The status dilemma

Neha is a working woman, and she needs a lunch box to carry to office. She remembers her father leaving for work every morning clutching his colourless stainless steel lunch box. But Neha shudders to even visualize the look on her colleagues’ faces if she walks into office with such a lunch box. Neha has a number of options available in the market to choose from, but she needs bright trendy containers, which can keep the food fresh for longer periods of time.

Concept of branding

For the consumers, a brand is a product. But for the maker or the seller, a brand is an identifier of its goods and services and a promise of consistently delivering the features/benefits that the consumers desire from the brand.

Brand to the rescue Neha found exactly what she was looking for when her

friend Meena brought her lunch box to office one day. Meena told her about Tupperware—a global brand, recognized the world over. Tupperware products were excellently designed and had won prestigious awards like the Red Dot award in 2009 (an award for excellence in product design instituted by Design Zentrum Nordrhein Westfalen in Essen, Germany), and the company was also featured in ‘Forbes.com Platinum 400—America’s Best Big Companies List’ for the sixth time in a row in 2009. Tupperware had ‘a range of high quality, lightweight, rust- and break-proof, colourful, airtight, stylish containers, which kept food fresh for longer, thus avoiding waste’ (Superbrands 2009). They were leak-proof as well, which meant that Neha could carry and store curry and gravy items.

1.4

What is a brand?

For the American Marketing Association (AMA), a brand is a “name, term, sign, symbol, or design, or a combination of them, intended to identify the goods and services of one seller or group of sellers and to differentiate them from those of competition.”

These different components of a brand that identify and differentiate it are brand elements.

What can we brand?

A service—for example, Life Insurance Corporation, State Bank of India

A product—for example, Nokia mobile, Lux soap, Knorr soup

A store—for example, Big Bazaar, Shoppers Stop A place/geographic location—for example, Taj Mahal,

India (the Incredible India! campaign) A person—for example, Aamir Khan, Amitabh Bachchan An idea—for example, World Wildlife Fund An online organization—for example, Amazon, Make my

Trip An organization—for example, UNICEF

BRAND

WHAT IS A BRAND?

It is combination of features (what the product is), customer benefits (what needs & wants the product meets), & values ( what the customer associates with the product.)

A brand is created when marketing adds values to a product in the process differentiates it from other products with similar features & benefits.

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1.7

Importance of Brands to Consumers

Identification of the source of the product Assignment of responsibility to product maker Risk reducer Search cost reducer Promise, bond, or pact with product maker Symbolic device Signal of quality

1.8

Can everything be branded?

Ultimately a brand is something that resides in the minds of consumers.

The key to branding is that consumers perceive differences among brands in a product category.

Even commodities can be branded: Coffee (Maxwell House), bath soap (Ivory), flour

(Gold Medal), beer (Budweiser), salt (Morton), oatmeal (Quaker), pickles (Vlasic), bananas (Chiquita), chickens (Perdue), pineapples (Dole), and even water (Perrier)

1.9

A brand is therefore more than a product, as it can have dimensions that differentiate it in some way from other products designed to satisfy the same need.

Difference between a Product and a Brand

Attribute

Product usesQuality/value

Functional benefits

PRODUCT

Scope

BRAND

Self-expressive benefits

Symbols

Emotional benefits

User imagery

Brand personality

Organizational associations

Brand customer relationship

Country of origin

1.11

An Example of Branding a Commodity

De Beers Group added the phrase “A Diamond Is Forever”

Rationale for Building a Brand

Benefits of Building Strong Brands—Organizational Perspective

Identifier Shorthand for information Legal protection Differential advantage Unique associations Price premiums Enhancing customer loyalty Higher market share Inelastic response to price increase As a barrier to entry of other brands Can be bought and sold as an asset

Rationale for Building a Brand Benefits of Building Strong Brands— Customer

Perspective Source of identification Heuristic or proxy for quality Source of evaluation A tool to simplify decision making Risk reducer

Financial risk, performance risk, time risk, social risk, psychological risk

Tool to express self image

BRAND VALUES

A) INSTRUMENTAL VALUES

- WHAT DOES THE BRAND DO ? (ex) Cleans teeth better, or lasts longer - More functional Benefit.

B) DIRECT EXPRESSIVE VALUES

- HOW DOES THE BRAND DO ? They reflect the character of the Brand frequently the user. (ex) Modern/ Traditional/ Feminine 14

C) CENTRAL VALUES

- WHAT ELSE DOES IT DO ?

They relate to the aspiration

(Personal Drives)

(ex) Confidence/ Security/ Freedom

D) CORE VALUES

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1.16

Strategic Brand Management Strategic Brand Management ProcessProcess

Mental mapsCompetitive frame of referencePoints-of-parity and points-of-differenceCore brand valuesBrand mantra

Mixing and matching of brand elementsIntegrating brand marketing activitiesLeveraging of secondary associations

Brand value chainBrand auditsBrand trackingBrand equity management system

Brand-product matrixBrand portfolios and hierarchiesBrand expansion strategiesBrand reinforcement and revitalization

Key ConceptsSteps

Grow and sustainbrand equity

Identify and establishbrand positioning and values

Plan and implement brand marketing programs

Measure and interpretbrand performance

BUT, WHAT IS A GENUINE BRAND?

“ The internalized sum of all impressions received by customers and consumers resulting in a distinctive position in their ‘Mind’s Eye’ based on perceived emotional and functional benefits”.

Relative Brand Distinction

Commodities ----------- No diff. except price.

Brand name ----------- Well known but similar.

Brand ----------- Distinctive.

Genuine brand ---------- Perceived by the consumer as unique.

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A) Yesterday way to build a Brand

F.R.E.D. Model

• Familiarity

• Relevance

• Esteem

• Differentiation

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TODAY’S WAY TO BUILD A BRAND

D.R.E.A.M Model

Differentiation.

Relevance. Esteem.

Awareness. Mind’s eye.

a) What is the distinctive benefit to be communicated to the Tgt audience?

b) What are the best ways to build a specific brand’s image?

c) How is the Mktg. Budget directed to optimize Brand Equity?

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WHAT IS BRANDING?

It is a creation & infusion of Brand elements that serve to identify & differentiate a product from others.

So, the task of Branding is to define what the brand infuses into the the product/ service & how the brand transforms it.

BRAND ELEMENT

It is a visual or verbal information that serves to identify & differentiate a product.

What are they?

• Brand name• Logo• Symbols• Characters• Packages• Slogans

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Criteria for choosing Brand Elements

1) Memorability.

2) Meaningfulness.

3) Transferability.

4) Adaptability.

5) Protect ability.

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THE LOGIC OF BRANDING

A Brand aims to segment the market

Brands are built up by Persistent Difference over the long run.

A brand is a living memory

A brand gives products their meaning direction

A brand is a Genetic program

A brand is a contract

It Simplifies customer decision making.22

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BRAND MANAGEMENT PROCESSBRAND MANAGEMENT PROCESS

Mkt. Analysis

Brand SituationAnalysis

Tgtg. FuturePositions

Testing NewOffers

Planning & EvaluatingPerformance

BRAND NAME

THE BRAND NAME IS

The basic core indicator of the brand

The basis for awareness

The basis for communication effects

The basis for Sales measurement

More permanent then anything else

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WHAT THE BRAND NAME CAN DO?

It helps create association in the mind that act as Descriptor – what it is? And What it does?

(ex) – Xerox

It provides entry barrier in its category once it gets established.

(ex) Burnal/ Surf/ Dettol

Through time & use, it becomes a viable asset.(ex) Tata/ Godrej

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TYPES OF NAMES

DESCRIPTIVE BRNAD NAME

SUGGESTIVE

FREE STANDING

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CRITERIA FOR BRAND NAME SELECTION.

A IT SHOULD BE EASY TO LEARN AND REMEMBER:

i. When a name has something about it that is interesting.ii. When a name elicits a mental picture/imageiii. When a name is meaningful.iv. When a name has some emotionv. When a name is simplevi. When a name is different or unusual enough to attract attention & perhaps to arouse curiosity

B IT SHOULD SUGGEST THE PRODUCT CLASS

C IT SHOULD SUPPORT A SYMBOL/SLOGAN

D IT SHOULD SUGGEST DESIRED ASSOCIATIONS WITHOUT BEING BORING/TRIVIAL.

E IT SHOULD NOT SUGGEST UNDESIRED ASSOCIATION.

F IT SHOULD BE DISTINCTIVE - NOT TO CONFUSE WITH COMPETITORS NAMES.

G IT SHOULD BE AVAILABLE AND PROTECTABLE LEGALLY.27

SIMPLE QUANTITVE RESEAECH FOR BRAND NAME

a) What Thoughts come to your mind on hearing this name?

b) What does the name mean to you?

c) How would you Pronounce this name?

d) What do you Particularly like about the name?

e) What do you particularly dislike about the name?

f) Which products would the name suit?

g) Which products would the name not suit?

h) Which name do you like the most & Why?

i) Which name do you dislike the most & Why? 28

SIMPLE QUALITATIVE RESEARCH

I like the brand name cook lite.

Why?

I prefer to cook light food.

Why?

Light food is good for health

Why?

No digestion problem. Can be active Low fat formation in body Better for old/ all family members Children can eat more of light food. 29

4.30

Putting It All Together

The entire set of brand elements makes up the brand identity, the contribution of all brand elements to awareness and image.

The cohesiveness of the brand identity depends on the extent to which the brand elements are consistent.

BRAND REASONS

Why should a consumer buy the Brand?

What can be the rational reasons?

What can be the emotional resons?

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RATIONAL REASONS

a) Feature Based:

Technology .

Design.

Ingredients.

b) Attribute Based:

Colour.

Shape.

Look.

Size

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C) Benefit based:

Price.

Product delivery.

Service.

Packaging.

Maintenance.

EMOTIONAL REASONS

What are the emotional reasons for buying the Brand?

There are nine universal emotions namely Happiness, anger, disgust, fear, sorrow, courage, compassion, wonder and serenity.

(Ex) Pride/Self worth/Confidence/Image projection/ Achievement/ Envy.

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How can emotional reasons be uncovered?

A comprehensive analysis of consumer behavior is the starting point. But a powerful tool is “Benefit Laddering”.

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Child can Grow

All IngredientsChild needs

Health Beverage with 23 vitalIngredients.

Famous Mother

Cricket Captain

Strong Kid

Success in Sports

Physical Growth of kids

Proud Mother

IAS/ IIT/ Doctor

Success in exams

Mental growth of kids

BENEFIT LADDERING The set of “Why” questions could lead us in to many different directions.

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Brand Strategies

New BrandsMulti brands

Brand ExtensionBrand Expansion

NewExisting

Product Category

New

Existing

Brand

Name

Brand

Name

What can we brand?

A service—for example, Life Insurance Corporation, State Bank of India

A product—for example, Nokia mobile, Lux soap, Knorr soup

A store—for example, Big Bazaar, Shoppers Stop A place/geographic location—for example, Taj Mahal,

India (the Incredible India! campaign) A person—for example, Aamir Khan, Amitabh Bachchan An idea—for example, World Wildlife Fund An online organization—for example, Amazon, Make my

Trip An organization—for example, UNICEF

Branding challenges

Intelligent and educated customers Growth of private labels Brand proliferation Increasing trade power Media fragmentation and the rise of new media Increasing cost of product introduction and

support Increasing job turnover

Key issues in branding Whether to brand or not How to build brand equity How to measure brand equity Understanding customers and how they purchase a

brand How to position the brand Which marketing mix strategies to choose How to design branding strategies How to manage brands over time How to manage brands across geographical

boundaries