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DESCRIPTIONBRAND EQUITY BRAND IDENTITY. PRODUCT LINE EXTENSIONS BRAND EXTENSIONS PRODUCT MIX DECISIONS. BRAND EQUITY BUILDING STRONG BRANDS. BUILDING STRONG BRANDS. BRAND STRENGTH= DIFFERENTIATION * RELEVANCE BRAND STATURE=ESTEEM*KNOWLEDGE ESTEEM BASED ON PQ - PowerPoint PPT Presentation
BRAND EQUITYBRAND IDENTITY PRODUCT LINE EXTENSIONS BRAND EXTENSIONSPRODUCT MIX DECISIONS
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
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
1. Assets & Liabilities
2. Core Values
A) Brand Loyalty - Inertia existing user has to continue use of a particular brand even if the switching costs are low.
- 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
- relative price economy
- use / application
- user / customer
- celebrity / person
- Life Styles / Personality
- Product class
- Country / geography
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 -
-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
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
Bold 3 1976
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
( 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)
extension most likely to succeed (go)
(bajaj - m/cycle
low brand esteem
risk less & potential more (go)
(signal tooth paste
-ve baggage for extended product (don't go)
Brand ExtensionType of Brand and Ability to Extend.Under and over-exploitation of a brand capital asset.
TRANSACTION MARKETING V/s CUSTOMERS RELATIONSHIP MARKETING