BRAND EQUITY, BRAND POSITIONING, BRAND ELEMENTS

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Resonance, Judgments, Feelings, Performance, Image, Salience

Two Case lets on Brand Management

Boost : GSK

Bacardi

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New Product Development

HMM ( Smithkline Beecham Consumer Healthcare), GSK ( Glaxo

SmithKline), Horlicks

Malted Milkfood Market ( 1972 )

Bournvita 75 % Ovaltine 18% Others - 7 %

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Product Brief

Product should have a distinctive taste to suit the Indian palate. It must not

be a me too product.

No sugar should be added. The quantity of cocoa to be used should be minimal. The product should be granular and look like any other brown Milkfood powder.

The end price should be equal to the brand leader.

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Product Development

Technical department developed a brown Milkfood with two flavour variants

HC44( malt extracts) , HC3 ( Horlicks as the main ingredient)

IMRB Blind in-hall test Preference for HC44, better than Ovaltine but lost out to Bournvita The bitter/medicinal taste should be eliminated

Product purchase dimensions

Taste Flavour ( particularly a chocolate flavour ) Sweetness levels

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Packaging

Glass Jar would give a distinctive image, as all existing brown powders

were being marketed in tins.

In India, after-use of a container is a very strong selling points for a housewife.

Costwise, glass jar would be cheaper than a tin.

It was stressed that the mouth of glass jar should be wide enough for a housewife to put her hand inside the jar so that its after use value is enhanced.

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Brand Name
Names Tested Overall Preference Suitability for brown Milkfood

Boost Brownie Bruno

Revenaq Solo Tango Tiger Vita-Plus Zip

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Label & Logo Design

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From the Makers of Horlicks

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Advertising Campaign
Brief

Brown powder as milk additives, Children/Mothers as TG

Clutter in Milkfood market energy, strength, nourishment.

The campaign should project some unique features

Ensure brand cannibalization does not happen ( Horlicks) Taking into account the fact that there could be any analogy between the fuel needed by a steam engine and the energy giving food needed by a growing child, I have tried to bring a link between the two types of energy so as to make it visually attractive and memorable Creative Director, JWT
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Marketing Inputs - Kerala

Local excitement was created through processions of elephants announcing

the introduction of Boost.

Liquid sampling of boosts. A trade deal, with every case of 18 bottles, one 450 gm boost bottle free. Display contests were conducted at selected outlets. Media Plan

Primary Media Press, Cinema Secondary Media - radio, hoarding

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Consumer Offtake

Bournvita 49%

Ovaltine 8%
Boost 40% Others 3%

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Advertising Research ( 939 households)

Brand Awareness 90 % Major sources of advertising recall were : Newspapers ( 59%), radio ( 49%), cinema (24%) and shop displays ( 21%).

Boost as a family drink children, housewife, husband. Usage pattern before going to bed ( 49%), at breakfast time ( 38%), before going to work/school 23%

Boost better than ( Bournvita and Ovaltine users) slightly better than Bournvita in taste, miscibility. Brand Switch 49 % , 23 % Bournvita & Horlicks

Packaging liked, Makers of Horlicks didnt seem to be a factor influencing brand trial.
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Challenge

Trying to develop a visual which would depict a railway engine and then

tie it up with a beverage. Somehow the two did not seem to aesthetically
blend.

Indian Arm : Energy Fuel, showed a train with a bottle of Boost with

passengers.

On a Sunday morning, while sitting in my room, I saw young children playing games they had formed what could be called a human train.

They started jogging and began to make the typical chugging noise of a
train. Indian Creative Team
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Brand Equity

Brand equity can be thought of as the additional cash flow achieved by associating

a brand with the underlying product or service

(Biel 1992)

Brand equity is a set of brand assets and liabilities linked to a brand, its name, and symbol, that adds value to or subtracts from the value provided by a product or service to a firm and/or to that firms customers (Aaker 1991)

The differential effect the brand

knowledge has on consumer response to

Keller, 2004
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marketing of that brand

Brand Equity

Equals summation of Brand Assets & Brand Liabilities*

Liability will take on the negative sign though.

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Need to build brand equity

It positively impacts consumers willingness to pay price premiums.

It leads to higher efficiency and effectiveness of their marketing

programs.

Apple didnt spend much on Marketing in India while launching iPhone owing to its strong brand equity.

It positively impacts the companys Market share, Market Capitalization. It results in improved future profits and long-term cash-flow. It can build brand loyalty( Reduces Churn), which in turn reduces marketing costs
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It can deliver Emotional, Safety, Prestige, or other benefits that are

important to consumers.

It reduces the anticipated risk, enhances anticipated confidence in the brand purchase decision, and increases satisfaction with the brand.

It leads to sustainable competitive advantage.

Strong brand equity can help in achieving success for new products launched as brand extensions.

Tata as a Brand, Wipro, New Coke, Harley Davidson ( * Brand Failures Matt Haig)
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Brand Knowledge

Brand knowledge consists of a brand node in memory with a variety of

associations linked to it.

Brand knowledge has two components: brand awareness and brand image.

Brand Image of Yamaha

Performance

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Sources of Brand Equity

Brand awareness

Brand recognition Brand recall

Brand image

Strong, favorable, and unique brand associations

Brand Awareness, Brand Loyalty, Perceived Quality, Brand Association Customer Touchpoints, Word Of Mouth, Buzz Marketing, Impressions generated through ATL, BTL, Social Media. ( Online Reputation Management)
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The media environment surrounding consumers

Video websites

SNS and blogs

Mobile sites and Seg broadcasting TV (terrestrial, BS, and CS)

Internet Free newspapers and magazines Newspapers Consumer OOH

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Daily Life of a person in a Tier 1 City

Station

Ticket wicket

Stairs/platform

Inside train car

Home

Vending machine

Office

Inside train car

Stairs/platform

Ticket wicket

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Station

Experience with the BRAND

At Customer touchpoints Service centers After Sales Service Product Usage Employee

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Brand Awareness Advantages

Learning advantages

Register the brand in the minds of consumers

Consideration advantages

Likelihood that the brand will be a member of the consideration set

Search ( AIDSAS Model)

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Brand Equity Models

David A. Aaker Kevin Lane Keller

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Customer-Based Brand Equity Pyramid

4. RELATIONSHIPS = RESONANCE What about you and me?

3. RESPONSE = JUDGMENTS FEELINGS

What about you?

2. MEANING = PERFORMANCE IMAGERY What are you?

SALIENCE

1. IDENTITY =

Who are you?

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Sub-Dimensions of CBBE Pyramid

LOYALTY ATTACHMENT COMMUNITY ENGAGEMENT

QUALITY CREDIBILITY CONSIDERATION SUPERIORITY

WARMTH FUN EXCITEMENT SECURITY SOCIAL APPROVAL SELF-RESPECT

PRIMARY CHARACTERISTICS & SECONDARY FEATURES PRODUCT RELIABILITY, DURABILITY & SERVICEABILITY SERVICE EFFECTIVENESS, EFFICIENCY & EMPATHY STYLE AND DESIGN PRICE

USER PROFILES PURCHASE & USAGE SITUATIONS PERSONALITY & VALUES HISTORY, HERITAGE & EXPERIENCES

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CATEGORY IDENTIFICATION NEEDS SATISFIED

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Salience Dimensions

Depth of brand awareness

Ease of recognition and recall Strength and clarity of category membership What is level of brand awareness when you think about the Brand Google

vis-a-vis IBM?

Breadth of brand awareness

Purchase consideration Consumption consideration

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Depth and Breadth Importance

The product category hierarchy shows us not only the depth of awareness

matters but also the breadth.

The brand must not only be top-of-mind and have sufficient mind share, but it must also do so at the right times and places.

Tropicana : We want consumers to recognize the Tropicana Brand when it is

presented to them. Beyond that they should think of Tropicana whenever they think of orange juice, particularly when they are buying orange juice. They

should think of Tropicana whenever they are buying any beverage, especially
when seeking a tasty but healthy beverage.
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Beverages

Water

Flavored

Non Alcoholic

Alcoholic

Milk

Juices

Hot Beverages

Soft Drinks

Energy Drink

Wine

Beer

Distilled Spirits

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Brand Salience

A highly salient brand is one that has both depth and breadth of brand

awareness.

Brand Meaning

Major categories of Brand Associations

Brand Performance & Brand Image

These associations can be formed directly, from a customers own experiences and contact with the brand, or indirectly through source of information, such as word of mouth.

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Performance Dimensions

Primary characteristics and supplementary features Product reliability, durability, and serviceability Service effectiveness, efficiency, and empathy Style and design Price

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Brand Performance

How well the product or service meets customers more functional needs.

Reliability measures consistency of performance over time and from

purchase to purchase.

Durability expected economic life of the product

Serviceability ease of repairing the product if needed

Service Efficacy speed and responsiveness of service Service effectiveness how well the brand satisfies customers service requirements

Service empathy extent to which service providers are seen as trusting, caring and having the customers interests in mind.
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Brand Imagery

Extrinsic properties of the product or service

Measures ability to meet customers psychological or social needs.

Its the way people think about the brand abstractly

Nivea skin cream in Europe ( Rich Brand Imagery), few intangible associations are

Family/shared, shared experiences/maternal, multipurpose, classic/timeless, childhood memories

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Imagery Dimensions

User profiles Demographic and psychographic characteristics Group perceptionspopularity Purchase and usage situations Type of channel, specific stores, ease of purchase Time (day, week, month, year, etc.), location, and context of usage Personality and values Sincerity, excitement, competence, sophistication, and ruggedness History, heritage, and experiences Nostalgia Memories

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Brand Imagery

Microsoft as an aggressive company.

Apple Inc. cool and innovative

Dominos pizza channels of distribution : 30 min Delivery

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Judgment Dimensions

Brand quality

Brand consideration

Value Satisfaction

Relevance

Brand superiority

Brand credibility

Differentiation

Expertise Trustworthiness Likeability

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Feelings Dimensions

Warmth Hallmark Fun Disney Excitement - MTV Security LIC

Social Approval Mercedes

Self-respect Tide

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Resonance Dimensions

Behavioral loyalty Frequency and amount of repeat purchases Attitudinal attachment Love brand (favorite possessions; a little pleasure) Proud of brand Sense of community Kinship Affiliation Active engagement Seek information Join club Visit website, chat rooms

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Joint Branding programmes

Perceived Advertising spending

Brand knowledge

Corporate Societal Marketing

Brand associations

Brand elements

Perceived quality

Building Brand Equity

Brand community

Brand loyalty

Country-oforigin Company image

Endorsements Events, third party Distribution channels

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Brand Positioning
. . . the act of designing the companys offer and image so that it occupies a distinct and valued place in the target customers minds. Philip Kotler

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Bacardi: : Brand Positioning Concepts

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Bacardi

Brand Objective : As an icon of new age drinking

Conceptual target : Post liberalization young adults.

Core Desire : Unshackle themselves Role of the product :

Functional Relaxant, Social Lubricant, Gives a high Symbolic Let your hair down have fun

Reason to believe Less intense in looks, hence eminently adaptable to broader drinking occasions.

Brand Essence : Vibrant Sensuality

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Positioning Concepts

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The Bacardi Bat

Brand Elements

Creative Strategy/ story behind this trademark Symbol

Colony of fruit bats living in the rafters of the first Bacardi distillery Donna Amalia , who was cultured in the arts believed that Bat represented a blessing of good health, fortune, and family unity.

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Determining a frame of reference

What are the ideal points-of-parity and points-of-difference brand

associations vis--vis the competition?

Marketers need to know:

Who the target consumer is Who the main competitors are How the brand is similar to these competitors How the brand is different from them

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Target Market

A market is the set of all actual and potential buyers who have sufficient

interest in, income for, and access to a product.

Market segmentation divides the market into distinct groups of homogeneous consumers who have similar needs and consumer behavior,

and who thus require similar marketing mixes.

Market segmentation requires making tradeoffs between costs and benefits.

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Example of the toothpaste market

Four main segments:

Sensory: Seeking flavor and product appearance

Sociables: Seeking brightness of teeth Worriers: Seeking decay prevention Independent: Seeking low price

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Core Brand Associations

Abstract associations ( attributes & benefits) that characterize the 5 to 10

most important aspects of dimensions of a brand, they can serve as the

basis of brand positioning in terms of how they create points of parity and points of difference.

Ask consumers to create a detailed mental map of the brand. ( Ask for topof-mind brand associations)

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MTV Core Brand Associations

Music: Whats hot and whats new

Community : Shared Experience

Credibility: Expert, trusting, reality

Personality : Hip, Cool , Irreverent Accessibility : Relevant, for everyone

Fluidity - Always Changing &

evolving

Spontaneity: up-to-the minute, Immediate

Interactivity : Connected & Participatory

Originality: Genuine, Creative Modern : Hip & Cool

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Young Fun & Entertaining

Hip & Cool

Original MTV

Irreverent & Rebellious

Connected

Music

Lifestyle

Popular
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Brand Mantras/brand essence/core brand promise

Heart & soul of the brand

A short 3-5 word phrase that captures the irrefutable essence of spirit of the
brand positioning

E.g.. McDonalds Brand Philosophy : Food, Folks, and Fun

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Brand Mantra of Nike & Disney

Emotional Modifier
Nike Disney Authentic Fun

Descriptive Modifier
Athletic Family

Functional Modifier
Performance Entertainment

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Brand Mantras

Brand functions term describes the nature of the product or service or the

type of experiences or benefits the brand provides.

Descriptive modifier further clarifies the nature Nikes performance is not just any kind ( not artistic performance, for instance) but only athletic performance , Disneys entertainment is not just any kind ( not adult oriented) but only family entertainment

Emotional Modifier provides another qualifier how exactly does the brand
provide benefits and in what ways?
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Points-of-Parity and Points-of-Difference

Points-of-difference (PODs) are attributes or benefits that consumers

strongly associate with a brand, positively evaluate, and believe that they
could not find to the same extent with a competitive brand.

Points-of-parity associations (POPs), on the other hand, are not necessarily

unique to the brand but may in fact be shared with other brands.

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Core Brand Values

Set of abstract concepts or phrases that characterize the five to ten most

important dimensions of the mental map of a brand

Relate to points-of-parity and points-of-difference

Mental map Core brand values Brand mantra

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Brand Mantras

An articulation of the heart and soul of the brand similar to brand essence or core brand promise Short three- to five-word phrases that capture the irrefutable essence or spirit of the brand positioning and brand values

Considerations

Communicate Simplify Inspire

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Designing the Brand Mantra

The term brand functions describes the nature of the product or service or

the type of experiences or benefits the brand provides.

The descriptive modifier further clarifies its nature. The emotional modifier provides another qualifierhow exactly does the brand provide benefits, and in what way?

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Designing the Brand Mantra

Emotional Modifier

Descriptive Modifier
Athletic

Brand Functions
Performance

Nike Disney

Authentic

Fun

Family

Entertainment

Fun
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Folks
3.80

Food

Internal Branding

Members of the organization are properly aligned with the brand and what it represents.

Crucial for service companies

Example : Microsoft B Testing Dog Food

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Brand Audit
Externally, consumer-focused assessment

A comprehensive examination of a brand involving activities to assess the

health of the brand, uncover its sources of equity, and suggest ways to improve and leverage that equity

It includes brand vision, mission, promise, values, position, personality, and

performance

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Brand Inventory

A current comprehensive profile of how all the products and services sold by a company are branded and marketed:

Brand elements Supporting marketing programs Profile of competitive brands POPs and PODs Brand mantra

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Brand Inventory (Cont.)

Suggests the bases for positioning the brand Offers insights to how brand equity may be better managed Assesses consistency in message among activities, brand extensions, and subbrands in order to avoid redundancies, overlaps, and consumer confusion

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Brand Exploratory

Provides detailed information as to how consumers perceive the brand:

Awareness Favorability Uniqueness of associations

Helps identify sources of customer-based brand equity Uncovers knowledge structures for the core brand as well as its competitors

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Suggested Brand Audit Outline

Brand audit objectives, scope, and approach Background about the brand (self-analysis) Background about the industries Consumer analysis (trends, motivation, perceptions, needs, segmentation, behavior) Brand inventory

Elements, current marketing programs, POPs, PODs Branding strategies (extensions, sub-brands, etc.) Brand portfolio analysis

Competitors brand inventory

Strengths and weaknesses
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Brand Audit Outline (Cont.)

Brand exploratory

Brand associations
Brand positioning analysis Consumer perceptions analysis (vs. competition)

Summary of competitor analysis

SWOT analysis Brand equity evaluation Strategic brand management recommendations
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CHOOSING BRAND ELEMENTS TO BUILD BRAND EQUITY

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Criteria for Choosing Brand Elements

Memorability

Meaningfulness
Likability Transferability Adaptability Protectability

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Memorability

Brand elements should inherently be memorable and attention-getting, and

therefore facilitate recall or recognition.

For example, a brand of propane gas cylinders named Blue Rhino featuring a powder-blue animal mascot with a distinctive yellow flame is likely to

stick in the minds of consumers.

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Meaningfulness

Brand elements may take on all kinds of meaning, with either descriptive or

persuasive content.

Two particularly important criteria

General information about the nature of the product category

Revital

Specific information about particular attributes and benefits of the brand

Move

The first dimension is an important determinant of brand awareness and salience; the second, of brand image and positioning.
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Meaningfulness

Brand Names based on People, Animal, Birds, objects et al.

Bird Kingfisher
River Amazon Animal Red Bull

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Likability

Do customers find the brand element aesthetically appealing?

Descriptive and persuasive elements reduce the burden on marketing

communications to build awareness.

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Transferability

How useful is the brand element for line or category extensions?

To what extent does the brand element add to brand equity across
geographic boundaries and market segments?

Exxon Mobile Amazon Books R Us

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Adaptability

The more adaptable and flexible the brand element, the easier it is to

update it to changes in consumer values and opinions.

For example, logos and characters can be given a new look or a new design to make them appear more modern and relevant.

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Protectability

Marketers should:
1.
2.

Choose brand elements that can be legally protected internationally.

Formally register chosen brand elements with the appropriate legal bodies.

3.

Vigorously defend trademarks from unauthorized competitive infringement.

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Brand Name Taxonomy

Descriptive Suggestive Compounds Classical Arbitrary Fanciful Describes functions literally; Singapore Airlines, KFC Kentucky Fried Chicken, Pizza Hut Suggestive of a benefit or function; Agilent Technologies Combination of two or more unexpected words ; Redhat Based on Latin, Greek or Sanskrit; Meritor Real words with no obvious tie-in to company; Apple, Google Coined words with no Obvious meaning; Avanade

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Criteria for choosing brand elements

Memorable Easily Recognized Easily Recalled Descriptive Persuasive Fun & Interesting Rich Visual and Verbal Imagery Aesthetically Pleasing

Meaningful Likable

Transferable
Adaptable Protectable

Within and across product categories Across Geographic boundaries & Cultures
Flexible Updatable Legally Competitively
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Branding Mishaps

Coor Beer Turn it loose

Spanish Suffer from Diarrhea

Frank Perdue : It takes a tough man to make a tender chicken.

Spanish: It takes an aroused man to make a tender chicken

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Sample Suggestive Brand Names

ColorStay Lipsticks Head & Shoulders Shampoo Close up Toothpaste SnackWell reduced fat snacks DieHard Auto batteries

Mop & Glo Floor wax

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Tactics for Brand Elements

A variety of brand elements can be chosen that inherently enhance brand awareness or facilitate the formation of strong, favorable, and unique brand

associations.

Brand names URLs

Logos and symbols

Characters Slogans

Packaging

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Brand Laddering Technique

How to brand a Mineral water?

Brand Name
Tagline

Innovative Consume Touchpoints

Media Planning

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URLs

URLs (uniform resource locators) specify locations of pages on the web and are

also commonly referred to as domain names.

A company can either sue the current owner of the URL for copyright infringement, buy the name from the current owner, or register all conceivable

variations of its brand as domain names ahead of time.

www.aisapaisa.com Snapdeal www.writeuri10story.com www.justdial.com

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http://www.bestindiansites.com/

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Website details

www.cricbuzz.com www.cricinfo.com www.makemytrip.com

www.magicbricks.com www.indiancarrental.com/ www.savaari.com/

www.justdial.com
www.santabanta.com www.naukri.com www.makaan.com

www.cardekho.com/usedCars
www.carwale.com/

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Logos and Symbols

Play a critical role in building brand equity and especially brand awareness

Logos range from corporate names or trademarks (word marks with text
only) written in a distinctive form, to entirely abstract designs that may be completely unrelated to the word mark, corporate name, or corporate

activities

IBM Corporation has a logo because the design is based on a letterform, whereas Apple Corporation has a symbol because the design is based on a

pictorial image of an apple.

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Difference between a Logo & a Symbol

Logo is the short version of logotype. It is the name of a business designed

specifically for that company.IBM, written in blue stripes, is a logo. A

symbol is just that. A symbol (but not the name of the company) that represents that company. The apple with the piece out of it is a symbol of

Apple computers.

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Characters

A special type of brand symbolone that takes on human or real-life

characteristics

Amul Girl Parle G

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Slogans

Slogans are short phrases that communicate descriptive or persuasive

information about the brand.

Slogans are powerful branding devices because, like brand names, they are an extremely efficient, shorthand means to build brand equity

The Citi Never Sleeps

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Jingles

Jingles are musical messages written around the brand. Typically

composed by professional songwriters, they often have enough catchy

hooks and choruses to become almost permanently registered in the minds of listenerssometimes whether they want them to or not!

Jingles are perhaps most valuable in enhancing brand awareness.

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Packaging

From the perspective of both the firm and consumers, packaging must

achieve a number of objectives:

Identify the brand Convey descriptive and persuasive information Facilitate product transportation and protection Assist at-home storage Aid product consumption

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To be continued

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