Module 1 B MGMT

You might also like

Download as ppt, pdf, or txt
Download as ppt, pdf, or txt
You are on page 1of 126

Module 1

Brand and Brand management

• Concept of a brand
• Brand Name
• Product versus brand
• Competition and Brand
• Goods & Services brands,
• Retailer & Distributor,
• People & Organization brands
• Brand challenges & Opportunities,
• Brand equity concept, Identity and Image
2

Strategic Branding game changer for a Nation

Copyright (C) 2015 Wiztango Software India Pvt Ltd. All Rights Reserved.
Core Marketing Concepts 3

49%

Marketing
Inbound Outbound
Activities
Primary

Ma
Operations & Services
Logistics logistics
10% Sales

rgin
2% 2% 10%
25%

s
Firm Infrastructure 25%

s
Supporting

rgin
Human Resource Management 1%
Activities

51%

Ma
Technology Development 20%
Procurement 5%

Copyright (C) 2015 Wiztango Software India Pvt Ltd. All Rights Reserved.
Dubai Before 4

Dubai | Abu Dhabi | Ajman| Fujairah | Ras Al-Khaimah | Sharjah | Umm Al-Quwain

• Dubai (UAE) market not on the radars


of the global retail sector.

During the • The nation operated with its network


90s, of Bakaalas

• The typical neighborhood grocery


stores like the local Kirana stores in our
country.

Copyright (C) 2015 Wiztango Software India Pvt Ltd. All Rights Reserved.
Dubai Before 5

Copyright (C) 2015 Wiztango Software India Pvt Ltd. All Rights Reserved.
Dubai Realty check 6

• Dubai One of the seven emirates of Gulf state


of the UAE, would run out of oil in the first
quarter of this century.

• Abu Dhabi, the wealthiest of the emirates,


Realization produces 2 million barrels of oil a day and has
reserves of at least 100 billion barrels (more
than 100 years' worth);

• Dubai produces only 240,000 barrels a day and


has barely 20 years of reserves.

Copyright (C) 2015 Wiztango Software India Pvt Ltd. All Rights Reserved.
Dubai TRANSFORMATION 7

• Operating more like a CEO than a ruler.

• Retail was opened up.

• Dubai Mall, Mall of Emirates, Souk Madinath Jumeirah, Ibn


Batuta Mall and many more.

• The global traveler see the Middle east in a new light as a


destination for shopping and Luxury retail.

Copyright (C) 2015 Wiztango Software India Pvt Ltd. All Rights Reserved.
Dubai VISION 8

The aim has been to create the conditions –


• from homes to hotels,
• from roads to airports,
• from free trade zones to a global financial
centre, and
• from a relaxed social culture to prestigious
sporting events
Sheikh
Mohammed •Persuade MNC to use Dubai as their regional and,
bin Rashid Al in some cases, global head offices,
Maktoum

•To create a successful tourist destination.

Copyright (C) 2015 Wiztango Software India Pvt Ltd. All Rights Reserved.
Dubai TRANSFORMATION 9

Copyright (C) 2015 Wiztango Software India Pvt Ltd. All Rights Reserved.
Dubai TRANSFORMATION 10

Black & Decker, Acer,


Compaq, Daewoo, Nestle,
DaimlerChrysler and Xerox.
Dubai has been equally
effective as a magnet for
regional investment.

Copyright (C) 2015 Wiztango Software India Pvt Ltd. All Rights Reserved.
Dubai SUMMING UP 11

The decision to diversify the economy was made following the


NEED realization that Dubai, would run out of oil in the first quarter of this
century.

To create the conditions - from homes to hotels, from roads to


WANT airports, from free trade zones to a global financial centre, and from
a relaxed social culture to prestigious sporting events

Persuaded international corporations and organizations to use


PRODUCT Dubai as their regional and, in some cases, global head offices, and
to create a successful tourist destination.

Slick and aggressive marketing campaign has made Dubai recognised


BRAND
across the globe and swept aside the competition from rivals in the
EQUITY region.

Copyright (C) 2015 Wiztango Software India Pvt Ltd. All Rights Reserved.
Dubai STRATEGY? 12

Copyright (C) 2015 Wiztango Software India Pvt Ltd. All Rights Reserved.
Branding

• In a Forbes article, “Why Brand Building Is Important,”

• “Brands outlive product cycles….

– No branding, no differentiation.

– No differentiation, no long-term profitability.

– People don’t have relationships with products, they are


loyal to brands.”

• Brand strength often runs parallel to success of Co.


Branding
Apple has mastered this idea.
•Consumers line up buy new products (Watch, iPad, iPhone)
even before all info about products has been provided.

•Created brand where consumers trust that products of the


Co. will be of highest quality and worth the money.

•Current market, able to easily convince consumers that they


have need for product Apple is selling; consumers trust that
Apple knows them enough to suggest good products.

•Trust contributes to consumers’ loyalty and desire to


return for future purchases.
Branding

Brand
Derived From the word
“Old Norse”

Brandr

Meaning

“To Burn”

Owners of Livestock mark their animals To Identify


Branding
Brand
• Greeks & Romans used messages to promote their
wines, pots or metals

• Also used town criers to announce arrival of ship & cargos

• 16th century distillers used branding or burned their names


on the kegs

• In 18th century producer names identified product, the


identity of the producer used to be the brand name

• Smirnoff vodka takes the name from Smirnoff family 1818


Branding

What is a Brand?
Name,
Term,
Sign,
Symbol, or
Design, or a
Combination of them,
Intended to Identify the
Goods & Services of
one seller or a group of
sellers and
to Differentiate them from those
of the COMPETITORS
(American Marketing Association).
Branding
• What is this definition missing?
– It focuses on the physical and tangible aspects of brands

• Branding goes beyond the physical

– Brands are symbols of trust

– They represent (unique) value propositions

– They generate emotional responses

– They can define the consumer and are often aspirational


Branding
Brand
• Many brands took the names of their creators include,
– Rolls-Royce, Sears, Waterman, Mercedes Bens, Ponds,
– Bakers, Bugatti.

• Names of the producers got replaced with


– Names of the Places, Polar, Arctic, Burma
– Names of famous people, Hilton, Tommy Hilfiger
– Names of animals, Kangaroo, Cobra

• Middle of 20th century industrialization mass production the


need for id & offer of consistent quality branding became
important
Branding
Brand Names based on
• People Tata, Porsche automobiles
• Places Singapore airlines, British airways,
• Animals Mustang automobiles, Greyhound buses
• Birds Dove
• Things Shell, Apple computers
• Inherent product meaning Lean Cuisine, Just Juice

• Suggest attributes / benefits Glo floor cleaner,


Comfort mattresses

• Include prefixes/suffixes sound scientific, natural, prestigious


Intel microprocessor
Compaq, Lexus,
Branding

Brand Elements
• Brand elements sometimes called brand identities are
trademarkable devices that serve to identify and
differentiate the Brand

• Brand Elements used to Achieve Identity and Positioning

• Brand Elements are trademarkable devices


– Names logos Symbols
Characters
– Slogans Jingles Packages
Branding
Products versus Brands
• A product is anything we can offer to a market for attention,
acquisition, use, or consumption that might satisfy a need or
want.

• Thus, a product may be a


– physical good like cereal, tennis racquet, or automobile;
– service such as airline, bank, or insurance company;
– retail outlet like dept. store, specialty store, supermarket;
– person a political figure, entertainer, professional athlete;
– org like nonprofit, trade org, or arts group;
– place including a city, state, or country;
– idea like a political or social cause.
Levels of Product Branding
Potential Product
All the transformations the product might go in future

Augmented
Product
Expected Product
Additional
Set of attributes
product attributes ,
buyers normally expect
benefits,
services
Distinguishing from
Generic Product competitors
Containing only those
attributes which
Necessary for functioning
No distinguishing features

Core Product
It is the fundamental Need or Want that consumers
satisfy by consuming the product or Services
Levels of Product Branding
PRODUCT MIX STRATEGIES
Product Levels
Potential

Augmented

Bufori car
Kula-Lumpur
Generic Customized 300/year
900man hours
$250,000

Branded Differentiated
Branding
AC Product levels
Branding

Harvard's Ted Levitt

• “The new competition is not between what companies


produce in their factories

• But between what they add to the factory output in the


form of

• Packaging, Services, Advertising, Customer advice,


Financing, delivery arrangements, warehousing and
other things that people value”
Branding
Products versus Brands

• A brand is therefore more than a product, but one that adds


other dimensions that differentiate it in some way from other
products designed to satisfy the same need.

• These differences may be,


Rational & Tangible Related to product performance
of the brand

Symbolic, Emotional & Intangible Related to what


the brand
represents
Branding

Distinguishing factor

• What distinguishes a Brand from its unbranded commodity


counterpart and gives it equity

• Is the sum total of

– Consumers perception & feelings about products attribute

– How they perform

– About the brand name and what it stands for &

– About the company associated with the brand


Branding

A Branded product may be a

Physical good (Kellogg's Corn flakes)

Service (LIC)

Store (Big Bazaar)

Person (SRK)

Place (Kashmir)

Organisation (CRY)

Idea (Global warming)


Branding
Products versus Brands
• Some products create CA with Product Performance
– Gillette, Merck, Sony, 3M
• This requires
– Continuous innovation,
– Steady investment in R&D,
– Mass marketing practices,
– Rapid adoption of newer technologies

• Some brands create CA thru non product related


means such as ,
– Coca Cola, Channel No5, Marlboro
Branding
John Murphy
• “Creating a successful brand entails blending all these various
elements together in a unique way –
The product or the Service has to be of high Quality &
Appropriate to consumer Needs.
• The Brand name must be appealing and in tune with the customers
Perception of the product,
Packaging,
Promotion,
Pricing,
And all other elements must similarly meet the tests of
Appropriateness
Appeal &
Differentiation”
Branding

Branding goes beyond the physical

– Brands are symbols of trust

– They represent (unique) value propositions

– They generate emotional responses

– They can define the consumer and are often aspirational

– A brand resides in the mind of the consumer – it is a perception


Branding
Brand is more than a Product
Brand
Organizational Brand
Association Personality

Product
Symbols
Scope
Country of
Attributes
origin
Uses
Quality Brand /Customer
User imagery Value relationship
Functional
benefits
Self expressive
Emotional benefits Benefits
Branding
• Product includes characteristics such as
Scope Colgate dental hygiene products
Attributes Filmfare gives Entertainment news
Uses Mahindra make trucks for rough terrain
Quality/Value Tata deliver quality product
Functional benefits Big Bazaar provides extra value

• Brand includes these product characteristics and much


more
User imagery Reid & Taylor
Country of origin Audi German craftsmanship
Org Association 3M innovative company
Brand personality Mountain Dew energy & vitality
Symbols Sunflower Wipro
Brand / Cust relationship LIC
Case 1 Pepsi - Coke
Pepsi battle with Coca cola during 1960 and 1970
saw the gradual reduction in Coke’s dominant market share.

The battle culminated in 1985 when Coke abandoned its


original recipe & introduced New Coke a sweeter formulation
to attracts Pepsi younger crowd.

Cokes customer boycotted New Coke, there was public


outrage & Pepsi became market leader temporarily.
New Coke was soon dropped and the original brought back &
relaunched as Classic Cola and regained the No.1 Spot.

Identify what was the problem with the Coke?


Coca-Cola’s Branding Lesson
One of the classic marketing mistakes occurred in April 1985 when
Coca-Cola replaced its flagship cola brand with a new formula.
The motivation behind change was primarily a competitive one
Pepsi-Cola’s “Pepsi Challenge” promotion had posed a strong
challenge to Coke’s supremacy over the cola market.
Starting initially just in Texas, the promotion involved advertising and
in-store sampling showcasing consumer blind taste tests between
Coca-Cola and Pepsi-Cola. Invariably, Pepsi won these tests.

Fearful that the promotion, if expanded nationally, could take a big


bite out of Coca-Cola’s sales, especially among younger cola
drinkers, Coca-Cola felt compelled to act.
Coca-Cola’s strategy was to change the formulation of Coke to more
closely match the slightly sweeter taste of Pepsi.
Coca-Cola’s Branding Lesson
To arrive at a new formulation, Coke conducted taste tests with an
astounding number of consumers—190,000!
Findings from research indicated that consumers “overwhelmingly”
preferred the taste of new formulation to old one.
Brimming with confidence, Coca-Cola announced the formulation
change with much fanfare.
Consumer reaction was swift , unfortunately for Coke negative.
In Seattle, retired real estate investor Gay Mullins founded the “Old
Cola Drinkers of America” and set up a hotline for angry consumers.
A Beverly Hills wine merchant bought 500 cases of “Vintage Coke”
and sold them at a premium.
Meanwhile, back at Coke HQ, roughly 1,500 calls a day and literally
truckloads of mail poured in, virtually all condemning the company’s
actions.
Coca-Cola’s Branding Lesson
Finally, after several months of slumping sales, Coca-Cola
announced that the old formulation would return as “Coca-Cola
Classic” and join “New” Coke in the marketplace .

The New Coke debacle taught Coca-Cola a very imp, albeit painful
and public, lesson about its brand. Coke clearly is not just seen as a
beverage or thirst-quenching refreshment by consumers.
Rather, it seems to be viewed as more of an American icon, and
much of its appeal lies not only in its ingredients but also in what it
represents in terms of Americana, nostalgia, and its heritage and
relationship with consumers. Coke’s brand image certainly has
emotional components, and consumers have a great deal of strong
feelings for the brand.
Coca-Cola’s Branding Lesson
Although Coca-Cola made a number of other mistakes in
introducing New Coke (both its advertising and its packaging
probably failed to clearly differentiate the brand and communicate
its sweeter quality), its biggest slip was losing sight of what
the brand meant to consumers in its totality.

The psychological response to a brand can be as important as the


Physiological response to the product. At the same time, American
Consumers also learned a lesson—just how much the Coke brand
Really meant to them.

As a result of Coke’s marketing fiasco, it is doubtful that either side


will take the other for granted from now on.
Pepsi - Coke
The problem was Coke had not appreciated the value that
the product as a whole represented to its core customer.

The sum of the core, expected & augmented product


encapsulated as a brand Coca Cola

It drew passion from its customer and was overlooked by


the market researcher when searching for a means to
arrest Pepsi’s growth
Branding

Role of the Brands

What are the benefits of brands? To Consumers

What are the benefits of brands? To the Manufacturer &


Retailers?

How should a Brand name be?


Branding
• Special meaning of brand is it can change
their perception and experience with product

• Brands take on unique personal meanings


Consumers to consumers that facilitate their day to day
like brand for activity & enrich their lives
the following
reasons
• As consumers lives become more complicated,
rushed, time starved the ability of the brand to
simplify decision making & reduce risk is
invaluable
Branding
• Assist people to id their preferred products.

• Reduce levels of perceived risks doing so


improve the quality of the shopping experience
Consumers
like brand for• Help people gauge the level of product quality
the following
reasons
• Reduce amount of time spent making product
based decision, decrease the shopping time.

• Provide psychological reassurance or reward ,


especially for products bought on occasion

• Inform consumers source of product (country)


Branding
For search goods like grocery produce,
•consumers can evaluate product attributes like
Consumers sturdiness, size, color, style, design, weight, and
like brand for
the following
ingredient composition by visual inspection.
reasons
For experience goods like automobile tires,
•consumers cannot assess product attributes like
durability, service quality, safety, and ease of
handling or use so easily by inspection, and actual
product trial and experience is necessary.

For credence goods like insurance coverage,


•consumers may rarely learn product attributes.
Branding
• Given the difficulty of assessing and interpreting
product attributes and benefits for experience and
credence goods,

Consumers
• Brands are important signals of quality and other
like brand for characteristics to consumers for these types of
the following products
reasons
Branding
• Brands can reduce risk in product decisions

• Consumers can perceive many types of risks in


buying and consuming the product such as
Brand Vs
Consumer
– Functional risk
– Physical risk
– Financial risk
– Social risk
– Psychological risk
– Time risk

• Consumers cope with above risks by buying well


known brands and brands with favorable past
experience
Branding
• Enable premium pricing

• Help differentiate Product from competition


Mfrs. Retailers
enjoy the
brands for the • Encourage cross selling to other brands
following owned by the manufacturer
reasons

• Develop customer Loyalty / Retention and


repeat purchase buyer behavior.

• Assist the dev & use of IMC

• Contribute corporate identity programmes


• Provide some legal protection
Branding
• Serve as an Id purpose to simplify product handling
or tracing for the firm.
• Operationally helps to organize inventory and
accounting records
Brand Vs
Firm • legal protection for unique features of product.

• Serves as an IP ensuring firm can safely invest and


reap the benefits.

• Brand loyalty provides predictability and


security demand and creates barriers of entry.

• Powerful means of securing CA


Branding

• Physical goods are traditionally associated


with brands and include
Coca – Cola, Kellogg's, Kodak, Marlboro,
Sony, Mercedes.
Brand versus
Physical
goods • In Pharmaceutical companies prescription
drugs are also being branded and sold thru
advertising.
Branding

• In B2B it is of greater imp as strong brand


depicts a positive image and CA

• In high tech products branding plays a


Brand versus
Physical important role and can be mostly seen in
goods computer related products.

• Some of the world’s most accomplished


and respected brands belong to business
marketers, such as
– ABB, Caterpillar, DuPont, FedEx, GE,
Hewlett-Packard,
– IBM, Intel, Microsoft, Oracle, SAP, and
Siemens.
Branding
INFOSYS
•Infosys IT services company that exploited the outsourcing
trend of companies to outsource its IT functions to specialist
providers.
•It increased its drive-up sales from $100 million in 1999 to
over $2 billion by 2006. Over a 25-year period, 93 % of
Infosys’s projects were delivered on time and on budget,
against an industry average of 30 %.
•Having taken 23 years to achieve the first $1 billion sales, it
took just 23 months to reach $2 billion in sales.
•Once it achieved $2 billion in sales, Infosys rebranded itself to
other businesses as a company that could help them improve
their business models.
Branding
INFOSYS.
•By selling itself as business process transformation partner
rather than just an outsourcing firm, Infosys successfully
differentiated itself from the competition.
•It communicated the change in strategy to 50,000 of its
employees and then formally launched it to targeted
businesses, communicating to C level employees, business
line managers, sourcing executives, and IT staff members.

•The Infosys “think flat” campaign proposed that Infosys could


enable clients to shift from:
Managing information to making money from it;
Achieving customer satisfaction to creating customer loyalty;
Withstanding turbulence to getting ahead during industry cycles; an
Growing passively to driving growth by becoming global producers.
Branding
INFOSYS.
•Infosys’s sales rose from $2 billion to $3 billion in just 12
months. Infosys became the first Indian company to be added
to a major global index when it joined the NASDAQ-100 in
December 2006.

•Infosys announced its March 2013 revenue forecast at


approximately $7.5 billion. It continues to evolve the brand to
appeal to more businesses as a reliable and effective partner.
Branding

Brand versus Persons


• The CEO of technological companies often become a dominant
component of a brand
Apple Steve Jobs
Microsoft Bill gates
Cisco John Chambers
Sun Scott McNeely
Oracle Larry Ellison
Big Bazaar Kishor Biyani
Infosys Narayan Murthy
Reliance Ambani

• Public figures such as politicians, entertainers and professional


athletes compete in some sense for public approval and acceptance
and benefit from conveying a strong and desirable image
Branding
Brand versus Organization

• Organizations often take on meaning thru their programs,


activities and products

• Non profit organization such as American red cross society,


Rotract club, Cancer society, UNICEF have emphasized
marketing.

• National geography

• WWF Panda logo worlds largest private organization


dedicated to nature conservation there are 4.7 million
supporters in 100 countries
Branding

Brand versus Geographic location

• Geographic location like people or products can be branded

• In this case the brand name is fixed by the location actual


name

• The location is linked with desirability factor by creating


awareness and favorable image

• Kerala Backwaters, Japan country of surprises, Dubai


shopping festival
Branding

Brand versus Services

• Amex, British airways, Hotel Hilton, FedEx are all service


brands

• Branding in services is to work on intangibles and highlight


quality which differ with different people

• Brand symbol are important because they convert the


abstract nature of the services to become more concrete

• Branding has also become more emphasized in Financial


and Insurance sector as well.
Branding
Brand versus Services - Professional Services
• Accenture (consulting), Goldman Sachs (investment
banking), Ernst & Young (accounting), offer specialized
expertise and support to other businesses and org.

• Professional services branding is combination of B2B


branding & traditional consumer services branding.
• Corporate credibility key terms of expertise, trustworthiness,
and likability.
• Variability is issue with professional services because it is
harder to standardize the services of a consulting firm

• One big diff in professional services is that individual


employees have a lot more of their own equity in the firm
and are often brands in their own right!
Branding
Brand versus Online Products and Services
•Strongest brands in recent years Google, Facebook, and
Twitter are three notable examples.

•Online marketers now realize the realities of brand building.


– First, any brand, Critical to create unique aspects on
some dimension that is imp to consumers, such as
convenience, price, or variety.

– At the same time, brand needs to perform satisfactorily in


other areas, as customer service, credibility, personality.

•For instance, customers increasingly began to demand higher


levels of service both during and after their Web site visits.
Branding
GOOGLE
•Founded in 1998 by two Stanford University Ph.D. students,
takes its name from a play on the word googol—the number 1
followed by 100 zeroes—a reference to the huge amount of
data online.
•Stated mission is “To organize the world’s information and
make it universally accessible and useful.”

•Co has become market leader in search engine industry


through its business focus and constant innovation.
•Its home page focuses on searches but also allows users to
employ many other Google services.
•By focusing on plain text, avoiding pop-up ads, and using
sophisticated search algorithms, Google provides fast and
reliable service
Branding
GOOGLE

•Google’s revenue traditionally was driven by search ads, text-


based boxes that advertisers pay for only when users click on
them.

•Google is seeking additional sources of revenue from new


services and acquisitions

•Google’s classic application of branding principles has


helped to make it an industry powerhouse.
Branding
Brand versus Nonprofit organizations
•UNICEF need strong brands & modern marketing practices to
help them fundraise & satisfy their org goals and mission.

•Launched its “Tap Project” campaign in 2007, which asked


diners to pay $1 for a glass of New York City tap water in
restaurants, with the funds going to support the org clean
water programs. That was the first time UNICEF had run a
consumer campaign in over 50 years.

•The UNICEF logo was featured on the Barcelona soccer


team’s jersey from 2006 to 2011 under an arrangement in
which the team donated $2 million annually to the org.
Branding
Brand versus Nonprofit organizations
•UNICEF launched another consumer campaign in the UK in
February 2010.

•This five-year “Put it Right” campaign features celebrity


ambassadors for the org and aims to protect the rights of
children.

•One of UNICEF’s most successful corporate relationships has


been with IKEA.

•The partnership, which also emphasizes children’s rights, was


established in 2000 and encompasses direct donations from
IKEA and annual toy campaign, the sales from which directly
benefit UNICEF programs
Branding
Brand versus Sports, Arts, and Entertainment
•Sports marketing has become highly sophisticated in recent
years, employing traditional packaged-goods techniques.

•Sports teams are marketing themselves through a creative


combination of advertising, promotions, sponsorship, direct
mail, digital, and other forms of communication.

•By building awareness, image, and loyalty, these sports


franchises are able to meet ticket sales targets regardless of
what their team’s actual performance might turn out to be.

•Brand symbols and logos in particular have become an


important financial contributor to professional sports through
licensing agreements.
Branding
Brand versus Sports, Arts, and Entertainment
•Branding play valuable function in arts and entertainment
industries that bring us movies, television, music, books.

•These offerings are good ex of experience goods: prospective


buyers cannot judge quality by inspection and must use cues
such as
– the particular people involved,
– the concept or rationale behind the project, and
– word-of-mouth and
– critical reviews.
Branding
Brand versus Sports, Arts, and Entertainment
•Movie franchises Spider Man, James Bond, and Twilight have
established themselves as strong brands by
– combining all these ingredients into a formula that
appeals to consumers and
– allows studios to release sequels (essentially brand
extensions)
– that rely on the title’s initial popularity

– Sequel success is due to the fact that moviegoers


know from the title and the actors, producers,
directors, and other contributors that they can expect
a certain experience— a classic application of
branding
Branding
Brand versus Ideas and Causes
•Ideas and causes have been branded, especially by nonprofit
organizations.

•They may be captured in a phrase or slogan and even be


represented by a symbol, such as AIDS ribbons.

•By making ideas and causes more visible and concrete,


branding can provide much value.

•Cause marketing increasingly relies on sophisticated


marketing practices to inform or persuade consumers about
the issues surrounding a cause.
Branding

Brand Opportunity & Challenges


Brand Opportunity & Challenges Branding
• Savvy customers
• More complex brand families and portfolios
• Maturing markets
• More sophisticated and increasing competition
• Difficulty in differentiating
• Decreasing brand loyalty in many categories
• Growth of private labels
• Increasing trade power
• Fragmenting media coverage
• Eroding traditional media effectiveness
• Emerging new communication options
• Increasing promotional expenditures
• Decreasing advertising expenditures
• Increasing cost of product introduction and support
• Short-term performance orientation
• Increasing job turnover
• Pronounced economic cycles
Brand Opportunity & Challenges Branding

• Consumers today are more aware of


marketing and how it works.

• Today it is more difficult to persuade


customers with traditional communication than
Choosy it was in olden times
Customers

• The consumers WANT from product &


services have changed

• Today it is more important for a brand to be


emotionally connected over and above the
trust worthiness
Brand Opportunity & Challenges Branding

• With line and brand extension there has


been a rise in the numbers of new products
and brands

• Brand name may now be identified with a


Brand number of different products of varying
Proliferation degrees of similarity

• Marketers of brands such as Coke, Nivea,


Dove, Virgin have added a host of new
products under the brand umbrella
Brand Opportunity & Challenges Branding
P&G introduced original Crest toothpaste
in 1955
•Crest Mint 1967
•Advanced formula Crest 1980
•Crest gel 1981
Brand •Crest tartar control 1985
Proliferation
•Crest for kids 1987
•Crest neat squeeze 1991
•Crest baking soda 1992
•Crest for sensitive teeth 1994
•Crest whitening,
•Crest multi care,
•Crest multicare advanced
Brand Opportunity & Challenges Branding
• Erosion of traditional media
• Emergence : Of interactive & non traditional
media, promotion and other communication
alternatives
• Cost : The cost of network Advtg has risen
manifold without increasing the audience size
Media • Clutter : Commercial breaks more, traditional
Fragmentation
60 sec spot is reduced to 15 sec spot raising
the clutter level.
• Fragmentation : The growth of independent
channel leading to erosion of the network
share of audience
• Technology : Facility of remote control
increased surfing of channels reducing the
effectiveness of advertising
Brand Opportunity & Challenges Branding
• One reason marketers have been forced to
use so many financial incentives or discounts
is that the marketplace has become more
competitive

• New competitors have emerged due to a


Increased number of factors, such as the following:
Competition
– Globalization:
– Low-priced competitors:
– Brand extensions:.
– Deregulation:
Brand Opportunity & Challenges Branding

• The cost of introducing a product or


Increased
supporting the existing products have
costs
gone up in comparison to earlier times.
Brand Opportunity & Challenges Branding

• Marketers have to meet the ambitious


target set because of the financial market
Greater pressure
accountability
• Organizational pressure give rise to quick
fix solutions which effect in the long run.
Branding

Brand Policies

There are 3 main strategies

• Individual branding

• Family branding

• Corporate branding
Branding

Individual branding

• This requires that each product offered by an organization is


branded independently of all others.

• Grocery brands offered by Unilever Knorr, Cif, Dove


P&G Fairy, Crest, Head & Shoulders

• Advantages Easy to enter new markets with separate names


If the brand fails or negative other brands are
not damaged.

• Disadvantages Heavy financial cost as the brand needs to


have its own promotional programme & support.
Branding
Family Branding
• It requires that all the products use organizations name, either entirely
or in part.

• Microsoft, Heinz, Kellogg's all incorporate the company name to develop


customer trust across the brand.

• Promotional cost need not be high as ther will always be a halo effect
across all the brands.

• Line family branding is a derivative policy whereby a family branding


policy is followed for all products within a single line.
Bosch is a technology company operating in the automotive, industry,
and home markets. Many of its products are branded Bosch but use line
branding for
Blaupunkt (car entertainment) Qualcast (garden product division)
Branding

Corporate Brands

• Many retail brands adopt a single umbrella brand based on the name of
the organization which is then used at all locations.
Tesco, Carrefour, Wal-Mart.

• Corporate branding strategies are also used in business markets such


as IBM, Cisco, & Caterpillar.

• Financial services such as HSBC, Prudential and First Direct

• Damage to one product can cause problems across the organization


Hitachi, Dell, Apple, Toshiba, Lenova, Sony all recalled (batteries in
laptop could fuse as there were pieces of metal left in their cells during
manufacturing process they had to recall 6 million batteries and the cost
was $265million and had to revise income and profit forecast)
Branding

Brand Extension

• It is a way of capitalizing on the recognition, goodwill and positive


association of an established brand.

• Mars successfully leveraged their confectionary bar into the ice cream
market.

• Harley Davidson rugged and masculine image was Not successful in


extension when started selling wine coolers, baby clothes, fragrances
Branding
Packaging
There are two main roles that packaging has to perform

Functional It refers to the need the product during transit


For display on the shelf till consumption.
Preventing form damage,
tampering, &
deterioration
Providing convenience to the customer
Adding towards perceived value by informing
size,
ease of opening,
convenience of storing &
transportation
Branding

Packaging
• Communicative
To make the brand choice
Package contents features, usage, warnings
To develop positive attitudes towards the product

• Packaging can also be used as a means of identification

• It is also associated with Positioning of the brand


Branding

Labeling

• Labels are used to deliver information about usage


• Help promote a brand and stand out in competition
• Enable the brand owners to comply with the regulations
and statutory warning
Case 2 - Redesigning Sunny D
Sunny D was once a highly successful fruit juice brand Apart from being
given lots shelf space in super markets it received high media coverage
because of its dubious nutritional content. It was said to have a high sugar
content, too many preservatives, and a vast amount of e-based artificial
coloring . It was also low in fruit contents and vitamins. After an initial few
years of spectacular success under the ownership of P&G the brand faded
and was sold to Sunny Delight Beverages Company in 2004. Part of SDBC
task was to revitalize the brand and to re establish it in the market for all the
right reasons not the wrong ones. The product was reformulated with a new
recipe that included more fruit juice, the removal of artificial coloring, and a
reduction in sugar. To help reposition the brand and communicate
everything that was new about Sunny D new packaging and labeling was
required. Using a parents advisory panel the Sunny D brand provides
copious and explicit information about the nutritional content even to the
point of including a guideline daily amount thought to be first for a soft drink
Branding

Case 2- Redesigning Sunny D

• Why do you think this brand was successful despite the poor quality
of the original contents?

• How would u design the label and packaging and what key points to
be considered?
Branding

Types of Brands
• There are three main types of Brands

1. Manufacturer

2. Distributor

3. Generic
Branding
Types of Brands
Manufacturer Brands

• Persil , Heinz, Coca – cola, Cadbury's, are strong manufacturers


brand.

• They are promoted heavily

• Customers develop preferences based on performance, experience,


communications, and availability .

• When customers shop they use images they have of various


manufacturers combined with own experience and seek their
preferred brand.

• Retailers who choose not to stock certain major manufacturers brand


run the risk of losing the customer.
Branding
Types of Brands
Distributor or Own label brands

• The term refers to the identities and images developed by the


wholesaler, distributors, dealers and retailers who make up the
marketing channel.

• Retailers such as Big Bazaar, More, Sainsbury, Next, have all created
strong brands.

• This brand strategy offers many advantages to both the manufacturer


who can use excess capacity

• Retailers can earn higher margins and develop strong store image

• Conflict like Coca Cola had to defend their brand when Sainsbury new
cola drink was too similar to the established design
Branding
Types of Brands
Generic Brands

• These are brands that are sold without any promotional material or
any means of identifying the company.

• The packaging only displays information required by law.

• The only form of identification is the relevant product category (Flour)

• As no promotional support is required are less priced as compared to


a brand.

• Though popular in 1990 now declined and available only in


pharmaceutical products.
Glaxo Nutrition ActiGrow, protein supplement for Children.

Health snack Horlicks Nutribar for Young Adults.

Chilled Doodh, a flavored milk drink, in April.

Eno Mausambi, a new flavor of the popular Antacid.

Junior Horlicks biscuits for Toddlers,

Women’s Horlicks for Women,

Mother’s Horlicks for Lactating Mothers.


Brand & brand Management

Brand Equity Concept

It stresses the importance of the role of the brand in marketing strategies

Differences in outcome arises from the added value endowed to a product


as a result of past marketing activity for a brand

This value can be created for a brand in many different ways

BE provides a common denominator for interpreting marketing strategies


and assessing the value of a brand

There are many different ways in which the value of the brand can be
exploited to benefit the firm
Brand & brand Management

Brand Equity

• It is the measure of the value of a brand


• It is an assessment of a brand, wealth sometimes
referred to as goodwill

There are three parts associated with BE


1. Brand value based on financial and accounting base

2. Brand strength measuring the strength of the consumers attachment


to a brand

3. Brand description represented by specific attitudes customer have


towards the brand.
Strategic Brand Management Process

Mental maps, Points of Parity &


Identify & Establish
Differentiation, Competitive frame of
Brand Positioning references
Strategic Brand Management Process
Mental maps, Points of Parity &
Identify & Establish
Differentiation, Competitive frame of
Brand Positioning references

Plan & Implement Mixing and matching brand elements,


Brand Marketing Integrating brand marketing activities,
Programs leveraging secondary associations

95
Strategic Brand Management Process
Mental maps, Points of Parity &
Identify & Establish
Differentiation, Competitive frame of
Brand Positioning references

Plan & Implement Mixing and matching brand elements,


Brand Marketing Integrating brand marketing activities,
Programs leveraging secondary associations

Measure & Interpret Brand audits, brand tracking, brand


Brand Performance equity, share and financials

96
Strategic Brand Management Process
Mental maps, Points of Parity &
Identify & Establish
Differentiation, Competitive frame of
Brand Positioning references

Plan & Implement Mixing and matching brand elements,


Brand Marketing Integrating brand marketing activities,
Programs leveraging secondary associations

Measure & Interpret Brand audits, brand tracking, brand


Brand Performance equity, share and financials

Brand portfolios, brand extension


Grow & Sustain
strategies, brand reinforcement and
Brand Equity revitalization
97
Brand DNA - Identity, Image, Personality and Position
Brand DNA - Identity, Image, Personality and Position

• Brand DNA

– Unique components of a brand


• Relates the uniqueness of the brand to people’s lives and needs/wants

– The heart, soul, spirit and essence of a brand

– It is manifested in every fibre and cell of the brand

– The core of the brand


Brand Brand Brand
Brand
Brand Mission Promise Values Identity
Vision
Why brand Implicit How company wants
exists contract How vision
customers to view
and
brand
promise are
delivered

Brand DNA Components


Adapted From: Barlow & Stewart (2005).
Brand DNA - Identity, Image, Personality and Position

Brand
Brand DNA Implementation
Brand Sponsor
Vision/Mission External
Brand Champions
Values Stakeholders
Direction, Energy, Programs
Promise Brand
Support, Resources
Brand Identity Delivery

Organization

Terminology
• Vision is what the organization wants to be “when it grows up”.

• Mission is how it’s going to get there.

• Brand DNA is how it is going to live its life.

Brand DNA – the “core”, “essence” – has to be authentic,


not made-up
Brand DNA - Identity, Image, Personality and Position

Internal External
Brand DNA Branding
Branding
Vision Marketing Communication
Internal Communication
Mission Price, Place
Brand Champions
Promise Sales and Channel
Brand Engagement
Values Employee-Customer
Living the Brand
Identity Interaction
Brand Position
Brand Image Brand Identity Part of the brand identity
How the company wants and value proposition to
How the consumer sees
the brand to be be actively
the brand
perceived communicated to the
target audience

Positioning
Act of designing the company’s offer and image so that it
occupies a distinct and valued place in the target
customer’s mind
Positioning Guidelines

• Competitive Frame of Reference


– Define category membership

• Points of Difference
– Emphasize sustainable competitive advantage (SCA), unique
selling proposition (USP)

• Points of Parity
– Establish that the brand is “as good” as the competition on these
“necessary, but not sufficient” conditions
Brand DNA - Identity, Image, Personality and Position

• Brand Identity
– Unique associations the company wants to create

– Associations represent what the brand stands for (i.e., brand


promise)

Brand Position

Brand Identity Brand Image


Brand DNA - Identity, Image, Personality and Position

Extended Identity

Core Identity
Brand Identity System (Aaker 1996)
Strategic Brand Analysis
Customer Analysis Competitor Analysis Self Analysis

Brand Identity
Brand Brand Brand Brand
as a Product Organization as a Person Symbol

Value Proposition Credibility


Functional Emotional Self-Expressive Support other Brands

Brand-Customer Relationship

Brand Position
1. Subset of Identity/Value Proposition 2 . Target Audience
3. Communicate 4. Establish Uniqueness & Competitive Advantage

Execution
Tracking
Alternatives Symbols/Metaphors Testing
Brand DNA - Identity, Image, Personality and Position

Customer Analysis
• Motivations

• Trends

• Unmet Needs

• Segments

• Profile
Brand DNA - Identity, Image, Personality and Position

Competitor Analysis
• Brand Image

• Brand Identity

• Strengths

• Weaknesses
Brand DNA - Identity, Image, Personality and Position

Self-Analysis
• Existing Brand Image

• Brand Heritage

• Strengths/Capabilities

• Organizational Values
Brand Identity Structure

• Core Identity
• The essence of the brand, often timeless
• Associations that usually do not change over time/space

• Extended Identity
• Elements that provide texture, richness and completeness to the
brand identity

• Value Proposition
• Relative Price
• Functional / Emotional / Self-expressive Benefits
• Makes the case for why customers should buy this brand
Brand Personality

• Brand Personality is a set of human characteristics associated


with a brand
– This can include age,
– gender,
– socioeconomic status as well as
– human personality traits like
• Warmth,
• Concern,
• Liveliness and
• Trustworthiness

• Why use brand personality?


Brand DNA - Identity, Image, Personality and Position
Betty Crocker - From 1921 - 2002
Source: Aaker (1996), Building Strong Brands.
Brands With a Global Impact

Source: brandchannel.com
Know UR Brand
1. This brand name was coined after the word Dyspepsia meaning
stomach ache or indigestion.
2. This brand is one of the largest selling single detergent brand in the
world.
3. This bank gave India its first ATM in 1987
4. Dalsey, Hillblom & Lynn the three friends started this company in 1969
5. This is the single largest entity to have sold more Ray Ban glasses
than any one in the world
6. He is the first Finance minister of India manufacturing pressure
cookers
7. This quiz contest is India’s longest running national school quiz
8. Hospital was named after the first spacecraft that landed on the moon
9. On the basis of National readership survey 2005 this is the largest
read daily in the world with a readership of 21.2 million.
10. The Indian rice brand to be sold in over 45 countries and selling at
TESCO and Wal-Mart.
Know UR Brand

1. Pepsi
2. Nirma
3. HSBC
4. DHL
5. Shoppers stop
6. TTK Prestige T T Krishnamurthy
7. Bourn vita quiz contest
8. Apollo hospitals
9. Dainik Jagran
10. Kohinoor Basmati Rice

You might also like