
and consumer benefit aspect.
• A brand for whom? This refers to the target
aspect.
• A brand for when? This refers to the occasion
when the brand will be consumed.
• A brand against whom? This question defines the
main competitors.

Prof. Carlos Wolff 43

 HOW TO POSITION A BRAND?
Brand positioning indicate what the
brand’s essential difference and raison
d’etre is in comparison with other
products and brands of that category.
The aim of positioning is to identify
and take possession of a strong
purchasing rationale that gives us a
real or perceived advantage.

Prof. Carlos Wolff 44

 Cadbury's-Dairy Milk-II.wmv
Cadbury's-Dairy Milk-I.wmv

Cadburys-Dairy Milk-III.wmv Cadbury - Khush Hoon Kha Makha.mpg

Cadbury Pappu.mpg

Prof. Carlos Wolff

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 WHAT IS BRAND PORTFOLIO?
The brand portfolio includes all the brands managed
by the organization.

• A corporate brand is a brand

that represents the corporation
– or, more generally, an
organization – and reflects its
heritage, values, culture,
people, and strategy.

Prof. Carlos Wolff 46

 WHAT IS BRAND PORTFOLIO?
• A master (or parent) brand is the
primary indicator of the offering,
the point of reference.
• GE is a master brand under
which company sells
refrigerators, aircraft engines,
and variety of other goods.
• Crest is a master brand that
defines a line of dental products
from P&G.
Prof. Carlos Wolff 47
 WHAT IS BRAND PORTFOLIO?
• The subbrands are brands that
modifies a master brand (which
remains the primary frame of
reference) by adding to or changing
its associations (such as an
attribute, a benefit, or personality).
• Example, Pepsi Twist, Pepsi Blue,
Sony Walkman, Toyota Corolla.

Prof. Carlos Wolff 48

 WHAT IS BRAND PORTFOLIO?
• An umbrella brand defines a grouping of
product offerings (Microsoft Office
Word, Microsoft Office Excel, etc.)
under one common brand (Microsoft
Office).
• A cash cow brand is a brand that may
be stagnant or slowly declining, but
there is a hardcore loyal customer base
that is unlikely to leave the brand. The
brand does not require much
investment. Example, Sony Walkman.

Prof. Carlos Wolff 49

 What is Brand
Portfolio?
Co-branding occurs when two
different companies pair their
respective brands in a
collaborative marketing effort.
Each brand sponsor expects
that other brand name will
strengthen brand preference
or purchase intention.
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 BRAND PORTFOLIO
Product Category
Existing New
Brand Name

Existing Line Extension Brand Extension

New Multi-Brand New Brand

Prof. Carlos Wolff

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 What is Brand
Portfolio?
Line extensions occurs when a
company introduces additional
items in the same product
category under the same
brand name, usually with new
flavours, forms, colours, added
ingredients, package sizes,
and so on.
E.g., Colgate Herbal, Colgate
Prof. Carlos Wolff
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 What is Brand
Portfolio?

Brand extension occurs when a

company decides to use an
existing brand name to launch
a product in the new category.
E.g., Dettol, Dettol Soap.

Prof. Carlos Wolff

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 What is Brand
Portfolio?

Brand/Line extension offers a

number of advantages.
Instant recognition and earlier
acceptance
Saves considerable
advertisement costs

Prof. Carlos Wolff

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 What is Brand
Portfolio?
Brand/Line extension also
involves risks.
The new product might
disappoint buyers and damage
their respect for company’s
other products.
The brand name may lose its
special positioning in the
consumer’s mind through over
extension - a phenomenon
called “brand dilution”.
Prof. Carlos Wolff
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 What is Brand
Portfolio?
A company will often introduce
additional brands in the same
product category.
One of the motives for multi
branding is to establish different
features and/or appeal to different
buying motives.
It also enables the company to
lock up more distributor shelf
space and protect its major brand
by setting up flanker brands.
Prof. Carlos Wolff
56
 What is Brand
Portfolio?
If a brand is attacked by a competitor with a value
offer or unique position, any response can risk its
image and brand equity.
The solution is to use a flanker or fighting brand to
fight a competitor, thereby insulating the original
brand from the fray.

Prof. Carlos Wolff 57

 What is Brand
Portfolio?
For example, when Pepsi launched a
clear cola, Coke came out with a
flanker brand, Tab Clear, which
positioned the new sub-category as
having inferior taste.
Philip Morris introduced a discount
brand of cigarettes, Basic, as a no-
frills flanker brand designed to
protect Marlboro and preserve its
premium price position.
Prof. Carlos Wolff 58
 HOW TO MANAGE BRAND
PORTFOLIO?
A brand needs to gain and maintain
relevance, or no amount of
differentiation or loyalty will matter.
Relevance means that the brand will
be considered for a product category
or sub-category and that the product
category or sub-category will be
needed.

Prof. Carlos Wolff 59

 HOW TO MANAGE BRAND
PORTFOLIO?
To become considered, a brand must
have both sufficient visibility and
performance credibility.
Toyota Corolla and Chevrolet Prism
were for many years made to the
same design by the same factory.
The Prism, until it was discontinued,
was discounted more and still had
sales less than one-fourth of Corolla,
because a perceived quality gap had
precipitated a relevance problem.

Prof. Carlos Wolff 60

 HOW TO MANAGE BRAND
PORTFOLIO?
It may, therefore, be wise to invest in
building the fewest number of the
strongest brands needed to cover
and compete in all the desired
markets.
Resist adding new brands that are
not needed, and be disciplined about
removing existing brands from the
portfolio if they are not needed.

Prof. Carlos Wolff 61

 HOW TO MANAGE BRAND
PORTFOLIO?
Of its 250 brands, P&G’s top ten
brands account for half of its sales,
and more than half of its profits.
The bottom 1200 brands in Unilever’s
1600 brand portfolio accounted for
only 8% of the company’s total sales in
1999.
The vast majority of Nestle’s profits
come from a tiny percentage of more
than 8000 brands worldwide.

Prof. Carlos Wolff 62

 HOW TO MANAGE BRAND
PORTFOLIO?
Managing mammoth multi-brand portfolios,
especially within the same product category,
presents following major problems.
• Insufficient differentiation
• Inefficiency
• Lower market power
• Management complexity

Prof. Carlos Wolff 63

 HOW TO MANAGE BRAND
PORTFOLIO?
An effective brand rationalization process has four
essential steps:
• Conduct a brand portfolio audit
• Determine the optimal brand portfolio
• Select appropriate brand deletion strategies
• Develop a growth strategy for the surviving
brands

Prof. Carlos Wolff 64

 HOW TO MANAGE BRAND
PORTFOLIO?
In general there are four criteria for
evaluation of a brand portfolio:
• Brand Equity
• Awareness
• Reputation
• Differentiation
• Relevance
• Loyalty

Prof. Carlos Wolff 65

 HOW TO MANAGE BRAND
PORTFOLIO?
Business Strength
• Sales
• Share/Market Position
• Profit Margin
• Growth
Strategic Fit
• Extendability
• Business Fit

Prof. Carlos Wolff 66

 HOW TO MANAGE BRAND
PORTFOLIO?
Branding Options
• Brand equity transferability: Could the brand
equity be transferred to anther brand in the
portfolio by reducing the brand to a sub-brand?
• Merging with another brand: Could the brand be
aggregated with other brands in the portfolio to
form one brand?

Prof. Carlos Wolff 67

 Brand Portfolio Audit
Market Regional Presence
Brand
Share RegionRegionRegionRegionRegionRegion
(%) 1 2 3 4 5 6
A S
Fun
W
B Value

C
D

F
Top half of the box: Market positionBottom half of the box: Brand positioning
D = Dominant (#1 in the region) Quality; value; upscale; fun; adventurous;
S = Strong (#2 or #3 in the region) Premium; safe; reliable; trustworthy;
W = Weak (#4 or less in the region)aggressive; cheap; etc.
NP = Not present in the region
Prof. Carlos Wolff
68
 HOW TO MANAGE BRAND
PORTFOLIO?
Determine the optimal brand
portfolio
Companies utilize two
complementary processes to
determine optimal portfolio:
• Overall corporate portfolio approach
• Benefits-based segmentation approach
The first approach is a relatively top-
down process.

Prof. Carlos Wolff 69

 HOW TO MANAGE BRAND
PORTFOLIO?
It broadly evaluates the brand portfolio
using a few simple figures such as
minimum sales, market share position,
growth rate, and geographical reach.
The benefits-based segmentation
approach examines the number and
types of need-based segments that exist
within each individual category in which
the firm competes.

Prof. Carlos Wolff 70

 HOW TO MANAGE BRAND
PORTFOLIO?
Since a company must position every
band against an unique segment of
consumers, this bottom-up process helps
manager to determine the optimal brand
portfolio in terms of individual
categories and implementation.
The benefits-based approach works well
for companies where managers want to
rationalize a group of brands that
compete in the same category.

Prof. Carlos Wolff 71

 How to Manage Brand
Portfolio?
 On the other hand, if companies
with hundreds of brands across
categories, want to rationalize
their entire brand portfolio at
one go, then it would be better
to start with the corporate
portfolio-based approach to
determine the overall direction
and then move to the benefits-
based segmentation approach.
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72
 HOW TO MANAGE BRAND
PORTFOLIO?
Select appropriate brand deletion strategies
Companies should sell non-core brands that
will not likely become competitors but could
offer value to others.
Companies should milk for profits those
brands that have some customer franchise but
are neither core to the firm’s direction nor
valuable to others.

Prof. Carlos Wolff 73

 HOW TO MANAGE BRAND
PORTFOLIO?
Companies may safely eliminate minor
brands with poor sales.
To migrate loyal customers, a company
can issue them coupons or samples for
the most adjacent surviving brand in
the portfolio.
Finally company can merge two brands
into one if the lesser brand is still
maintaining significant sales in a core
category.

Prof. Carlos Wolff 74

 HOW TO MANAGE BRAND
PORTFOLIO?
Merging, sometimes referred to as
brand transfer or brand migration,
reduces number of brands without
losing sales because marketing
migrates the associated customers to
the surviving brand.
Depending on the competitive and
corporate pressures, companies
choose between adopting a quick
change versus a gradual brand
transfer strategy.

Prof. Carlos Wolff 75

 HOW TO MANAGE BRAND
PORTFOLIO?
A quick change with a new brand name
works when a firm wants to break
clearly from past.
Example: Sandoz and Ciba-Geigy to
Novartis.
Merged companies can quickly drop one
brand.
Example: Swiss Banks UBS and SBS to
UBS.
This works well when one brand is
significantly stronger than the other.
Prof. Carlos Wolff 76
 HOW TO MANAGE BRAND
PORTFOLIO?
If both brands have strong brand
franchises, then a firm can adopt a
gradual brand migration strategy by
sub-branding or dual branding during
the transition before eventually
dropping the weaker one.
Example: D2 Vodafone in Germany;
Omnitel Vodafone in Italy changed to
Vodafone over a period of two years.
Prof. Carlos Wolff 77
 HOW TO MANAGE BRAND
PORTFOLIO?
Develop a growth strategy for the
surviving brands.
As part of the brand deletion process,
managers must identify opportunities to
build fewer, stronger brands through
enhancements and investments.
Brand enhancement can be done by
migrating useful characteristics from the
deleted brands to the remaining ones.

Prof. Carlos Wolff 78

 HOW TO MANAGE BRAND
PORTFOLIO?
Brand investment redirects the
resources freed from the discontinued
brands to the surviving brands.
By merging brands, companies can
generate substantial savings through
greater economies of scale in supply
chain, sales, and marketing.
Examples: P&G; HUL

Prof. Carlos Wolff 79

 HOW TO MANAGE BRAND
PORTFOLIO?
With growing retailer power and more
global customers, companies cannot
sustain weaker brands and must
embark on brand rationalization.
Brand rationalization should be a top
management concern as in the
immediately short run, it usually
lowers firm’s revenues.
However, at the end brand
rationalization is profitable.

Prof. Carlos Wolff 80

 How to Build both
Business and Brand?
 The brand is not all: it captures
the fame but is made possible
by the business model.
 Brand and business model are
intimately intertwined.
 Dell’s high brand value has
certainly been largely
contributed by Dell’s business
model.
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81
 How to Build both
Business and Brand?
 The goal of strategy is to build a
sustainable advantage over
competition, and brands are one
of the very few ways of achieving
this.
 The business model is another.

There are several alternative

business models: Product
Leadership, Operational
Excellence, and Customer
Intimacy.
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Prof. Carlos Wolff
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