introduction to brand & brand management[1]
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Product & Brand Management
June-August 2012Course Coordinator : Dr Monica Khanna
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Origin of the word “
BRAD !
"he word “ Brand ! is deri#ed fro$ the wordBRANDR, which means “ to burn ”, as ownersof livestock used a distinguished burn mark toidentify their animals.
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%hat is a Brand && "he A$erican Mar'eting Association (AMA ) de*nes
the +rand as a : “na$e, ter$, sign, s$+o., ordesign, or a co$+ination of the$, intended to
identif the goods and ser#ices of one se..er orgrou/ of se..ers and to dierentiate the$ fro$co$/etition !
Aa'er (11), “A +rand is a distinguishing na$e and3ors$+o. (such as a .ogo, trade$ar', or /ac'age design)intended to identif the goods or ser#ices of either onese..er or a grou/ of se..ers and to dierentiate thesegoods fro$ those of co$/etitors!
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%hat is a Brand && "he A$erican Mar'eting Association (AMA ) de*nes
the +rand as a : “na$e, ter$, sign, s$+o., ordesign, or a co$+ination of the$, intended to
identif the goods and ser#ices of one se..er orgrou/ of se..ers and to dierentiate the$ fro$co$/etition !
Aa'er (11), “A +rand is a distinguishing na$e and3ors$+o. (such as a .ogo, trade$ar', or /ac'age design)intended to identif the goods or ser#ices of either onese..er or a grou/ of se..ers and to dierentiate thesegoods fro$ those of co$/etitors!
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%hat is a Brand &&4owe#er, +rands go $uch +eond the
connotation of t/e and source ofidenti*cation :
+rands e#o'e familiarity feelings in
the $inds of the consu$er ( +oth /ositi#e and
negati#e ) and re!utation revenue ( +oth /ositi#e and negati#e ) for theco$/an that creates the +rand
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%hat is a Brand &&Brands he./ to create :
awareness
re!utation !rominence
trust
ability to make faster !urchasedecisions
in the $inds of the consu$er
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%hat is a Brand && "he $ost i$/ortant as/ect of the /rocess of +rand
$anage$ent is to gi#e out consistent
messages and remain relevant not on.to the current target grou/ of custo$ers, +ut a.soto the future grou/ of custo$ers
"his is a great cha..enge for an co$/an due tochanging consumer behavior of the current
and future grou/ of custo$ers, com!etition, and
a#ai.a+i.it of substitute !roducts.
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Anthing 3 Anone can +e
+randed5roduct +rands
6er#ice +rands
7-+rands
Destination +rands
5erson as a +rand ( ce.e+rities )
Cor/orate +rands
8O +rands
Association +rands ( AMA, Bo$+a Manage$entAssociation, Ad#ertising C.u+ Bo$+a, assco$ 369AM )
9nt.3ationa.3Regiona.3oca. +rands 3 5ri#atea+e.s12/15/15 Dr Monica Khanna 8
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Dierence +etween 5roduct ;
Brand %hat distinguishes a +rand fro$ its
un+randed co$$odit counter/art and gi#esit e<uit is the su$ tota. of consumers’perceptions and feelings a+out the/roduct=s attri+utes and how the /erfor$,a+out the brand name and what it standsfor, and a+out the company associatedwith the brand.
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5roduct
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5ro$otion
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9$/ortance of Branding
>B creating /ercei#ed dierences a$ong
/roducts through +randing and + de#e.o/inga .oa. consu$er franchise, $ar'eters create#a.ue that can trans.ate to *nancia. /ro*ts forthe co$/an
"he $ost #a.ua+.e assets of a co$/an are itsintangi+.e assets
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Retired +rand .ogos &&>
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Destination +randing >
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Brand 7.e$ents "he dierent co$/onents of a +rand that
identif and dierentiate it fro$ theco$/etitors oers are ca..ed as BRAD
77M7"6 ? a$e, ogo, 5ac'age Design, oran other attri+ute
"he $ar'eter has $an choices o#er the
nu$+er and nature of the +rand e.e$entsthe choose to identif their /roducts
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Brand 7.e$ents >
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Brand 7.e$ents 9f image is everything then our co$/an=s
.ogo is its *rst i$/ression
Before an 'now.edge of the co$/an has+een ac<uired, /erce/tions ha#e a.read +eenfor$u.ated +ased on the .ogo
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5roduct #s Brand"roduct ? anthing that can +e oered to the
$ar'et for attention, ac<uisition, use orconsu$/tion ? that $ight satisf a need or
want 5roduct $a +e a /hsica. good,ser#ice, retai. store, /erson, organisation,idea
Brand ? is a /roduct, +ut one that adds otherdi$ensions that dierentiate it in so$e wafro$ other /roducts designed to satisf thesa$e need
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Brand Brand is a su$ tota. of consu$er=s
/erce/tions and fee.ings a+out the /roduct=sattri+utes and how the /erfor$, a+out the
+rand na$e and what it stands for, and a+outthe co$/an associated with the +rand
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@i 5 d .
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@i#e 5roduct e#e.s
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Potential product
Augmented product
Expected product
Basic product
Core benefit
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%hat is a Brand &&As 9nter+rand=s John Mur/h has said “
creating a successfu. +rand entai.s #ariouse.e$ents /ut together in a uni<ue wa - the
/roduct or ser#ice has to +e of high <ua.itand a//ro/riate to consu$er needs, the +randna$e $ust +e a//ea.ing and in tune with
the custo$er=s /erce/tions of the /roduct, the
/ac'aging, /ro$otion, /ricing and a.. othere.e$ents $ust si$i.ar. $eet the tests ofa//ro/riateness, a//ea. and dierentiation !
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Ro.es that Brands 5.a Consu$ers 5oint of iew >
9denti*cation of source of /roduct
Assign$ent of res/onsi+i.it to /roduct $a'er
Ris' reducer
6earch cost reducer
5ro$ise, +ond or /act with $a'er of /roduct6$+o.ic de#ice ( se.f i$age )
6igna. of <ua.it
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Ro.es that Brands 5.a >Manufacturers 5oint of iew >
Means of identi*cation to si$/.if hand.ingor tracing
Means of .ega.. /rotecting uni<ue features6igna. of <ua.it .e#e. to satis*ed custo$ers
Means of endowing /roducts with uni<ueassociations6ource of co$/etiti#e ad#antage6ource of *nancia. returns
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Best 8.o+a. Brands 20112007Rank
Brand 2008Rank
2009Rank
2010
Rank
2011
Rank
Country ofOrigin
Sector 2011 BrandValue
$ million
Change inBrand Value
1 CocaCola 1 1 1 1 !S Be"erage# 718%1 2 &
2 'icro#oft ( ( ( ( !S Soft)are *9087 (&
( +B' 2 2 2 2 !S Bu#ine##
Ser"ice#
%990* 8 &
,oogle 7 - - !S +nternet #er"ice# **(17 27 &
- ,. - - * * !S /i"er#ified -2808 0 &
* okia * * 8 1- inland Con#umer.lectronic#
29-9* 1* &
% oyota % 8 11 11 3a4an 5utomoti"e 2%192 % &
7 +ntel 7 9 7 7 !S .lectronic# (*217 10 &
8 'c/onald6# 8 % % % !S Re#taurant# (**9( % &
9 /i#ney 9 10 9 9 !S 'edia 29018 1 &
10 'ercede# 11 12 12 12 ,ermany 5utomoti"e 2*179 9 &
544le 8 !S .lectronic# ((-92 *8&
e)lettackard
10 !S .lectronic# 28-79 %&
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B t 8. + . B d 2011
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Best 8.o+a. Brands 20112007Rank
Brand 2008Rank
2009Rank
2010
Rank
2011
Rank
Country ofOrigin
Sector 2011 BrandValue
$ million
Change inBrand Value
(1 /ell (2 (* -1 -( !S Com4uter ard)are 8(-7 %&
-1 ord -9 -9 *0 *0 !S 5utomoti"e 7-8( -&
-( Siemen# -8 -7 -9 -% ,ermany /i"er#ified 7900 8&
%1 ,5 77 78 !S 544arel
70 leene: 7- 71 !S er#onal Care
7- i;;a ut 81 79 !S Re#taurant#
77 'otorola 87 !S Con#umer.lectronic#
82 odak !S Con#umer.lectronic#
8- B 8- 8( ! .nergy
8% raft !S ood
98 i##an 3a4an 5utomoti"e
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9ndia=s Best Brands 2011 ( Brand
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9ndia s Best Brands 2011 ( Brand7<uit 2th 6e/t 2011
BRAN RAN!
CO8A"7 1
2
A9R"7 E
9@7BOF G
OK9A H
D7""O I
BR9"A9A
ODA@O7
MA889
CO675 1012/15/15 Dr Monica Khanna 33
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2011
BRAN RAN!
A9R"7 1
ODA@O7 2
B6 E
9D7A G
6"A"7 BAK O@ 9D9A H
B98 BAAAR I
"A"A DOCOMO
"A"A 9D9COM
A9RC7
9C9C9 BAK 10
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9ndia=s Best CO6M7R RAB76
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9ndia s Best CO6M7R RAB76Brands 2011
BRAN RAN!
6AM68 1
8 2
8ODR7J E
6OF G
"9"A H
549956 I
9D7OCO
O9DA
77R7ADF
95 10
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De*nition of Brand 12 "he$es#. Brand as a $egal %nstrument ..
. Mar' of ownershi/, na$e, .ogo, design
. 7ng.ish OLford Dictionar descri+es +rand as “ a /articu.ar sort orc.ass of goods, as indicated + the trade$ar's on the$ !
. Co$/anies /rotect their +rands against infringe$ent
&. Brand as a $ogo '
. A(A de)nition * #+- / a name, term, sign, symbol, or design, or acombination of them, intended to identify the goods or services of oneseller or grou! of sellers and to di0erentiate them from those ofcom!etitors .
. 1olden Arch of (cDonald2s
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De*nition of Brand 12
"he$esE Brand as a Co$/an>
Recognia+.e cor/orate na$e and i$age Cu.ture, /eo/.e, /rogra$s of the organiation de*ne cor/orate /ersona.it C7O is the +rand $anager
5roduct .ines +ene*t fro$ cor/orate /ersona.it Con#e consistent $essage to the sta'eho.ders
7g : "ata 8rou/ of Co$/anies
G Brand as a 6horthand>
@ir$ stresses <ua.it not <uantit of infor$ation @aci.itate infor$ation /rocessing, s/eed decisions Ra/id. recognie +rand association
7g : 4iranandani=s , RaheNa ? ua.it construction
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De*nition of Brand 12
"he$esH Brand as a Ris' Reducer> con*dence that
eL/ectations are +eing fu.*..ed
7g : Maruti dog i$ited ? fue. ePcient cars7g : Qo one e#er got *red for +uing 9BMQgood eLa$/.e of a +rand that stands for <ua.it
in the $inds of custo$ers and /ro#ides the$with a shortcut in the +uing /rocess that he./s
the$ a#oid ris'
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De*nition of Brand 12
"he$es
IBrand as an 9dentit 6ste$> More than Nust a na$e
Means of de#e.o/ing +rand /ositioning
7g : 99", 99M, 4ar#ard, 9nsead
Brand as an 9$age in consu$er=s $ind>
9$age in consu$er=s $ind is the +rand “ rea.it!7g : su+t. re/ositioning of Brand “ 9"C ! in the $ind of the consu$er ? $ets
"ut %ndia 3irst ? fro$ a cigarette $anufacturing co$/an to a $ar'etde#e.o/er
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De*nition of Brand 12
"he$es Brand as a a.ue 6ste$> Consu$ers decisions are inuenced + /ersona. and cu.tura. #a.ues 9ndi#idua. +rands are re/resentati#e of uni<ue c.usters of #a.ues Brand choices are $ade with the ai$ of satisfing s/eci*c consu$er #a.ues 7g : isha.a Restaurant in Ah$eda+ad, @a+ 9ndia, Cottons
Brand as a 5ersona.it> 5scho.ogica. #a.ues, co$$unicated through ad#ertising and /ac'aging
de*ne +rand=s /ersona.it 6tress #a.ues +eond functiona. Dierent fro$ Nust s$+o.is$ 7g : a..i=s 6arees, Air 9ndia=s MaharaNah, 4ar.e Da#idson
10 Brand as a Re.ationshi/> Brand re.ationshi/ is a .ogica. eLtension of +rand /ersona.it 8rowing recognition and res/ect for each other=s /ersona.it wou.d .ead to
strong +onding and re/eat usage 7g : 9C, 4D@C
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De*nition of Brand 12
"he$es11 Brand as Adding a.ue>
“ a +rand is a /roduct that /ro#ides functiona. +ene*ts /.us added#a.ues that so$e consu$ers #a.ue enough to +u!
“ an identi*a+.e /roduct, ser#ice, /erson or /.ace aug$ented in such
a wa that the +uer or user /ercei#es re.e#ant uni<ue added #a.ueswhich $atch their needs $ore c.ose. !
7g : /ersona. groo$ing /roducts ( 8i..ette ), @air ; .o#e., other/ersona. care /roducts
12 Brand as an 7#o.#ing 7ntit>
Change + stage of de#e.o/$ent : 7g : Mar'eting Mg$t ? 5hi.i/ Kot.er
7g : Mar'eting Mg$t ? 6outh Asian 5ers/ecti#e
7g : 9ncredi+.e 9ndia ca$/aign
Kere.a ? 8od=s Own Countr, Ma.asia ? "ru. Asia, ni<ue. 6inga/ore
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4ow does a +rand e#o.#e &&&
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4ow does a +rand e#o.#e &&&
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Brand
Con#umer6#
erce4tion
irm6# +n4ut#
Bu#ine##.n"ironment Bu#ine##.n"ironment
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%hat is a Brand && 4he sum of all !roductcharacteristics and feelings,
both real and !erceived, thatcreate an im!ression and makea !romise.
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9conic Brands >Brands ser#e an i$/ortant /ur/ose ofdierentiating /roducts or ser#ices of aco$/an fro$ its co$/etitors
6o$e +rands ha#e wor'ed $ore than Nust adierentiating factor and ha#e e#o.#ed asiconic +rands o#er a /eriod of ti$e
9conic +rands are the +rands that e$+od theideas that consu$ers ad$ire and +rands thathe./ the$ eL/ress who the want to +e 9conic+rands +eco$e a /art of the /o/u.ar cu.ture(Doug.as B 4o.t, 200G)
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9conic Brands >4ar.e Da#idson
Coca Co.a4ar.e-Da#idson is rooted in A$erican cu.ture and #a.ues 9t
has +eco$e a s$+o. of Srugged indi#idua.is$, freedo$ andre+e..ion= 4ar.e Da#idson=s +iggest asset is its $ar<ue+rand which stands for attitude and .ifest.e 9ts +rand na$ehas recognition status ri#a.ed on. + the $u.tinationa.+rands .i'e Coca-Co.a, i'e, McDona.d=s etc (Anita M, 200)
9ndian 9conic Brands &Rooh Afa &
A$u. &
An Other &
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Brand 4ierarch 5ra$id
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Beliefs &
Core
Values
Benefits
Features &Attributes
The emotional beliefs andvalues that consumers feel
are being addressed by our
brand (CENTRAL
The functional and emotional benefits that our
!roduct"services !rovides to
the consumer
(E#$RE%%'E
$roduct"%ervice featuresand"or attributes that must be
addressed (FNCT)NAL
'ery meaningful in
differentiating our Brand but
very difficult to deliver
consistently to our
consumers
Easy to deliver and e*!lainto consumers but also easy to
imitate
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$argest 1rowth 5!!ortunity
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UNAWARE
NAME AWARENESS
BRAND FAMILIARITY
TRIAL
ACCEPTANCE
USAGE
REGULAR USAGE+deal Brand State
Birth of a Brand
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$argest 1rowth 5!!ortunity
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UNAWARE
NAME AWARENESS
BRAND FAMILIARITY
TRIAL
ACCEPTANCE
USAGE
REGULAR USAGE
• +
Conversion
• Longevity• ,ar-et $resence
• Communication ntrusiveness
+ Conversion• ,essage Communication
+ Conversion • $ersuasion & nterest
• Trial nducement $romotions
+ Conversion• Benefit Communication".elivery
• Benefit m!ortance
+ Conversion • $roduct $erformance
+ Conversion • ni/ueness• Relevance
• 'alue• Loyalty Building $romotions
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%hat creates a successfu. +rand &&
QBrand $anage$ent is no .onger eLc.usi#e.the res/onsi+i.it of $ar'eting tea$s "odaTs
.eading +rands are created using anintegrated a//roach to sa.es, custo$er
ser#ice, and $ar'etingQ
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Cha..enges in Brand Manage$ent1 6a## Custo$ers
2 More Co$/.eL +rand fa$i.ies and /ortfo.ios
E Maturing $ar'ets
G 9ncreasing co$/etition
H DiPcu.t in dierentiatingI Decreasing +rand .oa.t
8rowth of /ri#ate .a+e.s
9ncreasing trade /ower
@rag$ented $edia
10 ew co$$unication o/tions11 9ncreasing /ro$otiona. eL/enses
12 6hort ter$ /erfor$ance orientation
1E 9ncreasing No+ turno#er
1G 9ncreasing cost of /roduct introduction
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6trategic Brand Manage$ent 5rocess>6te/ 1 : identif and esta+.ish +rand /ositioning
and #a.ues
5oints of /arit and /oints of dierence
Core +rand #a.ues
6te/ 2 : /.an and i$/.e$ent +rand $ar'eting/rogra$s
MiLing and $atching +rand e.e$ents
9ntegrating +rand $ar'eting acti#ities
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6trategic Brand Manage$ent 5rocess>6te/ E : $easure and inter/ret +rand /erfor$ance
Brand audit
Brand trac'ing
6te/ G : grow and sustain +rand e<uit
Brand ? /roduct $atriL
Brand reinforce$ent and re#ita.iation
Brand /ortfo.ios and hierarchies
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Choosing Brand
7.e$ents
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Brand Elements
Brand name logo symbol
MemorabilityMeaningfulnessLikeabilityprotectability
packaging slogan
De#e.o/ing Mar'eting 5rogra$s
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De#e.o/ing Mar'eting 5rogra$s>
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Mktg Program
product price Distribution channelscommunicatio
Tangible and intangible benefits
Value perception
Integrate push and pull strategies
Media plannin
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Cause Re.ated
Mar'eting
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"A"A "7A
"AA#$ R%
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"AA#$ R%“7#er $orning don=t Nust get u/, wa'e u/!
6ocia. Awa'ening
7$otiona. Connect
uestioning the 6ste$
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'A 'A "A # R ( '
(
)A ' RA
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A(R*%+
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A(R*%+
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9CR7D9B7 9D9A• Ministry of 'ourism
#o-t of (ndia
• Atithi e-o Bha-a• Amir !han
• Aim 'o a-oid tourists to
be Mistreated, *heatedand rudely dealt with
• (ncrease tourism
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e#erage 6econdar AssociationsCo$/an ? fro$ the 4ouse of "ata
Countr of origin ? 8er$an 7ngineering -o.'swagen
Channe. of distri+ution ? A$wa, "u//erware
Other +rands ? uL, iri., Do#e
7ndorser ? Medica. Counci. of 9ndia, B96 Mar's,
96O 001 Certi*cation Mar's7#ents around +rand ? fe$ina Miss 9ndia,
ead 9ndia
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5ossi+.e outco$es8reater .oa.t
ess #u.nera+.e to co$/etition
arger $argins
More e.astic res/onse to /rice decrease
More ine.astic res/onse to /rice increase
8reater trade coo/eration and su//ort
9ncreased $ar'eting co$$unicationeecti#eness
5ossi+.e .icensing o//ortunities
More fa#ora+.e +rand eLtension e#a.uations
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De*nition of Re-5ositioning
Re-/ositioning is the $ar'eting$anage$ent
/rocess of changing, /artia.. or tota..,the
/erce/tion of the /u+.ic a+out a *r$through
an $odi*cation or addition to one or$ore of
its contro..a+.e #aria+.es ( $ar'eting$iL ) to
co$/. with its changing uncontro..a+.e
#aria+.es ( eg : custo$er, co$/etition,
e-5 i i i
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5ositioning
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%h t i B d
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%hat is Brand
oa.t &&De)nitions on the web 6
“ A strong. $oti#ated and .ong standing decisionto /urchase a /articu.ar /roduct or ser#ice !
“ "he degree of consu$er /reference for one +randco$/ared to its c.ose su+stitutes !
“ "he degree to which a custo$er is .oa. to agi#en +rand in that the are .i'e. to re-/urchase 3re-use in the future "he .e#e. of .oa.t indicatesthe degree to which a +rand is /rotected fro$ itsco$/etitors !
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%hat is Brand oa.t &&
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%hat is Brand oa.t && Research based de)nition 6
“ Custo$er oa.t is #iewed as the strength
of the re.ationshi/ +etween an indi#idua.=sre.ati#e attitude and their re/eated /atronage! Dick Basu #++7.
Dick Basu (odel of $oyalty * #++7
Repeat Purchase
Hih !o"
Re#ati$e
%ttitu&eto"ar&s
'ran&
Hih TrueLoyalty
LatentLoyalty
!o" Spurious
Loyalty
No Loyalty
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'han/ )ou An uestions &&&&