BRAND EQUITYBRAND IDENTITY PRODUCT LINE EXTENSIONS BRAND EXTENSIONSPRODUCT MIX DECISIONS

BRAND EQUITY

BUILDING STRONG BRANDS

BUILDING STRONG BRANDSBRAND STRENGTH= DIFFERENTIATION * RELEVANCEBRAND STATURE=ESTEEM*KNOWLEDGEESTEEM BASED ON PQKNOWLEDGE CUSTOMER NOT ONLY AWARE OF BRAND BUT ALSO UNDERSTANDS WHAT THE BRAND STANDS FOR.

BUILDING STRONG BRANDSHigher Esteem than knowledge means brand has unrealized potential .eg National Geographic,3 M.Low Esteem with higher knowledge-more people know what brand stands for. Exxon, MTV, Cigarette , Alcohol brandsLoosing penetration, serving market that has polarized opinion.

BUILDING STRONG BRANDS

BUILDING STRONG BRANDS1.Brand Identity-how you aspire to be perceived based on core identity while Brand Image is how you are perceived

2.Value Proposition-consider emotional and self expressive benefits as well as functional benefits

3.Brand position-part of Brand identity and Value proposition

4.Execution-communicate the Brand Identity and Position

BUILDING STRONG BRANDS5.Consistency over time

6.Brand system-consistent and synergistic

7.Brand leverage-extend brands and develop co branding

8. Tracking Brand equity-awareness, perceived quality ,loyalty ,associations

9.Brand responsibility

10.Invest in Brands

Good Brands Help Build the Corporate Image

Family - Brand Decision

Manufactures who brand their products face further choices. Four-brand name strategies can be distinguished:

1.Individual Brand Names : This policy is followed by Procter & Gamble (Tide and Genesco Inc. LUX & LIRIL, by HUL, ).

2. A Blanket Family for all products : This policy is followed by Heinz and General Electric, Tata,Bajaj

3. Separate Family Names for all products. This policy is followed by Sears ( Kenmore for appliances, Kerrybrook for women's clothing, and Homart for major home installations),.

4.Company Trade name combined with industrial product names "This policy is followed by Kellogg's (Kellogg's Rice Krispies and Kellogg's Raisin Bran).

MULTI BRANDING STRATEGY

When and why we should use ??

BRAND EQUITY / BUILDINGThe Role of Sponsorship The Role of WebThe Role of PersonalityThe Role of Non Media/Advtg

An Overview of Branding Decisions

BRAND IDENTITYBrand Identity-how you aspire to be perceived based on core identity

while Brand Image is how you are perceived

THE PRISM OF IDENTITY

The Prism of Brand IdentityPhysique-Combination of Independent characteristics including Logo which may be either prominent or dormant ;it is the brand basis, is a necessity, forming only the first stage in brand construction . Physical Features of a Brand -Associationseg Asian Paints- Gatoo Air India MAHARAJA, Mercedez Logo

The Prism of Brand IdentityPersonality-

Each Brand has personality. It acquires a character. We identify the brand with a person; we gradually form a picture of that person by the in which he speaks of products or services.

The easy way to bestow personality on a brand is to provide it with a spokesperson, a star, or an animal.

Advtsg Firm Euro RSCG make Physique & Personality ,two major pillars of Brand Communication

Eg Provogue jeans Binami Cements

The Prism of Brand IdentityCulture INTERNAL

The brand has its own culture from which every product derives. It implies a system of values ,a source of inspiration and brand energy.

A Basic principles governing the brand in its outward signs (product and communication)Apple-the product of California culture ,symbolizes new frontiersMercedes personifies German values, with order strength prevailing.The three box bodywork and overall symmetry Adidas embedded in collective culture ( sports ,soccer) while Reeboks or Nikes highlighting virtues of IndividualismCoca cola- American ,Toyota Japan, Evian French Culture

The Prism of Brand IdentityRelationship ---brand is a relationship. It often provides the opportunity for an intangible exchange between persons; esp in service sectorEXTERNAL

The Prism of Brand IdentityReflectionA brand reflects customers image ,the target audience image

The Prism of Brand IdentitySelf image-customers self imageIs the target own internal mirror.

BRAND REINFORCEMENT STRATEGIES AND

BRAND REVITALIZING STRATEGIES

BRAND EQUITY & MEASUREMENT OF BRAND EQUITY

BRAND EQUITY

1. Assets & Liabilities

2. Core Values

Assets

A) Brand Loyalty - Inertia existing user has to continue use of a particular brand even if the switching costs are low.

Advages :

- reduces the vulnerabilities to competitors actions.

- greater Trade leverage.

- provides brand exposure & reassurance to new customers.

B) Name Awareness

C) Perceived Quality

D) Brand Associations

- basic Attributes

- benefits

- relative price economy

- use / application

- user / customer

- celebrity / person

BRAND EQUITY

- Life Styles / Personality

- Product class

- Competition

- Country / geography

- Intangibles

(E)Proprietary Assets

Patents, Trade Marks, Logos etc.

Brand equity ..... Soul

Product ..... body (not carried away...)

eg. Life buoy.... health protection not just red carbolic... Soap.

(2)Core Values - Hierarchy

-Attribute based : Nirma - Low price, adequate, clearing

-Rational benefits -

-Emotional benefits

-Realm of Values

Higher up in this hierarchy the core values of a brand

Less risk of being threatened by me -too brands.

MEASURE BRAND EQUITY

1) Price premiums generated

2) Replacement cost - cost of establishing comparable

3) Stock price movements

4) Future earning - discounted present value of all the future earnings.

5) The BRAND EQUITY TEN

Brand Equity Measure1.Refelect Brand Equity, tap full scope of BE.AWARENESS,PERCEIVED QUALITY,LOYALTY,ASSOCIATIONS

2.Reflect the Asset value ,focus on sustainable advantage not easily duplicated by competitorsTruly drives the market ie price, sales and profit3. Sensitive4. Can be applied across brands, product categories and markets

INTERBRANDS TOP BRANDSLEADERSHIPSTABILITYMARKET GROWING OR STABLE SALESINTERNATIONALTREND- SALES OF BRAND SUPPORT- INVESTMENTPROTECTION- LEGAL TM

TOP 10 BRANDSCOCACOLAKellogsMc DonaldsKodakIBM.

PERCEIVED VALUE MODEL

PRODUCT MIX DECISIONS PRODUCT LINE EXTENSIONS BRAND EXTENSIONS

PRODUCT LINE

Group of products - closely related

perform similar function.

- sold to the same customer group/segment.

- marketed thro the same channel

- make up a particular price range

Additional items in the same product category

....

new flavours, forms, ingredients.

.... Different Packaging.

( Volume ( may Cannibalize .

PRODUCT MIX WIDTHThe concept of product mix and product line depth applied to selected Procter & Gamble products.

Product line depth

Detergents

Toothpaste

Bar Soap

Deodorants

Disposable diapers

Coffee

Ivory Snow

Gleem 1952

Ivory 1879

Secret 1956

Pampers 1961

Folger's 1963

1930

Crest 1955

Camay 1927

Sure 1972

Luvs 1976

Instant Folger's

Dreft 1933

Lava 1928

1963

Tide 1946

Kirk's 1930

High Point

Joy 1949

Zest 1952

Instant 1975

Cheer 1950

Safeguard 1963

Folger's Flaked

Oxydol 1952

Coast 1974

Coffee 1977

Dash 1954

Cascade 1955

Duz 1956

Ivory Liquid

1957

Gain 1966

Dawn 1972

Era 1972

Bold 3 1976

Solo 1979

Product mix width

Product Line Extension

PL extension - firm adds new versions of existing products or modifies these products so as to deepen their product line. The appeal is to existing market segments.

PL Extension - Used to increase usage among existing customers by providing more options.

This is possible when consumers are dissatisfied with the range of options and extending the line will result in net contribution of profits.

Product related ExtensionsColgate Tooth pasteTooth brushPrestige cooker-Non stick wareNirma Detergent powder-cakeFrooti Parenthood brand launching various versionsCinthol moving to Talc from toilet soapZodiac Belt from shirts, Ties -?

Product related Extensions More options to consumers cintholCornering more retail shelf spaceCreating some excitement around an old brand Extending core promise to new users- Ariel super soakerManaging changed market situation-Colgate Gel to fight Close up

Line ExtensionUp gradation of Existing customersUnfulfilled NeedNoveltyPonds Magic ,Nirma Cake, Life buoy Plus

Product Line Extensions

High end Low end-

Merits & Demerits of Stretching

Product Line Extension

Low end High end

Merits & other Demerits of Stretching

Un related ExtensionsGodrej ---- Soap ,Safety lock, Cupboard, hair dye, refrigerator, type writer,Tata --- Motor ,Tea, Power , Salt ,SteelWipro --Computer, soap

Brand - Extension Decision

A brand - extension strategy is any efforts to extend a successful brand name to launch new or modified products or lines, different from Existing segment or product line..

If the current market is saturated -firm may consider line expansion or-new market segments.

HOW TO EXTEND BRAND

1) Identify Brand Associations.

2) Products linked to these Associations.

3)Select the best product for concept testing & Development.

- Fit to the product

( Advantages

( Consistency in the value perception

Competitive edge in the extension

( not create any kind of dissonance

( company Expertise, infrastructure & resources.

Perimeters of brand extensionStrategic Brand Management

Brand Extension FAILS ? WHY ?.

BRAND EXTENSIONSTRATEGIES & MODELS

BRAND EXTENSION MODELFAMILIARITY v/s ESTEEM

THE EXTENSION MATRIXFamiliarity:How well known/ AwarenessHow high unaided recall How wide spread it its nameEsteem: ImagePopularSatisfied are the current users.Level of inertia of the current users to stick toAspiration levels & the potential market. Brand Equity.Perceived Quality.

low brand familiarity

high brand familiarity

high brand esteem

Esteem may not be explorable due to niche brand (dont go)

(bmw

(rolex

extension most likely to succeed (go)

(bajaj - m/cycle

(maruti

(Lux

(lifebuoy

low brand esteem

risk less & potential more (go)

(signal tooth paste

(erasmic blades

(lyril briefs

-ve baggage for extended product (don't go)

(indian airlines

(hmt

(premier padmini

Brand ExtensionType of Brand and Ability to Extend.Under and over-exploitation of a brand capital asset.

TRANSACTION MARKETING V/s CUSTOMERS RELATIONSHIP MARKETING

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