Brand Building Introduction to Brand

Prof. Chaitali Chandarana

Brand: Meaning
People do not buy products, they buy brands. Successful organizations have the power of their brands as the cornerstone of their success. The word brand has its origin in the Norwegian word 'Brand' which means 'to burn'. In the ancient times farmers used to put bum marks on their livestock to distinguish their possessions

Definition of Brand
A name, a term, a symbol or a design or a combination of these, that is intended to identify the products or services of one business or group of businesses and to differentiate them from those of competitors. The sum of the expectations that a customer or stakeholder has when purchasing a product or dealing with an organization. The brand is a piece of real estate you occupy in a persons mind, and the related impressions it leaves behind.

Interpreations of a Brand
According to de Chernatony & Dall'Olmo Riley (1998), various interpretations can be drawn from a brand. They are as follows I.Input perspective 1. Logo

2. Legal Instrument

3. Shorthand

4. Risk Reducer
5. Positioning

6. Personality
7.Cluster of Values

8. Vision
9. Adding Value

10. Identity

II. Output Prespective: Image Personality III. Time Prespective: Evolving entity Ever Changing Competetion.

More about Branding

Branding is about how business motivates a consumer to make a purchase. When does a brand take on something special and become a super brand or a power brand. There are many instances where brand names become so recognized that they actually become a generic name for that type of product. The key to brand enthusiasm is to move beyond your product's function & build an emotional connection with consumers.

Consumers know brands, express about brands, think about brands, feel about brands, com pare brands, choose brands, recommend brands, reject brands, buy brands, and do not buy brands through a combination of Brand name Brand looks Brand associations Brand personality Brand attitude

Process of Branding
BRAND RELATIONSHIP= BRAND IMAGE + BRAND ATTITUDE BRAND IMAGE = BRAND ASSOCIATION + BRAND PERSONALITY

BRAND ASSOCIATION = BRAND LOOKS + BRAND ATTRIBUTES

BRAND LOOKS = BRAND SYMBOL + BRAND NAME BRAND SYMBOL = BRAND CHARACTER + BRAND LOGO

Advantages to the Producer

Brand loyal customers are a source of repeat sales. A brand enables a company to build a reputation for its products and creates an image in the public mind. It facilitates the introduction to new products in the market. Branding is necessary for the sales promotion and building a demand for the product among the customers in a selective manner. A brand distinguishes and differentiates a product from the goods of competing companies. Branding assists in the maintenance of a proper control over the price, quality and other features of the product.

Limitations for the Producer

The responsibility for maintaining the quality and the standard of the product falls on the producer Some products, such as raw materials, do not easily lend themselves to branding. The manufacturer, in order to create an acceptance of the brand by the consumers, has to incur heavy expenditure. The retailer and the wholesaler may not be willing to stock the goods if the brand is not popular.

Advantages to the Consumers

Brands distinguish and differentiate the goods of different manufacturers and this fact enables the consumers to choose their products. Consumers can finally select the brand they prefer after using different branded goods and develop brand loyalty. The branded goods assure a certain quality and standard Certain brands acquire a great popularity. For the customer, shopping becomes easy and pleasurable,

Limitations for the Consumer

Confusion to choose the appropriate & proper brand. Popular branded goods cost more, which is unreasonable. Sometimes quality and standard deteriorate and are not maintained at the same level. Manufacturers try to pass on sub-standard goods by adopting high pressure sales and advertising campaigns for their brands.

Advantages of Strong Brands

Greater perceptions of product/service performance Greater marketing communication effectiveness Greater customer retention and loyalty More appreciative customer response to price increases and decreases Larger margins Less vulnerability to competitive marketing actions Less vulnerability to marketing crises Greater trade cooperation and support Possible licensing/franchising opportunities Greater brand extension opportunities

Types Of Brands
Manufacturers Brands: Name is owned and advertised by the manufacturer or under their guidelines e.g. Godrej Cold Gold.

Distributors Or Private Brands: Name is owned and controlled by a wholesaler or retailer e.g. Apna Bazar.

ADVANTAGES OF PRIVATE BRANDING to Retailer

Reduce producer domination in the marketplace Customer sales increase Positive image building. An opportunity to differentiate and provide variety More freedom in your pricing strategy Positive control over stock keeping inventory Better bargaining position in a depressed economy

Disadvantages of Private Branding to Retailer

Perceived as less powerful in the marketplace as they dont promote recognised brands Low price equates to low quality Lack of financial support from suppliers If the product fails, the consumer doesnt forgive you A negative backlash on their image Financial control concerns Lower turnover, resulting in lost total sales per linear metre Excessive focus on the private label at the expense of other products

Advantages of Private Branding to Producer

It keeps out a competitor from using this opportunity They can get into the marketplace at a lower cost It is an opportunity for smaller suppliers who dont have the promotional capabilities to enter a bigger marketplace The supplier can get more shelf space in the store. An opportunity to build strategic partnerships with selected retailers .

Disadvantages to Producer
The relationship with the retailer could be threatened if the product doesnt perform Other suppliers may introduce cheaper private labels and drive margins downwards High inventory costs and low profit margins

Advantages to Consumer
A guarantee of the same quality for a serious price differentiation More variety within the category. A trusted retail name equals trust in the product Product provides a need based on a want.

Disadvantages to Consumer
Low quality product.
Previous customer failures could effect the whole private label range in a store e.g. if their cereals arent good, then their jam will be the same.

Why do Brands Matter?

Manufacturers Simplifies handling or tracing Legal protection of unique features Signal of quality level to satisfied customers Means of endowing products with unique associations Competitive Advantage Financial Returns Consumers Identifies the Product Source Assignment of responsibility to maker Search cost reducer Signal of Quality Promise, bond, or pact with the make of the product.

Thank You