Brand Management

Module III
 What is a Brand?
American Marketing Associations definition
A brand is a name, term, sign, symbol, or design which is intended to
identify the goods or services of one seller or group of sellers and to
differentiate them from those of competitors

Attributes that identify the brand are called Brand Elements (based
on people, place, objects, animals, etc.)
Practicing managers define brands as more than that.
This distinction is important since it can lead to confusion.

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 What is a Brand?
Brand versus Product
Product is anything that can be offered to a market for attention,
acquisition, use or consumption that may satisfy a need or a
want (goods, services, retail store, person, organization, idea)

Kotler defines 5 levels of a product

1. Core benefit level fundamental need or want that is satisfied
2. Generic product level basic version attributes necessary for
functioning (stripped down level)
3. Expected product level what customers normally expect
4. Augmented product level additional attributes, benefits that
distinguish it from competition
5. Potential product level all transformation that it might undergo in
the future
 What is a Brand?
A Brand is therefore a Product that also has dimensions that differentiates it from
other products designed to satisfy the same need (competition)

Differences may be -
Rational and tangible related to product performance (3M,
Sony, Gillette)
Symbolic, emotional, intangible related to what the brand
represents (Coca Cola, Calvin Kline, Marlboro)

What distinguishes a brand from a commodity gives it equity - the sum total of
consumer perceptions and feelings about how it performs (3M, Sony, Gillette)
The name and what it stands for
The company associated with the brand
Role of Brands
Consumer Benefits
Identify source/maker
Simplifies decision making
Reduces risk

Marketer Benefits
Simplify product handling
Protect unique features
Create loyalty
Establish barriers to entry
Brand Elements
Brand Names
URLs
Logos
Symbols
Characters
Spokespeople
Slogans
Jingles
Packages
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
Reducing the Risks in Product Decisions

Consumers may perceive many different types of risks in buying and consuming a
product:
Functional riskThe product does not perform up to expectations.
Physical riskThe product poses a threat to the physical well-being or health of
the user or others.
Financial riskThe product is not worth the price paid.
Social riskThe product results in embarrassment from others.
Psychological riskThe product affects the mental well-being of the user.
Time riskThe failure of the product results in an opportunity cost of finding
another satisfactory product.
Importance of Brands to Firms
Identification to simplify handling or tracing
Legally protecting unique features
Signal of quality level
Endowing products with unique associations
Source of competitive advantage
Source of financial returns
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.
What is branded?
Physical goods
Services
Retailers and distributors
Online products and services
People and organizations
Sports, arts, and entertainment
Geographic locations
Ideas and causes
Brand Equity
The tangible and intangible value that a brand
provides positively or negatively to an organization,
its products, its services, and its bottom-line derived
from consumer knowledge, perceptions, and
experiences with the brand. Susan Gunelius
What is Brand Equity?
Brand equity is the added value endowed on products and services,
which may be reflected in the way consumers, think, feel, and act
with respect to the brand.
 Brand Trial

Brand
Brand Preference
Recognition

BRAND
Brand EQUITY
Awareness Brand Loyalty
Brand Equity Models

Brand Asset Valuator

Aaker Model

BRANDZ

Brand Resonance
Brand Equity Model
Aaker Model
- viewed by Professor David Aaker

There are a set of five categories of brand assets and liabilities

which add value to the product.
Brand Awareness
Perceived Quality
Brand Loyalty
Brand Associations
Other proprietary assets
Brand Equity Model
Brand Resonance
- views brand building as an ascending, sequential series of
steps
1. Ensuring identification of the brand with customers minds
with a specific product class or customer need.
2. Firmly establishing the brand into the mind of the consumer.
3. Eliciting proper customer response to in terms of brand
related judgment and feelings.
4. Converting brand response to create an intense, active
loyalty relationship between customers and the brand.
Brand Resonance Pyramid
Brand Equity Model
Brand Salience
- how often and how easily customers think of the brand
under various purchase or consumption situations
Brand Performance
- how well the product or service meets customers
financial needs
Brand Imagery
- describes the extrinsic properties of the product or
service, including the ways in which the brand attempts to
meet the customers psychological or social needs.
Brand Equity Model
Brand Judgment
- focus on customers own personal opinions and
evaluations.
Brand Feelings
- customers emotional response and reactions with respect
to the brand
Brand Resonance
- nature of the relationship customers have with the brand
and the extent to which they feel theyre in sync with it.
Brand Identity
Identify who you are ?

100% agreed that the slogan "i'm lovin' it" belongs

only to McDonald's
Depth
88% can identify with McDonald's trademarks, most
notably the "i'm lovin' it
41% say the synonym of BURGER is McDonalds

Consumers link to McDonald's when they want to

Breadth

eat something Tasty, Fast & Clean.

Covers broad amount of Demands
More than 60% think of McDonald's when want a
Quick Bite
Brand Meaning
What are you?

48% agreed McDonald's Burger has best Taste

Imagery Performance
78% say McDonalds is the best Fast Food Chain
Consumer rate McDonalds Highest for Quality
Standards & Value for Money
Majority Consumers visit McDonalds for a Quick Bite
Offers Free Wi-Fi, 24*7 & Drive-Thru Locations
specific
McDonalds has Consumer of all Age Groups
46% never had a bad experience with McDonalds
50% more preferred when with Friends
14% eat @ McDonalds after Shopping/ Movies
McDonalds is Fun, Efficient & Convenient
Consumer Brand Response
What about you?

63% trust McDonald's for Quality Service, Cleanliness

Judgment
& Value
McDonalds is the First Choice for Burgers
McDonalds will retain 44% consumers even if they
start selling Pizza instead of Burgers
56% Love McDonalds as a brand
Feeling

More than 48% feel Comfortable @ McDonalds

Kids feel Excited & Happy when @ McDonalds
Fun place to go with friends
Consumer Brand Resonance
What about you & me?

Loyalty, Attachment
Consumer recognize McDonalds all over the world
37% go to McDonalds once a month
31% consumer will be present for a McDonalds event
4% wont go to any other fast food restaurant
CBBE Pyramid
Regular
& repeat
Purchase

Loved Fun,
Brands stands Warmth,
for quality service Excitement

Widely Spread

.
Across Locations, Serves All age group,
Convenient & Serves Quick Pleasant Experiences
Burgers.
Famous International Fast food chain, Mostly Sells Burgers.
Building Brand Equity
Three Main Factors
1. The initial choices for the brand elements or identities
making up the brand (brand names, URLs, logos, symbols,
characters, spokespeople, slogans, jingles, packages, and
signage)
2. The product and service and all accompanying marketing
activities and supporting marketing programs
3. Other associations indirectly transferred to the brand by
linking it to some other entity (a person, place, or thing)
Measuring Brand Equity
Brand Audits
- consumer-focused series of procedures to assess the health of
the brand, uncover its source of brand equity, and suggest ways to
improve and leverage its equity
Brand Tracking Audits
- collects quantitative data from consumers over time to
provide consistent, baseline information about how brands and
marketing programs are performing
Brand Valuation
-the job of estimating the total financial value of the brand.
Devising a Branding Strategy

Develop
Develop new
new brand
brand
elements
elements

Apply
Apply existing
existing brand
brand
elements
elements

Use
Use aa combination
combination of
of
old
old and
and new
new
Branding Decisions - Deciding on
Brand Name
Suggest something about the products benefits
Suggest product qualities
Easy to pronounce
Distinctive
Not carry poor meaning in other countries

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 Meaningfulness

# Brand names could be based on people, places, animals, birds or

other things or objects.
# When choosing a brand name, two important aspects that must be
kept in mind are:
A) General information about the nature of the product
category. In other words, is the content of the brand
element consistent with what consumers would expect to
see from a brand in that product category?
 B) Specific information about particular attributes and
benefits of the brands. Does it suggest something
about a product ingredient or the type of person who
might use the brand.
Acronyms/Abbreviations
Some companies like to use long, descriptive names to
identify who they are and what they do. Acronyms are
often used to make longer names more friendly and easier
to remember. In most cases, the customers are the ones
who start using the acronym for their own convenience.
This method works particularly well if you have a long
company name whose first letters of each word form a
brand new, pronounceable word.
 Examples
Ikea - Ingvar Kamprad Elmtaryd Agunnaryd (Swedish) example of
how an acronym can form a new word.
UPS United Parcel Service
MTV Music Television
BBC
CNN
 Conjoined (combined or portmanteau)
A conjoined brand name occurs when a brand name contains more
than one than word to form something new. Typically, the combined
name gives two different meanings or understanding to the new. Its a
good alternative to an acronym, especially if you dont want to
deliberately spell out what you do, and still be clear and inventive.
 Examples
FedEx
PayPal
Coca-Cola
Microsoft
 Descriptive
Descriptive brand names can effectively communicate what a brand
does. On the downside, it can result in your customers finding your
competitors. They are also are very hard, if not impossible to get
trademarked.
 Examples
Pizza Hut
General motors
The Body Shop
Readers Digest
 Invented and Playful
Invented names can be quite fun and interesting to come up with.
They can be playful, weird, catchy theres less boundaries and
limitations
While descriptive brand names make it easy for potential customers
to find your competitors, invented make it difficult for them to
find you. They demand much more marketing because they are
harder to remember and less descriptive.
 Think about it When Google first came about I remember thinking to myself, hey,
thats a pretty funny name, but what they heck is it?!. But a good marketing strategy
(and loads of money) emerged them from under the woodwork.
Examples:
Google
Yahoo!
Pepsi
KitKat
 Metaphorical
Brands telling a story to convey its meaning

Typically the stories are surrounded with emotional words or feelings on how
they want their customers to feel or how they differentiate themselves from their
competitors.
Use names that embark feeling or emotion or have an underlying story or
message.
 Examples
Starbucks
Orange (cellular service)
Apple
Larsen & Toubro
 Founder or Origin
Ive been seeing a lot more freelance designers lately creating their
brand around their own name. While this method is easily
trademarkable (is that even a word?), it can create the same problem
as invented names we all can relate to the struggle of getting our
name out there.
In my opinion, using your own name is much more inviting and
friendly It puts a face to a company.
 Examples
Adidas
Johnson & Johnson
JPMorgan
Charles Schwab
Types of Brand Name Strategies
Individual Names

Blanket Family Names

Separate Family Names

Company Trade Name with Individual Product Names

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Individual Names

Firm does not tie its reputation to the products that it produces.
The companies image is not hurt if the product fails or seems low quality

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Individual Names

General Mills consists of 37 different well known brands

within the firm.
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Blanket Family Names
Family brand names involve the opposite strategyincluding the
firms' total product mix under one family name. The corporate name,
rather than the brand name, is emphasized in order to leverage the
high-quality name of the organization. This can reduce advertising and
marketing costs.

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Separate Family Names
This strategy associates a strong corporate entity with a brand while
maintaining the brand's individuality. If successful, it provides the
advantages of both a family brand name and an individual brand
name strategy.

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Company Trade Name with Individual
Product names
Product-line brand names involve a strategy midway between an
individual brand name and a family brand name strategy. All brands
within the product line have a common name. Product-line brand
names are used when a company produces diverse product lines that
require separate identification

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 Searching for a brand name is like
searching for a wife there are lots
of choices, but the best ones have
already been taken
The wit
Brand identity
Brand identity is a unique set of brand associations that the brand
strategists aspire to create or maintain
These association represents what the brand stands for and imply a
promise to the customers from the organization members
Brand Identity
The conception of brand identity was mentioned for the first time in
Europe by Kapferer, 1986.
The importance of the conception and its understanding quickly
disseminated in the entire world.
Brand identity
According to J. Kapferer, brand identity could be de-fined by answering the
following questions:

- What is the aim and individual vision of a brand?

- What makes a brand distinguished?
- How satisfaction could be achieved?
- What is brands equity?
- What are brand competence, validity and legitimacy?
- What are the features of its recognition?
Brand identity prism
THE SIX SIDED PRISM
Jean Noel Kapferer proposed brand identity based on a prism
having six elements. It also sums up the various tangible and intangible
aspects of the brand.

PHYSIQUE this forms the basis of the brand.

PERSONALITY personality here means personification of the brand.
The brand personality is perceived as a person or an animal.
CULTURE the country of origin of the brand that is seen as a product
attribute forms the culture.
RELATIONSHIP it is the understanding between the consumer and
the organization.
REFLECTION this is the consumers perception of the brand and its
values.
SELF-IMAGE this is about what the consumer thinks about himself or
herself.
 Brand Identity Prism - Nike
Physical product Personality
Sports and Like Jordan, Woods
fitness

Relation Culture
Sponsorship, American
Ethics Just do It!

Reflection Self image

Aggressive, Cool
Provocative, Athlete
In-your-face
 Brand Identity Prism - Adidas
Physical product Personality
Sports and Traditional, Conser-
fitness vative, Collective

Relation Culture
Quality and European
Heritage Traditional

Reflection Self-Image
True sportsmanship Relates more to
Strong work ethic competing than to
A good team player winning
AMUL : Kapferers Prism

Physique : Personality :
Taste, Quality Simple, Indian

Relationship :
Sociable
AMUL Culture :
Co-operative, Sharing

Reflection : Self-Image :
Value Oriented Proud Indian, Fun loving
Why extend brands ?
increasing competition between less & larger players with global
aspirations and ability to communicate globally
towards saturation of markets
similarity of brands offers attributes
decreasing brand loyalty
react to declining markets
nourish the brand perceived vitality
 Extending the Brand
Take the brand into products which have a brighter future
Dettol Soap
Mcdonalds: Salads & Yoghurt
Crest: Beyond cavities!
Extension must be
Relevant
Sustainable
Brand Extensions
A Brand Extension occurs when a firm uses an established brand
name to introduce a new product

When a new brand is combined with an existing brand , the brand

extension can also be a sub-brand.
Line extension
The parent brand is used to brand a new product that targets a new
market segment with in a product category currently served by the
parent brand.
A line extension often adds a different flavor or ingredient variety, a
different form or size, or a different application for the brand.
Cokes Line Extension
 Head
&
Shoulders

Extension
Category extension
The parent brand is used to enter a different product category from
that currently served by the parent brand.
ITCs Category Extension
 Caterpillar moved into shoes and
clothing

reliable, resistant, masculine

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How do consumers evaluate?
Fit between Parent & Extension
Fit in terms of Core Differentiation
FIT: Coke & Diet Coke (Taste)
MISFIT: Pepsi & Crystal Pepsi (Colour)
Extension must remain true to the core values of the
parent brand
Pierre Cardin brand dilution

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What is the brand stretching ?
It is the transfer of brand values on the new market

It shows that the brand is not related directly to one sector but has
values that can transcend different products categories
 Swatch move into jewel

Modern, Quality/price, Variety, Innovative design

The success of pen, lighter, and
razors Bic

Accessible, practical, deposable

The failure of Bic perfume

The Bic values are not relevant to perfume