Customer Based Brand Equity Pyramid- Keller(Brand Resonance Pyramid) Brand resonance- strong brand & consumer connect, throusage & experience Strong resonant brands- increased loyalty & decreased vulnerability to competition Brand challenge- ensure right customer experiences to create right brand knowledge Brand equity- customers develop differential towards brand hence prefer it over others Understanding differential helps interpret the past, design effective future programmes

! Building resonance involves a series of steps Identity- Who are you- consumers begin to understand what a brand stands for, means Meaning- What are you- consumers link in/tangible association, understand PoD/PoP Response- What about you- judge brands on credibility, expertise & trustworthiness Relationships- What about you & me- How to connect, create intense, active loyalty

Building blocks- structure to build brands with customers Salience- consumers brand recall in a purchase situation- depth & breadth of brand awareness Performance- What a brand does to meet customers' functional needs- intrinsic properties Imagery- Think abstractly than physically about brand, intangibles- extrinsic brand properties Judgments- Customer brand evaluation (performance+ imagery association)- brand opinions Feelings- emotional brand response/ reaction (mild/intense; +/-, or experiential / enduring) Experiential feelings (warmth, fun and excitement)- immediate & short-lived Enduring feelings (sense of security, social approval, self-respect), private, of day-to-day life

Resonance- Intense, active loyalty- customers feel a connect to brand, will miss it if it went away Nature of relationship, extent to which customers feel they are in sync with a brand Behavioural loyalty- repeat purchase rates Attitudinal attachment- intensity or depth of psychological bond customers have with a brand Active engagement- level of activity engendered by this loyalty Sense of community- extent to which customers seek brand info, events, loyal customers

Kapferers Brand Identity Prism (1997)

How 6 personality & physical facets define brand identity

Helps marketers gauge brand identity, provide answers to questions like- If the brand was a person, how would he look? What traits would he have? Warm, cold, aggressive, approachable or smart?

Knowing identity helps design strategy, positioning & affects marketing collaterals

Physical facet, brand relationship and customer reflection are externalization factors, rest represent internalization

Case- Brand identity of Adidas & Nike

Physique Core, central purpose, foundation What is the product, what does it do, how does it add value, fill gaps Titan and Nokia performance, Head & Shoulders dandruff

Personality Soul, what the brand would be if it were a person, personality traits Disney fun, Woodland rugged, Raymond well-groomed man

Reflection External mirror, how target identifies himself wrt brand Brand reflects customers image outward, image of buyer using brand Lux- beauty, Pepsi young, Thums up adventurous

Consumer mentalisation

Internal mirror, consumers attracted to brands where they see own traits Self image, how the targeted identifies brand wrt self, inner relationship Nike- athletic, sporty, Enfield Bullet- armed forces

Relationship Intangible brand and consumer connect, exchanges, experiences How should brand be seen by customers in marketing communication? Nokia reliable friend

Culture Culture spawns brand values and principles which bind customers Strong dimension, differential, internalises in customers conscience VW- German engineering, Amul- Indian, HSBC World's local bank

Key differences between the two companies are at the cultural and the self-image level. Adidas stands for European culture, traditional, conservative, collective & competent Nike symbolises American way: individual & aggressive- Michael Jordan, McEnroe Adidas connected to positive emotions, more to competing than to winning Adidas- challenging oneself is exciting; winning is reward, not reason for playing well Adidas personality reflects true sportsmanship, good team player & strong work ethic. Nike has a cool attitude, You dont win silver, you lose gold, winning is paramount

7 Brand Architecture An organizing structure, family tree or hierarchy of the brand portfolio that specifies brand roles and the nature of relationships between brands and sub brands (Aaker & Joakimsthaler)

Brand architecture is like a soccer team with the football pitch as the market map, and each football player as a brand playing a major, minor or support role. Hence individual players/brands will benefit from identity and communication programs

The ideal portfolio Typical market/brand portfolio

Nike Adidas

Promo strategy focus on individual athletes Sponsors teams & global events

External Physique Sports & fitness Sports & fitness

Relationship Sponsorship, ethics Quality & heritage

Reflection Aggressive, provocative, in-your- face

Sportsmanship, team player, strong work ethic

Internal Personality Michael Jordan, Tiger Woods Traditional, conservative, collective

Culture American, Just Do It European, traditional

Self-Image Cool, trendy Competitor, competent

Reflection: true sportsman-

ship, A good team

player, strong work

ethic

Se lf-Image: Rel ates more to

competing t han t o

winning

Re lationshi p:Quali ty and

heritage

Personal ity: Tradi tional , conserva-

ti ve, collective

Physique: Sports and

fitness

Culture:European,

Traditional

Picture of Sender

Extern

aliz

ation In

tern

alizat

ion

Picture of Recipient

Adidas

Reflection:Aggressive,

provocative,

in-your-face

Se lf-Image: Cool, I am an

Athlete

Re lationshi p:Sponsorship,

ethi cs

Personal ity: Like Jordan,

Woods

Physique: Sports and

fitness

Culture:American,

Just do It!

Picture of Sender

Picture of Recipient

Extern

aliz

ation In

tern

alizat

ion

Nike

Source: Designing brand architecture (Davidson, 2002, portfolio managing matters. Brand Strategy pp 28-29)

Objectives of brand architecture are- creating effective & powerful brands, allocate brand building resources, create synergy, clarity of product offering, leverage brand equity, and provide platform for future growth.

!

Brand portfolio- all brands, subbrands, cobrands; add /extend/ delete brands Portfolio roles of each brand- Strategic Role- important source of future profits/vision- Virgin Air, Tata indicom Linchpin Role- brand provides key basis for customer loyalty. First Citizen Club for Shoppers

Stop, J&J baby range Silver Bullet- brand positively influences image of another brand- IBM Thinkpad boosted

public perceptions of IBM, Nano of Tata Motors Cash Cow- significant customer base may not require high level of investment but generates

funds to be invested in strategic, linchpin, silver-bullet brands. Parle G, Nivea Creme

Design Your Portfolio Graphics Visual representations across portfolio of brands- logos, packaging, symbols, product design,

layout of print ads, taglines- look and feel of each brand presentation Do visual representations send right signals of relationships between brands in portfolio? Exercise: put all graphic representations of brand portfolio (logos, packs, mascots) on

paper. Do they convey consistent message and support brand portfolios structure

Develop Brand Portfolio Structure Brand portfolio structure is a way of grouping brands to clarify logical relationships

Brand hierarchy tree for Indian Hotels- Taj Hotels, hallmark of luxury and service But Taj tag was on every group hotel, guests were confused what brand Taj stood for? Differentiated by quality & service standards , hive off hotels not fitting architecture

!

Exercise- clarify relationships among brands by drawing a brand family tree.

Specify the Product-Market context of each brand Endorser brands- Brand endorsed by parent or corporate brand where parent brand is identified

with the brand, but, endorsed brand is given greater visual weight than parent brand. The corporate/parent brand lends credibility or assurance to endorsed brand without overpowering it with its own associations. Cadburys Dairy Milk / Five Star. Xylys, Swiss Made- Brought to you by Titan

Subbrand- A new brand combined with a product or corporate brand. The subbrand can make the parent brand more vital and relevant to a new consumer segment or within a new product category. Ford Ikon- Flair, Hyundai Getz- Prime, Gillette Sensor Excel

Benefit brands- branded features, components, or services that augment the brand offering- Maruti Ritz with Kappa engine

Cobrands- combine your brand with brand/s from another firm to create a unique offering- Citibank-Jet Platinum credit cards or highlight an ingredient of another firm in your brand communication- HP laptops with MS Office or Intel inside, Dolby system in Multiplexes, Teflon coating in Pans, Carl Zeiss in mobile cameras

Titan Brand Architecture

! House of Brands or Branded House

Brand architecture types: Common branding systems are

Branded House House of brands

Master brand strategy Product brand strategy

1 master brand across categories New brands /extensions / sub brands

Harvard (HBR, HBS, Medical/Law), Nike Maruti (800, Alto, SX4, Swift), P&G

Master brand does not connect in all markets (Nike Laptops, Harvard Entertainment)

Easier for different brands to connect to different / adjacent markets

Low branding costs/synergy- 1brand leveraged Costlier- separate branding costs

Category failure may damage master brand Brand failure may not affect firm

Brand Type Example Strategic Rationale

Corporate

Dominant

Corporate brand

Heinz GE Sony, Tata, Reliance, HP

Bear company name Highest in brand hierarchy Harnesses strong corporate image synonymous with product class CD common, FMCG rare, tech popular

Master brand

BMW Mont Blanc Nokia

Dominant, highest level in hierarchy Typically, only brand in the system Corporate brands were master brands

Licensed brand

Calvin Klein, Disney Tommy Hilfiger

Name licensed out- fashion industry- clothes, leather, eyewear, accessories

Parent brand

Godrej, Videocon

Brand extended to multiple categories May resemble corporate brand Economical NPL, trust/assurance, marketing economies

Mixed Brands

House brand (family brand)

Tata, Amul

Diversified firms leverage corporate brand association across segments/ categories if 2 product lines are incompatible (Titan & Sonata premium & economy)

Dual brands (family / endorser brands)

Cadbury- 5 Star Gillette- Mach3 Ford-Ikon Tata Indica

Combine corporate + strong subbrand Subbrands help differentiate, drive brand preference Umbrella for a family of products extensions

Co-brands (ingredient brands)

Intel inside Teflon coated Dolby system

Raise perceived quality & familiarity of both brands Brand exposure in absent product class

Brand

Dominant

Product/Mono brands (single brands)

Rexona, Crocin Nivea, Axe

Strong brand identity, need focused Corporate brand insignificant, FMCG Expensive and risky but profitable Shelf space/market share/extensions

Sub Brand Ford Ikon- Flair, Hyundai Getz- Prime, Gillette Sensor Excel

New brand + parent/corporate brand in brand identity system Subbrand draws on parent brand to target new segment or category Enables existing consumer connect

8 Brand Portfolio Management

Brand Portfolio- Set of all brands/lines a firm offers to buyers in a particular category. Multiple brands increase shelf presence, attract variety seeking consumers, help new market

entry & yield economies of scale in advertising, sales & distribution Portfolio maximises brand equity & market coverage, minimises brand overlap Differentiation appeals to a sizeable segment & justify marketing and production costs Critical- Portfolio monitoring & pruning of weak and unprofitable brands Maruti- 800, Alto, A-Star, Estilo, Wagon-R, Ritz, Swift, Desire, etc & their variants

Product Branding Separate brand, own identity, image & set of associations, company not prominent Paras- Moov, DCold, Livon, Dermicool, Freshia, CavinKare- Chic shampoo, Spinx perfumes, Meera Herbal, Nyle Shampoo HUL- Rexona, Axe, Close Up, Taj Tea, Lipton Tea, Surf, Wheel

Line Branding Brand successful in a category for a targeted consumer group, is extended to other product lines

in the category/ adjacent categories, but catering to same groups needs. Product lines cater to different needs, cosmetics- lipstick, nail polish, moisturizers, beverages-

flavours, ketchups/ mineral water/ biscuits- pack sizes, cars- variants. Identity of the main brand is leveraged across other extensions Line branding restricted to adjacent territories & complementary products. Gillette razors and cartridges- Vector, Sensor, Mach 3, Turbo; shaving gels, deos, LOreal-

cosmetics, beauty, shampoos, skin, salons Amar Chitra Katha- comics (print), mobile, TV, Cinema, online

Range Branding Built on common association, competence or promise of the main brand or firm Brands common position/ association spread across related and unrelated categories Kingfisher symbolizes the good times- extended across Beer, airlines and soccer Godrej symbolizes century of trust & reliability- FMCG, CD, realty, furniture, locks

Umbrella Branding One brand for all products/categories, drawing on the strength of the master brand Safer, cheaper than building new brand, association should strategically fit categories Samsung- TV, fridge, washing machines, mobiles, hard disk, monitors, laptops Virgin- Airlines, Cola, Music, Moon travel, mobile, entertainment

Source/Double Branding Corporate + new brand (combination of umbrella & product branding strategy) Equal prominence in communication and branding for both brands Brand benefits from corporate brands image or adds subtracts to/ from it. Hyundai name precedes Santro, Getz, i10, i20, Verna, Tucson Johnnie Walker Scotch Whisky Red label, Green label, Black label & Blue label

Endorsement Branding Similar to source branding, but product brand more significant than corporate brand

Corporate brand conveys basic associations, augmented by the product brand Cadburys precedes Dairy Milk, 5 Star, Fruit & Nut, Celebrations, Temptations Polo by Ralph Lauren, Armani- Signature, Collezioni, Exchange, Junior

Brand Extension Extend existing brand to new products, services, or consumer segments Existing brand + new brand, new brand is called subbrand If executed well, brand extensions broaden and clarify brand meaning, if not, dilute or confuse

brand meaning. Kingfisher (Beer to Airlines) and Amul (Milk & Foods).

%LDevising the Branding Strategy NPL 3 choices: Develop new brand elements for new product, apply some of its existing brand elements, use a combination of new and existing brand elements

Brand extension- use an established brand to introduce a new product-Gillete Sensor Sub-brand- new brand combines with an existing brand- Gillete Sensor Excel Parent brand- the existing brand which gives birth to a brand extension- Gillette Family brand- Parent brand already associated with multiple products through brand extensions.

Cadbury

Brand extensions can be broadly classified into two general categories:

1.Line extension- parent brand used to brand a new product, target new market segment within a product category currently served by parent brand Maggi Noodle SKUs

2.Category extension- when parent brand is used to enter a different product category from that currently served by the parent brand- Kingfisher Beer to Airlines

3.Brand line- All products- original, line & category extensions, sold under a particular brand- Godrej, Videocon, Heinz

4.Brand mix (brand assortment) - all brand lines of a firm available to buyers HUL- Close-up, Pepsodent

Brand name

Product category

Old New

Old Line extension-(New SKU, flavours- Mirinda lemon, Rasna mango, Pepsi 1.5L)

Brand extension- (Titan Raga, Junior Horlicks)

New Sub brand- (Gillette Sensor Excel, Ford Ikon Flair, Kellogg Frosties K)

New brand- (Maruti Ritz, Tata Nano)