brand concept final

Brand Management

Just What is Brand?• It is 8:30 am and I am lacing up my Nike trainers ready for the morning jog.

• My Apple I-Pod is primed with a stash of Eminnem tracks and there’s a can of Pepsi at the ready for when the thirst hits.

• In half an hour I’ll be back. With my new Gillete shaver at the ready. I’ll shower and then head for airport. I have some shopping to do before I board the Jet airways Plane to take me to a holiday destination that I booked through makemytrip.com.

• I will grab a burger for lunch in Mcdonalds or maybe just a coffee in starbucks and eat later in Pizza hut.

Just What is Brand• One things for certain: by the end of the day, I’ll be exposed to a

multitude of companies and celebrities, each one vying for attention and yelling in my ear – “Choose me, not her, choose us, not them”.

• What is it about these businesses that grabs my attention? Is it just the price of their goods or services? Is it the products themselves? The answer is a resounding “NO” on both counts.

• Some of these companies command a much higher price than their rivals, yet still out shell them everyday. And the products are not always better quality – often it’s the same product with just a different label, glued or stitched in place when the factory bell rings and assembly line changes. Is there a massive difference between an I- pod and every other MP3 player on sale? Not if its just down to playing an MP3 track. How can starbucks charge so much for a coffee when if its thirst you’re looking to quench, you can buy a cup of tea or coffee at most small café’s

What is a Brand?

•Old Norse word – brandr – to burn.

•Branding basis – people, place, animal or bird, scientific term, and things or objects.

•Branding contain – inherent product meaning, and attributes or benefits.

•Branding could be done for product (physical good, retail store, person, organization, place, or an idea.

•Brand = product + other differentiating dimensions (physiological and psychological)

Product Levels?

Core benefits – fundamental need or want.

Generic product – basic offering.

Expected product – normal expectation from a product in the market.

Augmented product – differentiating and distinguishing attributes, benefits, or related service.

Potential product – ideal and in future.

Branding is Universal (anything can be branded)

•Commodity – Chicken, Coffee, salt, fruits, vegetables, water, etc.

•Physical good - Consumer products; Business to Business; High-tech products.

•Services – KPMG, Banks, Airlines, Energy firms, etc.

•Retailers and distributors – Big Bazaar, Wal-Mart, private or store brands.

•On-line product and services – flicker, e-bay,myntra etc.

•Sports, Arts, and Entertainment – Cricket, M F Hussain, shows like Indian Idol

•Geographic Locations – Australia, Alaska, switzerland, Incredible India

•Ideas and Causes – Red Cross, Child Labour, etc

Determinants of Brand Longevity

•Vision of the mass market?

•Managerial persistence?

•Financial commitment?

•Relentless Innovation?

•Asset leveraging.

Some Challenges…

Savvy consumers, maturing market, decreasing brand

loyalty.

Brand proliferation, complex brand families, .

Media fragmentation, eroding traditional media, new

options, changes in advertising and promotional expenditures.

Increased competition, difficulty in differentiation, too many

private labels.

Increased cost, increasing trade power.

Increased accountability, job turn-over.

Types of Brands

Differentiating features of brands

• How purchased/used/experienced. CG products are traditionally dependent on wide distribution networks. However, through the use of e-commerce many have started to sell direct to consumers.

• Frequency of purchase/use/experience.CG products are bought much more frequently, as the name suggests, than big ticket items.

Differentiating features of brands

• Amount of thought/research/comparison typically undertaken prior to purchase/experience. The consumer decision process will vary according to how much risk they perceive in buying a product or service – the risk will depend on price, quality variance, trust in the brand and other factors.

• Degree of customization available.The intangibility of services makes them much more suited to customization than CG products, which offer a wide variety but little customization.

All brands have one goal– to enhance their perceived value.

Different types of brands• Product Brands• Service Brands• E-brands• Media Brands• Not-for-profit Brands• Nation Brands• Government Brands• Global Brands• Organization Brands

Product brands: FMCG

Characteristics:• Cost: Inexpensive.• Balance of product to service

Almost exclusively tangible product, although service component can be present (eg, customer-care lines).

• How purchasedMainly through conventional FMCG distribution

networks – supermarkets, other shops, vending machines, relatively large volume outlets.

Product brands (FMCG: cont.)

• Frequency of purchase : Frequent.• Degree of research/thought/search prior to

purchaseTypically none, the brand is part of the consumer

repertoire, likely to be habitual.• Degree of customisation

Very little. Often wide range of variants but no real customisation for individual customers.

Product brands (Big Ticket Items)

Characteristics:• Cost: Expensive.• Balance of product to service

Service is likely to take on a more important role, before, during and after purchase.

Product brands (Big Ticket Items)

• How purchasedTraditionally through specialised outlets(luxury = high status outlets) but increasingly more widely distributed. Frequency of purchase: Infrequent.

• Degree of research on purchase– A great deal of thought, research and comparison goes into the

decision, although with luxury goods, investment is more– emotional than financial.

• Degree of customization Can be considerable.

Service brands

Service brands are characterized by the need to maintain a consistently high level of service delivery throughout hundreds, or even thousands of staff. Although a product component may be involved, it is essentially the service that is the brand.

These are more complex than product brands for two reasons:

• because it is always harder to brand something you can’t touch

• because they are delivered directly by employees.

Service Brands

Characteristics:• Intangibility

Service brands can seldom be tried out in advance, which requires the establishment of a greater degree of trust.

• Inseparability of production and consumptionServices cannot generally be stockpiled in advance but are produced and consumed in real time.

• InconsistencySince humans are usually instrumental in delivering services.

Different categories of service brands:

• Classic service brands eg, airlines, hotels, car rentals and banks.• Pure service providers eg, member associations • Professional Service Brands

eg, advisors of all kinds – accountancy, management consultancy.• Agents eg, travel agents and estate agents.

(This category of a brand has become endangered by the rise of the Internet.)• Retail brands

– eg, supermarkets, fashion stores and restaurants.– Retail Brands are complex and multifaceted.– Consumers have a much more involved and interactive experience with

retail brands. The meanings of retail brands are more heavily– Derived from consumer’s direct experience rather than from advertising.

Brands from other spheres• E-brands

– The Internet is a medium that presents new challenges for brand owners, but the underlying principles of branding are unchanged.

– The Internet is developing a more direct style of relationships between customers and brand owners, and all those interactions

– give an opportunity for strengthening the brand identity.

• A distinction needs to be made between ‘e-tailers’,- e-brands’ primary activity is to deliver physical products like Amazon.com- e-brands focus on delivering a service or experience- In both cases, however, it is the intangibles, the brand values that

will attract online customers.

• Media brandseg, newspapers, magazines, television channels.

• Not-for-profit organization brands– Non-profits are often at a disadvantage when it comes

to branding. • they don’t have the deep pockets of corporations

who can afford to hire brand specialists• they don’t have staff whose job it is to protect the

integrity of the brand, and promote it at every turn. • But successful branding can have a great effect on

raising awareness of the charity and its mission, and on fund-raising

• Nation brands– New ways of thinking lead to countries being positioned as

tourist destinations, enhancing status of goods and services produced, and aiding under-developed countries.

• Government brands– Governments and political parties often have strong brands as

they are centerd on passionately held core values, Branding is important in both securing votes and in international diplomacy.

• Global brands– Companies have been marketing their products and brands in

different countries for decades. However they were almost always marketed according to local conditions.

Features of Global Brands[Quelch, 1999]

• Strong in home market – cash flow generated from domestic market enables the company to fund a global roll-out

• At least minimum level of awareness, recognition and sales all over the world

• The products meet the same human needs world-wide, even though the physical product may be adapted locally (eg, McDonald’s).

• Consistent positioning• Consumers value the provenance of the brand, its country of origin,

and even associate the country’s expertise with specific products (eg, German cars, American jeans).

• Focus on a specific product category• Use single corporate brand name.

Act local, think global

“While there are global brands that have aglobal presence, they don’t have global

consumers. The brand’s core values can beglobal, although the brand needs to have local

relevance. To bring it to life you need to beflexible and re-enact the brand as appropriate.

It is the think global, act local strategy.”

[Gavin Emsden, Nestle UK’s head of consumerinsight and planning for beverages]

The decision whether to standardize or localize?Several other factors may affect the decision:

• Regulatory environments vary from country to country, especially in pharmaceuticals, financial services and utilities.

• The Internet allows adoption of a standardized global strategy without investing in distribution systems in each country.

• The threat of parallel imports from low-price to high-price countries.

Organization brands

• What is an organization brand? – It is neither a product/service nor a corporate brand, it is wider

than both. - It relates to all stakeholders and in many cases is rarely

advertised.

• The organization brand represents the impression that people inside and outside the organization have.

Strategic brand management process

Strategic Brand Management Process

Identifying and Establishing Brand Positioning and Values

Planning and Implementing Brand Marketing Programs

Measuring and Interpreting Brand Performance

Growing and Sustaining Brand Equity

Brand Identity

BRAND IDENTITY

BRAND IDENTITY IS A UNIQUE SET OF BRAND ASSOCIATIONS THAT THE BRAND STRATEGIST ASPIRES

TO CREATE OR MAINTAIN THESE ASSOCIATIONS REPRESENT WHAT THE BRAND STANDS FOR & IMPLY A PROMISE TO CUSTOMERS FROM THE ORGANIZATION

MEMBERS

BRAND IDENTITY( contd.)

BRAND IDENTITY SHOULD HELP ESTABLISH A RELATIONSHIP BETWEEN THE BRAND & THE

CUSTOMER BY GENERATING A VALUE PROPOSITION INVOLVING FUNCTIONAL,

EMOTIONAL, OR SELF-EXPRESSIVE BENEFITS

BRAND IDENTITY• Brand identity is a bundle of mental and functional associations with the

brand. Associations are not “reasons-to-buy” but provide familiarity and differentiation that’s not replicable getting it. These associations can include :– signature tune (for example - Britannia “ting-ting-ta-ding”)– trademark colors (for example - Blue color with Pepsi)– logo (for example - Nike)– tagline (for example - Apple’s tagline is “Think different”), etc.

• Brand identity is the total promise that an organization makes to consumers. The brand can be perceived as a product, a personality, a set of values, and a position it occupies in consumer’s minds.

• Brand identity is all that an organization wants the brand to be considered as.

• It is a way of externally expressing a brand to the world.

BRAND IDENTITY (contd.)

CONSISTS OF 12 DIMENSIONS OF BRAND ORGANIZED AROUND 4 PERSPECTIVES(Also called Aekar Model of Brand Equity):

• As a product: product scope, product attributes, quality/value, uses, user, country of origin

• As an organization: organizational attributes, local vs. global• As a person: brand personality, brand-customer relationships• As a symbol: visual imagery/metaphors, heritage

CORE & EXTENDED IDENTITY:• Core identity: central timeless essence of the brand – remains

constant as brand travels to new markets/products• Extended identity: includes various brand identity elements,

organized into cohesive & meaningful groups

A McDonald’s Brand IdentityMCDONALD’S, WHICH DOES ABOUT $26 BILLION OF BUSINESS

IN 79 COUNTRIES, HAS ONE OF THE MOST SUCCESSFUL BRANDS.

HOWEVER, THE BRAND AS SYMBOLIZED BY THE GOLDEN ARCHES HAS A RICH IDENTITY THAT PROVIDES SEVERAL

LINKS TO THE CUSTOMER

McDonald’s Core Identity• Value offering: McDonald’s provides value as defined by the product, special

offers, & buying experience given the price

• Food quality: consistently hot, good-tasting at any McDonald’s in the world

• Service: fast, accurate, friendly, & hassle free

• Cleanliness: operations are always spotless on both sides of the counter

• User: families & kids are a focus, but serves a wide clientele

McDonald’s Extended Identity• Convenience: Most convenient, quick-service restaurant – located close to where

people live, work, & gather; features efficient, time-saving service; & serves easy-to-eat food

• Product scope: fast food, hamburgers, children’s entertainment

• Sub-brands: Big Mac, Egg Mc Muffin, Happy Meals, Extra Value Meals, …

• Corporate citizenship: Ronald McDonald children’s Charities, Ronald McDonald House

• Brand personality: family oriented, all-American, genuine, wholesome, cheerful, fun

• Relationship: family/fun associations are inclusive, McDonald’s is part of the good times

• Ronald McDonald’s Children’s Charities engender respect, liking, & admiration

• Logo: Golden Arche

• Characters: Ronald McDonald; McDonald’s dolls & toys

McDonald’s Value Proposition

• Functional benefits: good-tasting hamburgers, fries, & drinks that provide value, extras such as play grounds, prizes, premiums, & games

• Emotional benefits: Kids – fun via excitement of birthday parties, relationship with Ronald McDonald & other characters, & feeling of special family times

• Adults – warmth via link to family events & experiences reinforced by the McDonald’s emotional advertising

Brand Identity Prism• The brand identity prism, as the name suggests comes in the form a prism with 6

different traits at each end of the prism. These 6 traits are:

• Physique – Physique is the basis of the brand. It may include product features, symbols and attributes.

• Personality – Personality defines what personality will the brand assume if it were a person. Personality includes character and attitude.

• Culture – Culture takes a holistic view of the organization, its origins and the values it stands for.

• Relationship – The strength of the relationship between the brand and the customer. It may represent beliefs and associations in the human world.

• Reflection – What does the brand represent in the customers mind or rather the customer mindset as reflected on the brand

• Self image – How does the customer see himself when compared to the brand. Example – A customer might see himself capable or incapable of buying a BMW car.

Eg- Pepsi

• Pepsi’s brand identity has transformed over the years, but primarily it has remained as a youthful brand which empowers people to enjoy their youth.

• The external and internal indicators of Brand Identity have been modified many times.

• Its logo, trademark, etc have undergone many changes over time but the distinct identity of Pepsi has been maintained.

• We also see a consistency in brand positioning for Pepsi as a Youth oriented brand.

• Its tagline in India “YEH HAI YOUNGISTAN MERI JAAN” exemplifies that essence.

Kapferer’s Brand Identity Prism (Pepsi)

Sources of Brand Equity (Pepsi)• Pepsi’s primary sources of brand equity are derived from its unique name with an

American connotation to it.

• It’s logo, a sphere with 3 different colors aids brand recall.

• The brand endorsers over the years, starting from Shahrukh khan, Sachin Tendulkar to Ranbir Kapoor, M.S Dhoni have been a major source of equity for the brand

• The brand has always looked for young faces in order to relate with its youth target audience

• Huge consumer base of more than 200 million across the world.

• Its innovative Campaigns are also a predominant source of Pepsi’s Brand Equity in India.

Sources of Brand Equity (Pepsi)• Several campaigns like “Youngistaan ka Wow” targeted at Youth and

celebrating their audacious self belief, thus bringing the brand closer to its Customers

• ‘The Game’, a series of five gaming-based television films developed specially for the ongoing IPL season

• “Change the Game” and “First Ball ka Kaptan” considering the cricket world cup and T-20 world cup have been successful in leveraging the love for the game and reinforce the association of the game with Pepsi

• The CSR activities of the company also generate a lot of Brand equity, It’s the only soft drink manufacturer with a positive water balance in India.

• Pepsi’s wide Product Portfolio helps in increasing the depth and Breadth of Brand Awareness.

Brand Equity

Brand Equity• Brand Equity is the value and strength of the Brand that decides its

worth.

• It can also be defined as the differential impact of brand knowledge on consumers response to the Brand Marketing.

• Brand Equity exists as a function of consumer choice in the market place.

• The concept of Brand Equity comes into existence when consumer makes a choice of a product or a service. It occurs when the consumer is familiar with the brand and holds some favorable positive strong and distinctive brand associations in the memory.

Measures of Brand Equity• Brand Equity can be determined by measuring:

– Returns to the Share-Holders.– Evaluating the Brand Image for various parameters that are

considered significant.– Evaluating the Brand’s earning potential in long run.– By evaluating the increased volume of sales created by the

brand compared to other brands in the same class.– The price premium charged by the brand over non-branded

products.– From the prices of the shares that an organization commands in

the market (specifically if the brand name is identical to the corporate name or the consumers can easily co-relate the performance of all the individual brands of the organization with the organizational financial performance)

Brand Equity Assets and Liabilities

• Brand equity has been defined as a set of brand assets and liabilities linked to a brand, its name, and its symbol that add to or subtract from the value provided by a product or service to a firm and/or to that firm's customers

• If the brand's name or symbol should change, some or all of the assets or liabilities could be affected and even lost, although some might be shifted to a new name and symbol


The assets and liabilities on which brand equity is based will, according to Aaker (1991), differ by context. However, they can be grouped into five categories:– Brand Loyalty– Brand Name Awareness– Perceived Quality– Brand Associations– Other Proprietary Brand Assets

Brand Equity Assets and Liabilities• Brand Loyalty:

– For any business, it is expensive to gain new customers and relatively inexpensive to retain existing ones, especially when the existing customers are satisfied or happy with the brand.

– Competitors may even be discouraged from spending resources to attract already satisfied customers.

– Higher loyalty means greater trade leverage; since customers expect the brand to be always available.

• Brand Name Awareness:– People will often buy a familiar brand because they are comfortable

with the familiarity or they assume that a brand that is familiar is probably reliable and of reasonable quality.

– When consumers feel uneasy about a product's name, they will avoid the product – and that translates into the loss of sales.

– Brand names should be easy for customers to visualize, and this involves pronunciation and spelling

Brand Equity Assets and Liabilities• Perceived Quality:

– A brand will have associated with it a perception of overall quality, which is not necessarily based on knowledge of detailed specifications.

– The quality perception may take on somewhat different forms for different types of industries.

– Perceived quality means something different for Compaq or IBM than for Coca-Cola or Pepsi.

– Perceived quality will directly influence purchase decisions and brand loyalty, especially when a buyer is not motivated or able to conduct a detailed analysis.

– It can also support a premium price, which, in turn, can create gross margin that can be reinvested in brand equity.

– Perceived quality can be the basis for a brand extension. If a brand is well-regarded in one context, then the assumption will be that it will have high quality in a related context.

Brand Equity Assets and Liabilities• Brand Associations:

– The underlying value of a brand name often is based upon specific associations linked to it.

– The associations, for example, of the car brand Jaguar may make the experience of owning and driving one "different".

– If a brand is well positioned upon a key attribute in the product class (such as technological superiority), then competitors will find it hard to attack.

– If they attempt a frontal assault by claiming superiority via that dimension, there will be a credibility issue.

– They may be forced to find another, perhaps inferior, basis for competition. Thus, an association can be a barrier for competitors.


• Other Propriety based Assets:– This fifth category represents such other proprietary brand

assets as patents, trademarks, and channel relationships. – Brand assets will be most valuable if they inhibit or prevent

competitors from eroding a customer base and loyalty. – These assets can take several forms. For example, a trademark

will protect brand equity from competitors who might want to confuse customers by using a similar name, symbol, or package.

– A patent, if strong and relevant to customer choice, can prevent direct competition. A distribution channel can be controlled by a brand because of a history.

Designing marketing activities from a

branding perspective

4 major drivers of the new economy

Digitalization &

Connectivity

(through internet, intranet, mobile devices)I

Disintermediation &

Reintermediation

(via new middlemen of various sorts)II

Customization &

Customerization

(through tailored products & ingredients provided to

customersto make product themselves)

III

Industry Convergence

(through the blurring of industry boundaries)IV

Impact to…

Integrating marketing programs and activities

Impact to…

Personalizing Marketing• Experiential marketing• One-to-One marketing• Permission marketing

Product Strategy

Perceived Quality and Value

• Perceived quality: is customers’ perception of the overall quality or superiority of a product or service compared to alternatives and with respect to its intended purpose

• It is how consumers form their opinions of the quality and value of a product

General dimensions of the product• Performance: primary characteristics of product (low,

medium, high or very high)

• Features: secondary elements of a product that complement primary characteristics

• Conformance: degree of the product meet specifications

• Reliability: consistency of performance over time

• Durability: expected economic life of product

• Service ability: ease of servicing the product

• Style and design: appearance or feel of quality

Brand Intangibles

• Brand attitude may also depend on more abstract product imagery. ex. Symbolism, personality

• 3-D Marketing (McKinsey Consulting) emphasizes 3 product benefit dimensions:• Functional benefits: product and performance attributes.

Ex. quality • Process benefits: ease of access to product info.,

convenient transaction.• Relationship benefits: value based on personalized

service, strong emotional relevance, differentiated loyalty rewards.

Relationship Marketing• Relationship marketing: is based on the premise that

current customers are the key to long term success.

• 3 important relationship marketing issues:

• Mass Customization

• After marketing

• Loyalty Programs

Pricing Strategy

Consumer Price Perceptions

• Price Bands: a range of acceptable prices that indicate the flexibility and breadth marketers can adopt in pricing their brands within a tier

• In many categories, price may infer the product quality. And it becomes an important factor in purchase decisions.

• Value-based pricing strategies: attempting to sell the right product at the right price to better meet consumer wishes

Value Pricing• The objective of value pricing is to uncover the right blend of

product quality, product costs and product prices that satisfies needs and wants of consumers and the profit targets of the firm.

• Effective value-pricing strategy should strike the proper balance among the following:

–Product design and delivery–Product costs –Product prices

Everyday Low Pricing

• Everyday low price (EDLP) has received increased attention as a means of determining price discounts and promotions over time.

• Pricing approach - - the nature of price discount and promotions over time that maintains consistently low

• Be careful!!! Creating a brand association to “discount” or “don’t pay full price” diminished brand equity

Channel Strategy

Channel Strategy

• Marketing channel are defined as “set of interdependent organizations involved in the process of making a product or service available for use or consumption”

• Channel strategy includes the design and management of intermediaries such as wholesellers, brokers, and retailers.

Channel Design• Direct channel: means selling through personal

contacts from the company to prospective customers by mail, phone and etc.

• Indirect channel: sell through third-party intermediaries such as agents, wholesalers, retailers or dealers.

• Winning channel strategies – “integrated shopping experience” that combines physical stores, internet, telephone and catalogs.

Example: Nike (sells shoes, apparel, and equipment product)

• Retail: Nike products are sold in retail locations such as shoe stores, sporting goods stores, department stores, and clothing stores.

• Branded Nike Town Stores: Nike Town Stores, located in prime shopping avenues in metropolitan centers .

• Niketown.com: Nike’s e-commerce site allows consumers to place internet orders for a range of products.

• Catalog retailers: Nike’s product appear in numerous shoe, sporting goods, and clothing catalogs.

• Outlet Stores: outlet stores feature discounted Nike merchandise.

• Specialty stores: Nike equipment from product lines such as Nike Golf, Nike Hockey.

Direct channels are preferable when…

Product information needs are high Product customization is high Product quality assurance is important Product lot size is important Logistics are important

Indirect channels are preferable when…

A broad assortment is essential Availability is crucial After-sales service is important

Indirect Channel• Pull and Push Strategies• Channel Support (Marketing Partnership)– Retail segmentation•Retailers are customers too.•Different retailers may need different product mixes, special delivery system, or customized promotions.

– Cooperative advertising•Co-op advertising: a manufacturers pays for a portion of the advertising that a retailer runs to promote the manufacturer’s product.

Direct Channel• Company-Owned Stores– Show the product in the way that the company want– Some company stores might lack of skills, or resources

• Other means– Department stores– Via phone, mail, or email

• Web Strategies

1. Take a trip to a department store. Evaluate the in-store marketing effort. Which categories or brands seem to be receiving the biggest in-store push? What unique in-store merchandising effort do you see? (5 marks)

2. Take a trip to a supermarket. Observe the extent of private label brands. In which categories do you think private labels might be successful? Why? (5 marks)

Customer based Brand equity

Concept of Customer based Brand Equity

• Customer-based brand equity– Differential effect (brand equity arises out of

differences in consumer responses)– Customer brand knowledge– Customer response to brand marketing

• A brand has positive customer based brand equity when consumers react more favorably to a product and the way it is marketed when the brand is identified than not.


• Customers will be more accepting of a new brand extension for a brand with positive customer based brand equity.

• Less sensitive to price increases and withdrawal of advertising effort

• And more willing to seek the brand in a new distribution channel.


• A brand has negative customer based brand equity if consumers react less favorably to marketing activity for the brand compared with an unnamed or fictitiously named version of the product.


• Differential effect : brand equity arises out of differences in consumer responses.

• The difference in response are a result of consumer’s knowledge about the brand, what they have learned, felt, seen and heard about the brand .

• Brand equity ultimately depends on what resides on the minds of the consumers.


Customer’s differential responses which makes brand equity are reflected on :

• Perceptions• Preferences and behavior related to all aspects of

brand marketing.

Customer based brand equity model


• Brand Salience:- It's means broad awareness of the brand. - The first step in building a brand equity is the brand awareness that

contains two parts: - brand recognition (how easily customer identify a brand after

exposing some cue or a physical product) - brand recall (how easily customer recall the brand without showing a

cue while making purchase decision or thinking the product category).We must consider both the breadth and depth of the brand

awareness; the depth is that how likely it is for a brand element to come to mind and a breadth is the range of purchase and the situations in which the brand comes to mind of the consumers.

A brand we easily recall has a deeper level of brand awareness and breadth is related to the product knowledge in the memory of the consumer.

Customer based brand equity model • Brand performance:

It is describes how well the product or service meets customers' more functional needs. Brand performance is directly related with the features of the product that differentiates it from others. Often, the strongest brand positioning relies on performance advantages of the brand. Five important types of attributes and benefits often underlie brand performance, as follows:– Primary ingredients and supplementary features– Product reliability, durability, and serviceability– Service effectiveness, efficiency, and empathy– Style and design– Price

• Customers view performance or measure performance in three ways: - - 1. Reliability: measures consistency of performance over time and from purchase to purchase,2. Durability; means the expected economic life of the product3. Serviceability; the ease of repairing the product if needed.


Brand Imagery:• It is the second part of brand meaning and also called the emotions part

of brand meaning (Brand performance is the logic part). • It mainly depends on the intrinsic properties of the product or service,

including the way how well the brand attempts to meet the customers' psychological or social needs.

• Imagery refers to more intangible aspects of the brand, and customers can form imagery associations directly from their own experiences or through advertising or some other source of information indirectly.

• Intangible aspects of the brand are as:- User profiles- Purchase and usage situation- Personality and values- History, heritage and experiences- Demographics factors (gender, age, race, income, family) affect the first two types of aspects while psychographics affect on the personality and values.


Brand judgments:• Brand judgments are customers' personal opinions about and

evaluations of the brand, which customers form by putting together all the different brand performance and imagery associations.

• Customers usually make four types of judgments as:– Brand Quality: brand attitudes generally depend on specific attributes

and benefits of the brand.– Brand Credibility: judgments about the company or organization

behind the brand. Customers may see that whether the brand is competitive, innovative or market leader. The company always consider customers' priorities in mind and create interest and fun so that customers enjoy while consuming the brand.

– Brand Consideration: customers think or consider the brand while making purchase decisions.

– Brand Superiority: customers view the brand as unique and better that other.


Brand Feelings:• These are customers' emotional responses and reactions to the brand.

The emotions evoked by a brand can become so strongly associated that they are accessible during product consumption or use.

• The following are six important types of brand-building feelings.– Warmth: the brand makes consumers feel a sense of calm or peacefulness.– Fun: makes consumers feel amused, lighthearted, joyous, playful, cheerful,

and so on– Excitement: makes consumers feel energized.– Security: the brand produces a feeling of safety, comfort, and self-assurance.– Social approval: consumers feel that others look favorably on their

experience, behavior and so on.– Self-respect: consumers feel a sense of pride, accomplishment, or fulfillment

while using the product.


Brand Resonance:• The final step of the model focuses on the ultimate relationship and level of the

identification that the customer has with the brand. Brand resonance describes the nature of the relationship.– Behavior loyalty: in terms of repeat purchase and the amount or share of category volume

attributed to the brand.– Attitudinal attachment: customers should go beyond having a positive attitude to viewing the

brand as something special in a broader context.– Sense of community: customers feel kinship or affiliation with other people associated with

the brand.– Active engagement: brand loyalty occurs when customers are engaged, or willing to invest

time, energy, money or other resources in the brand beyond those expended during purchase or consumption of the brand.

• Consumers while making purchasing decisions or choosing the brand, always use between two approaches or listen the brain (make the decision) in two ways:– Cognitive-based approach (logics)– Affective-based approach (feelings)


If we look the above fig. CBBE pyramid, we have seen that there are two paths or ways from brand salience to brand resonance and consumer always choose one from them.


• Cognitive-based approachBrand salience – Brand performance – Brand

judgements – Brand resonanceConsumers mainly focus on the performance of the

brand and give importance to the features and benefits of the brand (tangible parts) while making decisions. So marketers must consider the needs of customers who uses this approach while developing brands.

• Eg- Mobile brands, focus on attributes and features mainly; Hightech products that must demonstrate features by the company


Affective-based approachBrand salience – Brand imagery – Brand feelings – Brand resonance

• Consumers more focus or interested in intangible aspects of the brand and attach the brand and develop feelings from their experiences. Marketers must focus on intangible aspects of the brand if they plan to touch/play with the emotions of consumers.

• Eg- - Coca-Cola uses the emotional approach while attracting consumers and so

successful that it has capture the first position in the top brands' ranking of the world and has brand equity about 67 billion dollars.

- Surf Excel (daag ache hain!!), touchs the emotions of the customers by developing campaigns that contain fun, excitement and ability to do things without worrying of clothes getting dirty.

- Mountain Dew ( Darr ke aage jeet hai!!) creates excitement and courage to do things that you fear.

Brand Knowledge

Making a brand strong: Brand knowledge

• Brand knowledge is the key to creating brand equity, because it creates the differential effect that drives brand equity.

• Brand knowledge consists of a brand node in memory with a variety of associations linked to it. (Associated network memory model)

Making a brand strong: Brand knowledge• Brand knowledge structures depend on . . .

– The initial choices for the brand elements

– The supporting marketing program and the manner by which the brand is integrated into it

– Other associations indirectly transferred to the brand by linking it to some other entities

Brand knowledge – making a brand strong

• Brand knowledge consists of 2 components– Brand awareness and Brand image

• Brand awareness : strength of the brand node or trace in memory which can be measured as the consumer’s ability to identify the brand under different conditions.

Brand knowledge – making a brand strong

Brand image : is consumer’s perceptions about a brand as reflected by the brand associations held in consumer memory.

Brand associations for Apple computers “ User friendly, Creative”

Eg : Mc Donald’s- Quality, service, cleanliness and value, convenience, Ronald Mc Donald for kids

Sources of brand equity

• Customer based brand equity occurs when the consumer has a high level of awareness and familiarity with the brand and holds some strong, favorable and unique associations in memory.

Brand awareness consists of• Brand recognition• Brand recall


• Brand recognition :is consumer’s ability to confirm prior exposure to the brand when given the brand as a cue.

• Brand recall: is the consumer’s ability to retrieve the brand from memory when given the product category, the needs fulfilled by the product category or a purchase or usage situation as a cue.


• If consumer decisions are made at the point of purchase, then brand recognition is more important.

• If consumer decisions are mostly based on settings away from the point of purchase, then brand recall is more important. Eg : Services, Online brands.

• Consumers must actively seek the brand and retrieve it from memory when appropriate.

Advantages of brand awareness

• Learning advantages: Brand awareness helps in the formation and strength of the associations that make up the brand image.

• Consideration advantagesRaising brand awareness increases the likelihood

that the brand will be a member of the consideration set.

Establishing Brand awareness

• Creating brand awareness means increasing the familiarity of the brand through repeated exposure.

• Creating a positive brand image takes marketing programs that link strong, favorable, and unique associations to the brand in memory.

Establishing Brand awareness

• Advertising, promotion , sponsorship , event marketing, publicity and public relations and outdoor advertising – can increase familiarity and awareness of that brand element.

• Repetition increases brand recognizabilty.• Brand recall requires linkages in memory to

appropriate product categories.Jingle, logos, characters, packaging aid recall.

Strength of brand associations

• Depends on– Brand attributes : are those descriptive features that

characterizes a product or service.– Brand benefits : are the personal value and meaning

that consumers attach to the product or service.

Some Branding Strategies

Branding Strategy

• Leveraging the power of the brand name to cover the market more effectively– Brand associations

• Why do we do it?– Phenomenally expensive to create and promote a new

brand name (at least 100 – 150 million dollars)– Too many brands out there– Increase productivity of current marketing programs

Case 1

• Your brand has a respectable market share but you want it to grow. What do you do? – Address segment needs more precisely

• How can you use the equity of the brand name to address segment needs even better?– Sub-branding / umbrella branding

Sub-branding

• Creating new brands which are part of the parent brand family – expressed as suffixes of the parent brand.

• e.g Nike Air Jordan is a sub-brand of Nike which is the parent brand. Air Trigo, Air Mohawk are sub-brands of Nike Air.

• Apple I-Pod, I-Pod Mini, I-Pod Shuffle and now the I-Pod Nano

Umbrella branding

• When you have many sub-brands, each linked to a common brand, then the common brand is known as the umbrella brand

• E.g. Ford Taurus, Ford Explorer, Ford Focus, Ford Ranger, Ford Five Hundred, Ford Freestyle, Ford Expedition, Ford Thunderbird, etc.

Case 2

• Your brand has a respectable market share and you want to protect it from growing competition. What do you do?– Address that section of the market which does not

buy your product

• How can you attract customers who do not buy into your brand’s equity?– Flanker branding

Flanker Brand

• Different brand name – same product– Extension of an existing brand to create another

product or brand with increased market share. The new product may be a different size, flavor, or type but still falls within the same category of products

• E.g. Thumps Up and Coca Cola in India

Case 3

• Your brand is strong in your current market. The market is saturated and you are looking to diversify. What do you do?– Identify another product and give it the same

brand name• If the new product is in the same product line

– Line Extension• If the new product is from a completely

different product line – Brand Extension

Brand Extension

• Same brand name, new product line e.g. Reebok shoes and Reebok water. Nike shoes and Nike casuals.

• The concept of congruence determines the success of a brand extension strategy. E.g. Johnson’s baby powder and Johnson’s baby oil – high congruence. But imagine Lysol toilet bowl cleaner and Lysol toothpaste!!!

Line Extension

• Same brand name, different product in the same product line. – E.g. Ivory soap and Ivory shampoo; IBM PCs and

IBM laptops – Line extensions are safer strategies than brand

extensions since congruence is always higher.

Case 4• Your brand is sold in the B2B market as a component of

another product. You want the brand to get consumer recognition and equity. What do you do?– Tell consumers about your brand’s presence in the final product

• Ingredient branding: Branding an ingredient of the main brand, which is often manufactured by a different company.

• E.g. Intel Inside is an ingredient brand on IBM, Dell, Compaq, etc. computers

Case 5

• You have a strong brand but want to penetrate the market even better. What do you do?

• Complementary Branding OR Co-branding – when two or more mutually reinforcing brands get together to jointly promote themselves (one is not an ingredient of another).

• E.g. Nike and Apple

Eg – Nike and Apple• Both Nike and Apple are mature in their own field. • Nike targeting people who loves sport especially running, at the same time they

enjoy music and also wants to track their physical condition during the exercise. • According to this, Nike developed a series of products called Nike+. • At the same time, Apple developed a tracking chip that can perfectly fit Nike's

running shoes (Temporal 2011). • The only thing that people need to do is insert the chip into Nike+ running shoes

and turn on their iPod nano or iPhone's relevant function during the exercise. • It provides users with instant information on time, distance, speed, and calorific

burn rates. • The chip can even track your physical condition through the song you are

listening. • The data will be transfered from the chip in the shoes to runner's iPod nano or

iPhone. • Now people can easily find Apple's Nike+ chip in Nike's retail outlets and Nike is

also selling iPod nano in some of its retail store (Temporal 2011).• Apple is also offering a Nike sport music section on its iTunes music store,

featuring lists of songs chosen by well-known athletes.

Product-Market Matrix

NEW

OLD

OLD NEW

Product

Market

DiversificationBrand extension

Product DevelopmentCo-branding

Ingredient branding

Market DevelopmentBrand extensionLine extension

Market PenetrationSub-branding

Flanker brandsCo-branding

BrandName

ProductLine

EXISTING

EXISTING

NEW

NEW

LineExtension

FlankerBrand

Brand Extension

Diversification

Product Line-Brand Matrix

Brand Image

Brand Image

Brand Identity – is what the brand managers think about the brand. It is the cause.

• Ex: It is communicated to customers in many ways like advertising, packaging, performance of the brand, after sales service, etc.

Brand Image – is what the customers think about the brand. It is the effect. It is the essence of all the impressions or imprints about the brand that have got imposed on the consumer’s mind.

• Ex: Head n’ Shoulders – Anti-Dandruff shampoo

Error – failure of the brand to deliver its promises, word of mouth, litigation filed against the brand expectations of the customer, emotional associations of the individual customer with the brand.

• Ex: Ineffective whitening cream.

Imagery – is the customer seen from the perspective of the product.

• Ex: The imagery of the user of ponds is an Indian woman who is an achiever and is confident to step out and take the world on. Thus, Ponds has a secular imagery since it goes against the tradition and gives a new dimension to the beauty and womanhood.

• Brand Networking Technique – a drawing of network diagram based on the consumers experiences about the brand. The name of the brand is written in a circle at the center and is connected with the other circles by lines which carry a ‘+’ or ’-‘ sign indicating their favorable and unfavorable experience with the brand.

• Ex:

Focus Groups/Focus Group Discussion – used to effectively identify images perceived by the consumers for the brand in focus.

• Ex: Photo Sort, wherein customers are asked to chose photos that best represents the products/brands.

Constructive TechniquesWord association – the brand name or advertisement slogan is given

and consumers are asked to state the things that come to their mind.

• Ex: LG “Life’s Good”

Sentence Completion – is a slight modification where consumers are given an open-ended statement.

• Ex: “I use Nokia mobile because…”

Scenario Projection – respondents are shown some scenarios and asked to sate their responses.

• Ex: Respondents may be shown a scene where a group of youngsters are chatting and sharing ‘Ruffles’ potato wafers. They may then be asked to imagine themselves to be a part of the crowd and asked questions relating to the experience of having ‘Ruffles’ in that situation

• Factor Analysis – is then used to identify the primary factors, which influence the image of the brand. It is a data reduction technique and hence the initial set of variables in the questionnaire would be grouped into appropriate factors. The factors which explain the maximum variability of the sample could be considered as those explaining the image of the brand.

• Ex: Hypothetical table, which indicates the perception of patients towards H-World, the chain of hospitals. (1-Partially Agree, 5-Completely Agree)

Variables Rating

Satisfactory timings for outpatients

5

Prescribed medicines are satisfactory

3

Consulting after surgery is done satisfactorily

1

BRAND PERSONALITY

Introduction

• Brand identity and brand image helps brand managers to formulate strategies to make consumers relate to the product in a much easier way

• Brand Personality- it is based on the premise than consumers prefer something that exhibits their characteristics or their ideal values.

Some Indian Examples of Brand Personality

The devil of “Onida” represents high technology and proved to be one of the successful brand personalities in India.

• Sunsilk in India Sunsilk has a caring, nurturing, gentle femininePersonality. The adverstisement, packaging, and nature of the product convey the same.

Brand Anatomy of Coke

Essence:Youth

Benefit: Joyous Environment

Attribute: A Frizzy Drink (Vivaciousness)

Brand Personality Analysis of Santro car

Sensory Emotional Rational

SmallLightFresh

Bubbly

Light-HeartedConvenient

YouthfulDependable

Fun Car

ManoeuvrableQuick

When it necessary to have a brand personality

• Brand personality is important when the product is socially conspicious ( products like automobile, clothing) or when the availability scarce ( as in the case of luxury goods) or when it is complex product ( in case of hi-tech products, consumers rely on image rather on the features of the product which is a bit difficult to comprehend) or when the target audience is highly self-concious.

Tools to Build/ Understand Brand Personality

• Brand Personality ScaleThe five main personality factors as

identified by Aaker are sincerity, excitement, competence, sophistication, and ruggedness.

Sincerity Characteristics

Down to Earth Family –oriented, Small town, Blue-collar, All American, Conventional

Honest Sincere, Real, Ethical, Thoughtful, Caring

Wholesome Original, Ageless, Clasic, Genuine, Old-fashioned

Cheerful Sentimenteal, Friendly, Warm, Happy

Excitement

Daring Trendy, Exciting, Offbeat, Flashy, Provocative

Spririted Cool, Young, Lively, Adventurous, Outgoing

Imaginative Unique, Humorous, Surprising, Artistic, Fun

Up-To-Date Independent, Contemporary, Innovative, Aggresive

Competence

Reliable Hard-working, Secure, Efficient, Trustworthy, Careful

Intelligent Technical, Corporate, Serious

Successful Leader, Confident, Influential

Sophistication

Upper Class Glamorous, Good Looking, Pretentious, Sophisticated

Charming Feminine, Smooth, Sexy, Gentle

Ruggedness

Outdoorsy Masculine, Western, Active, Athletic

Tough Rugged, Strong, No-nonsense

Analysis using brand personality scale

• Three Models to Build Brand PersonalityAakers states the 3 models namely as:1.Self-expression Model

-states that the consumer sees the brand as the kind of person he/she wishes to be

Example:This is the case with Royal Enfield’s Bullet. The rider is

considered to be very masculine when he rides the bike. Bullet’s personality is one that represents a “macho” character.

• Three Models to Build Brand Personality2. Relationship Basis Model

- is liking to associate with a personality exhibited by the brand drives the purchase. The consumer wants to establish friendship with the brand and the brand need not represent their characteristics or their aspirational values.

Example:‘Eureka Forbes’ is seen as a friend for life and

would fit this explanation of brand personality

• Three Models to Build Brand Personality3. Functional Benefits Representation model

-the brand personality is used as a vehicle to state the benefits of the brand.

Example:Devil Onida

• Building Brand Personality via the 4 P’s and Packaging

The 4 p’s of mktg- product, price, place and promotion along with packaging needs to be effectively handled to build a personality.

Relationship between consumers and brand personalityBrand / Product Related Activity Cues Obtained

Keeps repositioning its brand No stable personality

Same character kept unchanged Consumers get comfortable with the personality

High price and exclusive distribution

Sophisticated

Frequent Promotions Uncultured and Cheap

Sponsors relevant shows Helpful and Supportive

Offers a lot of warranty Reliable and Dependable

• Building Brand Personality Bottom-upThis method takes an entirely different

route. The personality here is not used to convey the identity, rather it intacts what the consumers want from a brand of that category. It uses four-step processing defining the target audience, finding out what they need, want and like, build a consumer personality profile, and creating the product personality to match that profile.

• Building Brand Personality Bottom-up

1.Direct elicitation techniques- the consumers are given a questionnaire, which contains statements describing the brand users along with the characteristics of the brand.

Building Brand Personality Bottom-up

2. Indirect elicitation techniques- techniques such as word association, sentence completion, scenario projection psychodrama, photosor, personification, personalit/uniqueness traits, brand marriage, obituary, collage and analogies and methapors used to find out what kind of personalities are generally asociated with the brand.

Any Questions?

brand concept final

Documents

big ticket items

expected economic life

proprietary brand assets

brand equity arises

respectable market share

brand equity assets

brand knowledge making

brand identity prism