INTRODUCTION TO BRANDING

Chao O
20/12/2012
Why Brand?
 Why do companies such as Coca-Cola,
Microsoft, IBM and Disney seem to achieve
global marketing success so easily? Why does it
seem such an effort for others?
 Why do we, as consumers, feel loyal to such
brands that the mere sight of their logo has us
reaching into our pockets to buy their
products?
The meaning of brands
 Brands are a means of differentiating a
company’s products and services from those of
its competitors.
 There is plenty of evidence to prove that
customers will pay a substantial price premium
for a good brand and remain loyal to that
brand. It is important, therefore, to understand
what brands are and why they are important.
The Importance of Brands
 McDonalds sums this up nicely in the following
quote emphasizing the importance of brands:
 “…it is not factories that make profits, but
relationships with customers, and it is company
and brand names which secure those relationships”
 Businesses that invest in and sustain leading
brands prosper whereas those that fail are left to
fight for the lower profits available in commodity
markets.
Coca-Cola
 “If Coca-Cola were to lose all of its production-related
assets in a disaster, the company would survive. By
contrast, if all consumers were to have a sudden lapse
of memory and forget everything related to Coca-Cola
the company would go out of business.”

 Coca-Cola
 What is a brand?
 One definition of a brand is as follows:
 “A name, term, sign, symbol or design, or a
combination of these, that is intended to identify
the goods and services of one business or group of
businesses and to differentiate them from those of
competitors”.
 Interbrand - a leading branding consultancy - define
a brand in this way:
 “A mixture of tangible and intangible attributes
symbolized in a trademark, which, if properly
managed, creates influence and generates value”.
 Branding Service Product
 A service company needs to make choice in terms of Brand
name, Associated symbols, Multiple branding or Umbrella
Branding, etc.
For example Bank account name something or generic
name
Interesting experiments form ING Vysya bank name their
saving account as Orange
Citibank bank called saving account as Suvidha.
ICICI uses form of co-branding for different product
Life insurance = ICICI Prudential
General insurance = ICICI Lombard
 Branding Service Product
 The basic service product should be augmented with
appropriate brand elements and association.
 To create a distinctive identity in the consumer’s mind,
backed by consistently superior delivery to keep customers
on your side service brand may need constant upgradation.
 Service marketer always needs to keep thinking of all
potential services for example: door collection of bills could
be an option convenient to many subscribers with a receipt
delivered at home if the newspaper boy can do it, why can’t
organized service provider?
 Branding Service Product
 For new service as well as existing service ,the service feature
that a marketer intends to offer should be clearly identified.
For Instance, a restaurant should identify the menu that it
will offer to its customers.
 Brand ambassadors for various services:
Amitabh Bachchan : ICICI Bank Services, Gujarat Tourism,
Aishwariya Rai: Coca-cola
Sachin Tendulkar: VISA Card
MS Dhoni: Aircel
A R Rehman: Airtel
Abhishek Bachchan: Idea
Katerina Kaif: Lux, Panasonic, Spice Telecom
 Cont…
A brand can convey up to 6 levels of meanings:
 Attributes
 Benefits
 Values
 Culture
 Personality
 User
Brand Equity
 Brand Equity is a set of assets linked to a brand’s name
and symbol that adds to the value provided by a
product or service to a firm and/or that firm’s
customers
 “Brand equity” refers to the value of a brand. Brand
equity is based on the extent to which the brand has
high brand loyalty, name awareness, perceived quality
and strong product associations. Brand equity also
includes other “intangible” assets such as patents,
trademarks and channel relationships.
Brand image

 “Brand image” refers to the set of beliefs that

customers hold about a particular brand. These
are important to develop well since a negative
brand image can be very difficult to shake off.
Brand extension
 “Brand extension” refers to the use of a successful
brand name to launch a new or modified product in a
new market. Virgin is perhaps the best example of how
brand extension can be applied into quite diverse and
distinct markets.
Branding gives the seller several
advantages

 Seller’s brand name and trademark provide legal

protection of unique product features
 Branding gives the seller the opportunity to attract a
loyal and profitable set of customers.
 Branding helps the seller segment markets.
 Strong brands help build corporate image, making it
easier to launch new brands and gain acceptance by
distributors and consumers.
Benefits of Branding to A BUYER
 Help buyers identify the product that they like/dislike.
 Identify marketer
 Helps reduce the time needed for purchase.
 Helps buyers evaluate quality of products especially if
unable to judge a products characteristics.
 Helps reduce buyers perceived risk of purchase.
 Buyer may derive a psychological reward from owning the
brand, IE Rolex or Mercedes.
 1. Coca-Cola

 $67,000 million
 Based in U.S.
 Flagging appetite for soda has cut demand for Coke, but the
beverage giant has a raft of new products in the pipeline that could
reverse its recent slide.
2 Microsoft

 $56,926 million
 Based in U.S.
 Threats from Google and Apple haven't yet offset the power of its
Windows and Office monopolies.
 3 IBM

 $56,201 million
 Based in U.S. Having off-loaded its low-profit PC business
to Lenovo, IBM is marketing on the strategic level to
corporate leaders.
4.GE

 $48,907 million
 Based in U.S. The brand Edison built has extended its reach from ovens
to credit cards, and the "Ecomagination" push is making GE look like a
protector of the planet.
5.Intel

 $32,319 million
 Based in U.S. Profits and market share weren't the only things
slammed by rival AMD. Intel's brand value tumbled 9%, as it
loss business from high-profile customers.
6.Nokia

 $30,131 million
 Based in Finland .Fashionable designs and low-cost models
for the developing world enabled the mobile phone maker
to regain ground against competitors.
7.Toyota

 $27,941 million
 Based in Japan. Toyota is closing in on GM to become the world's
biggest automaker. A slated 10% increase in U.S. sales this year will
help even more.
8. Disney

 $27,848 million
 Based in U.S. New CEO Robert Iger expanded the brand by buying
animation hit-maker Pixar and beefing up digital distribution of TV shows
through the Internet and iPods.
9.McDonald's

 $27,501 million
 Based in U.S. A new healthy-living marketing campaign—and the
premium-priced sandwiches and salads that came with it—have led
to a fourth year of sales gains.
10.Mercedes-Benz

 $21,795 million
 Based in Germany The new S-Class sedan and M-Class SUV are
helping repair a tarnished quality reputation. High costs and weak
margins will take longer to fix.