BRAND MANAGEMENT

VDS
 “At the heart of a successful brand is
a great product or service,
backed by careful planning,
a great deal of long-term commitment,
and
creatively designed and executed
marketing”

“A strong brand commands intense

consumer loyalty”
• Personal / Health
Care
ReCall • Food Products
- Edible Oil?
- Tooth Paste?
- Milk?
- Soap?
• Bank - Ready 2 Cook?
- Shampoo?
- Detergent? - Pvt? - Chocolate?
- Men / Women? - PSU? - Ice Cream?
- Mosquito - Soft Drink?
Replant?
- Chips?
Telecom? – Jewelry? – Online Shopping?
Automobile – 2 W / 4 W ?
Pain Killer ???
American Marketing Association : Defines :
“ A Name, Term, Sign, Symbol,
Design, Jingle or a Combination
of them,
intended to identify the goods or
services of one seller or group of
sellers and to differentiate them
from those of competitors ”
Go to Adds
folder if it
dosent work
 Where does it come from???
• The word “brand” derives from the Old Norse
“brandr” meaning “to burn” – recalling the
practice of farmers burning their mark or symbol
on their animals to identify their livestock from
those of others.
• Bricks ???
• Chyawanprash – The oldest generic brand in
continuous use in India since the Vedic period
(1100 BCE to 500 BCE). 1st developed at
Dhoshi Hills by Rishi Chyavan.
CONCEPTS
LET’s Understand
 Brand Awareness
• Brand awareness is the first critical condition for
achieving brand success. In other ways it is a
customer’s ability to recall and recognize the
brand, the logo and the advertisement at the
time of purchase.
• In the absence of awareness, the brand runs
the risk of not getting an opportunity to take part
in the consumer decision process.
 The awareness of Brand is
reflected in 2 measures:

• Brand Recognition

• Brand Recall - Brand Aided Recall

- Brand Unaided Recall
 Brand Recognition
1. “I’ve seen U before somewhere”
2. “I am not sure whether we have met earlier”
3. “I’ve not seen U before”
Or
1. Confirmation of prior exposure
2. Neither confirmation nor disconfirmation of
prior exposure
3. Positive disconfirmation of prior exposure
Or
Yes Doubtful No
• Upon seeing brand elements like brand
name, packaging, brand symbol, etc., how
many customers are able to positively
confirm the prior exposure.
• How confident the respondent is in terms
of affirming the recognition.

N_K_ S_MS_NG
N_K_A B_T_
 Brand Recall

• It relates to the ability of the customer or

prospect to retrieve the brand from memory.
• In case of B. Recognition, the respondent is
exposed to a (brand element) stimulus either
disguised or undisguised
• Aided Recall

- Recall the brands of Detergents which have blue

color?
- Which are the brand names that come to your
mind when you think of liquid detergents?
- Detergent we give to maids for washing?
- Mention brand of detergent which are effective
for stain removal?
- Detergents for woolens ?
- Detergents for Super White Clothes?
• Unaided Recall – Ex. Mobile Phone

Brand names in Cell / Mobile phone Market ??

- Top – of – the – mind – awareness

- Toothpaste ? - In cold (Nose) ?

- Vanaspati Ghee ? - Namkeen ?
- Butter ? - Burger ?
- Bandage ? - Pizza ?
- Liquid Antiseptic - Adhesive ?
 Characteristics Of Brand
• Tangible characteristics: Price, physical
product, packaging, etc.
• Intangible characteristics: Customer’s
experience with the brand, brand position,
and brand image.
 Objectives of Brand
• To establish an identity for the product or a
group of products.
• To protect the product or service legally for its
unique features.
• To acquire place for the product in consumers’
minds for high and consistent quality.
• To persuade the consumer to buy the product by
promising to serve their needs in a unique way.
• To create and send the message of strong
reliable business among consumers.
 Brand Essence
• It is a single most compelling thing about a
brand that differentiates it from the
competing brands. The brand essence
serves as a metric to evaluate the seller's
marketing strategies. The most important
brand essences arise from consumers'
needs. Brand essence can be described in
just a few words.
For example,
Volvo: Safe travel.
Disney: Fun family entertainment.
Elements of Brand Essence
• Authenticity: If the brand makes a promise and fails to
keep, then it is rejected. The consumers expect the
sellers to be genuine and truthful.
• Consistency: The essence of a brand is lost if it is not
consistent in providing what it promised to the
consumer. Also, a brand should use its logo consistently
over time.
• Durability: The brand essence remains same over time.
Even if packaging and logos change, the essence does
not change.
• Experience: It is the consumers experience with the
brand.
• Uniqueness: It is how different a brand is from its
competitors.
• Relevance: It is the relevance of a brand to the consumer.
• Single mindedness: It is sticking to only one thing about
the brand which keeps the brand focused.
 Elements of a Brand
There are eight essential elements of a brand as given below:
• Brand Name: This is what the people get to see everywhere. It must be as simple and
memorable as possible, meaningful, easy to pronounce, and unique.
• Logo: This can be anything from a piece of text to the abstract designs. It may be
entirely unrelated to the corporate activities. It must be relevant to the product or
service, iconic, and attractive.
• Tone: This is how the seller communicates with the consumer. It can be
professional, friendly, or formal. It builds consumer’s perception about the brand.
• Jingle: It must be pleasant to hear and hum, relevant to the product, easy to
remember, and easy to understand over a large age group to connect consumer with
the brand.
• Slogan: It summarizes overall value proposition. It should be short, easy to
remember, and catchy. For example, KFC’s slogan is “Finger Lickin’ Good” and
Britannia’s is “Eat Healthy, Think Better”.
• Packaging: It needs to be catchy and advertising, drawing people to see the product
inside. Also, it needs to be compact, yet attractive.
• Universal Resource Locator (URL): It forms the domain name on the internet. A seller
can register all prospective variations of brand name URLs or can buy the existing
URL of a business.
• Characters/Mascots: It is a special symbol, either still, animated, or real life entity
such as an animal or a human character. For example, Vodafone’s Zoozoo characters
are played in its various advertisements by humans wearing special white body
suits.
Brand Terminology
 BRAND DIVERSITY
The humans have frequent needs as well as
occasional needs in the life. They are
varied in number of ways such as day-to-
day living needs, social needs, health and
medication needs, contemporary lifestyle
needs, to name a few. According to this
need-based market segmentation, the
brands are diversified in different sectors
such as personal care, home care,
commodities, entertainment, healthcare,
pharmaceutical, luxuries, and services.
 Fast Moving Consumer Goods (FMCG) Brands
The FMCG items such as grocery, toiletries, easy-to-cook foods, are essential for
our daily lives. They are called fast moving because they are the quickest to get sold
from the supermarket shelves. They are also called Consumer Packaged Goods
(CPG) brands. They are inexpensive and tangible products which can be produced
in advance and can be stored to be consumed later.

The brand managers need to handle these brands tactfully to generate more
revenue as there is fierce competition in the FMCG market. If a product does not
meet the consumer’s expectations, there is always other brand ready to take the
advantage.
Examples of FMCG: Unilever’s Dove Bodycare, Colgate Palmolive’s oral care,
Godrej, Dabur, Burges Olive Oil, etc.
 Commodities
They are the products or services which consumers buy depending upon
their price. There is no quantitative differentiation for commodities across
the market. Milk, sugar, oil, grains and cereals, metals, wool and rubber,
and natural gas, are all commodities.

Since it is not easy to pursue the consumers to pay more price for the
parallel product he can get at a lesser price, the sellers need to put in a lot
of effort on color, logo, brand character, and packaging to differentiate the
product so it makes a significant impact on the consumers’ mind. Also, the
seller needs to keep on adding value to the product.
Examples of commodities: TATA Salt, General Mill’s Pillsbury whole wheat
flour, etc.
 Luxury Brands
They are not essential but highly desired out of one’s own perception and self-worth. The
desirability is based on the consumer’s demand of high quality, fine craftsmanship, exclusivity,
precision, and beauty. Also, peer recognition, appreciation, and approval of high status are the
underlying needs which promote luxury brands. High-end automobiles, jewelry, cosmetics,
accessories, properties, and perfumes come under luxury brands.
These brands are divided into three categories:
• Prestige Brands: Mercedes-Benz, Rolex, Swarovski, etc. represent high
craftsmanship and lavishness. They are regarded as the mark of high social status.
• Premium Brands: They are mass luxury brands. For example, Calvin Klein and
Tommy Hilfiger.
• Fashion Brands: They bring fashion products such as apparels and accessories
under “hot trends” and target mass consumers. They bring products according to
the seasons. For example Madame, Allen Solly, etc

Most luxury companies are small to medium sized enterprises. Presence of luxury brands must be
maintained all over the world to reinforce the brand image in the consumer’s mind. They are
available in flagship stores.
 Business to Business (B2B) Brands
Under these brands, a business makes a commercial transaction with another business. Such
transactions occur when one business provides resources to another business for
manufacturing some product, and when one business supplies or rents out the products to
another business.
B2B companies must pursue global branding as they have less number of customers than
B2C companies and more number of transactions with other businesses.

For example, restaurants buy cooking energy, raw materials, crockery, furniture, lights, etc.
from different businesses. Retailers buy a product from original manufacturer for reselling it.
McDonalds, Pizza Hut, IBM, GE, Microsoft, and Oracle are B2B brands to name a few.
 Pharmaceutical Brands
These brands cover the products which are commonly known as drugs or medicines
used to diagnose, treat, and prevent a disease. There are more than 70,000
registered brands of drugs.
Pharmaceutical brands are different than consumer brands in various prominent
ways. Unlike consumer products, where requirement can be generated through
creative advertising and other promotional means, a pharmaceutical company
cannot create a need that is not there.
Any new pharmaceutical product cannot create demand without underlying medical
need. In addition, the product features of prescription drugs cannot be changed to
meet consumer needs or preferences without clinical development outcomes and
receiving approval from the regulatory authorities.

Examples of pharmaceutical brands: Simila Expert Care nutrition for infants from
Abbott Laboratories, USA and Dr Reddy’s Nise™.
 Service Brands
The service sector has spurred the economic growth of many countries. Services are
produced and consumed in real time. The output of a service brand is intangible,
such as experience of the consumer.
In service branding, the speed of processing the consumer’s request, punctuality in
delivery, quality, and degree of attending special needs, and responsiveness are the
factors the service provider caters for. Because of its intangible nature and
dependency on dynamic nature of humans who provide it, branding of service is
difficult.
The domestic and industrial appliances, automobiles, etc. are sold with the promise of
quality servicing. The quality and cost claimed by the services belonging to the same
industry can vary to a great extent. Service brands are categorized into the following
types:
•Classic Service Brands: They include banks, beauty
salons, consultation services, car rentals, and airline
services.
•Pure Service Brands: They include association
memberships.
•Professional Service Brands: They include advisors,
consultants, travel agents, estate agents, etc.
•Retail Service Brands: They include restaurants,
fashion stores, supermarkets, etc.
Examples of service brands: Ford, Airtel, Axis Bank, Air India, Café Coffee Day by Coffee Day Global
Ltd., Lifestyle fashion retailing by Landmark, ICICI Prudential Life Insurance, etc.
 E-Brands
These brands portray their entire image, such as the company’s value, competency,
vision, motives, missions, products/services etc. through web to the online
consumer. E-Brands work to create a direct relationship between the brand owner
and the customer via Internet. Due to their wide reach, it is easy for the e-brands to
survive among competitors and gain reputation among consumers.

The consumers are loyal to the sellers whose online commercial transaction
schemes are familiar, tested, and established. When the e-Brands provide features
such as facility to compare various products, listing products within a specified cost
or feature segment, easy and reliable payment modes, then the e-Brands can
make place in their consumers’ minds.

Examples of e-Brand: Flipkart, Amazon, etc.

 Country Brands
• Countries, like companies, apply branding to help themselves market for investment,
tourism, and exports. The ‘Country of Origin’ is commonly referenced by the term
‘Made in…’ which depicts an association with the product’s place of origin, which
works as effectively as product quality.
• Consumers are aware of the origin of the product and ethics used behind creating
that product. Some associations of countries and products are France=fashion,
wine, and cheese, Italy=design, India=spices, Denmark= chocolate,
Germany=automotive, Japan=electronics, etc. CHINA ???

Today, the brands apart from being associated with their countries also need to show their
strong connection with the country such as having a manufacturing setup in the country,
influx of designs emerging from the talent present in the country, or having a part of
production process set up in that country. For the simple reason, the consumers are more
likely to buy the product or service if they are authentic. The brand managers need to
emphasize on such points while branding.
Brand Positioning
 3Cs
What does it comes in ur mind when u think
of a BRAND ???
Value ???

Target Customer (Relevance)

Target Competition (Uniqueness)
Company or Brand
• Points-of-difference (POD) - The aspects of the product
offering that are relatively distinct to the offerings of like
competitors.

• Points-of-parity (POP) - The aspects of the product offering

that are largely similar to the offerings of like competitors.

• Unique Selling Proposition (USP) - The concept of a

unique selling proposition (USP) has become quite popular
in terminology in recent years. Essentially what this refers to
is points-of-difference and you can use the terms
interchangeably if required. A point-of-difference is basically
what is different about the firm’s product, as compared to
most competitive offers. The same meaning is applied to the
term ‘unique selling proposition’; that is, what is unique (that
is, different) about the firms offer.
 The Position Map

P
r
i
c
e

Quality
List of Variants / Automobiles
 Who am I?
• Positioning by Corporate Identity

• Positioning by Brand Endorsement

 What am I ?
• Category Positioning
Eg. Health

• Benefit Positioning
Eg. CAR – Economy, Speed, Luxury,
Eteem, Safety, Adventure
• Usage and Use Time Positioning

• Price - Quality Positioning

 BRAND EQUITY
Brand equity is the heart of brand management. The brand managers are
engaged in building strong brand equity as it directly affects the consumer’s
buying decisions, defines market share of the product, and determines the
brand position in the market. Strong brand equity can not only make the
brand strong but also help the brand establish, survive, and perform well in
the long run.

This term came up in the marketing literature in 1980. This multidimensional

concept has different meanings from the context of Accounts, Marketing,
and Consumer.
 Definitions
• Accounting Context: It is a total value of a brand as a separable
asset, when evaluated for selling. It is also called Brand Value. It is
quantifiable.
• Marketing Context: It is the description of consumer’s associations
and beliefs about the brand. It is non-quantifiable. Brand equity is
tailored according to the needs and demands of the consumer.
• Consumer-based Context: It is a measure of consumers’
attachment to a brand. It is also called brand strength or loyalty. It
is quantifiable.
As per Amber and Styles (1996), Brand Equity is a store of profits which
can be realized in future.
 Cadbury is now not Cadbury !!!
• The story
In 2009, US food company Kraft Foods launched a hostile bid for
Cadbury, the UK-listed chocolate maker. As became clear almost exactly
two years later in August 2011, Cadbury was the final acquisition
necessary to allow Kraft to be restructured and indeed split into two
companies by the end of 2012: a grocery business worth approximately
$16bn; and a $32bn global snacks business. Kraft needed Cadbury to
provide scale for the snacks business, especially in emerging markets
such as India. The challenge for Kraft was how to buy Cadbury when it
was not for sale.
• The history
Kraft itself was the product of acquisitions that started in 1916 with the
purchase of a Canadian cheese company. By the time of the offer for
Cadbury, it was the world’s second-largest food conglomerate, with
seven brands that each generated annual revenues of more than $1bn.
• Cadbury, founded by John Cadbury in 1824 in Birmingham, England,
had also grown through mergers and demergers. It too had recently
embarked on a strategy that was just beginning to show results.
Ownership of the company was 49 per cent from the US, despite its UK
listing and headquarters. Only 5 per cent of its shares were owned by
short-term traders at the time of the Kraft bid.
• The challenge
Not only was Cadbury not for sale, but it actively resisted the Kraft
takeover.
• Sir Roger Carr, the chairman of Cadbury, was experienced in takeover
defences and immediately put together a strong defensive advisory
team. Its first act was to brand the 745 pence-per-share offer
“unattractive”, saying that it “fundamentally undervalued the company”.
The team made clear that even if the company had to succumb to an
unwanted takeover, almost any other confectionery company (Nestlé,
Ferrero and Hershey were all mentioned) would be preferred as the
buyer. In addition, Lord Mandelson, then the UK’s business secretary,
publicly declared that the government would oppose any buyer who
failed to “respect” the historic confectioner.
• The response
Cadbury’s own defence documents stated that shareholders should
reject Kraft’s offer because the chocolate company would be “absorbed
into Kraft’s low growth conglomerate business model – an unappealing
prospect that sharply contrasts with the Cadbury strategy of a pure play
confectionery company”.
• Little did Cadbury’s management know that Kraft’s plan was to split in
two to eliminate its conglomerate nature and become two more focused
businesses, thereby creating more value for its shareholders.
• The result
The Cadbury team determined that a majority of shareholders would sell
at a price of roughly 830 pence a share. A deal was struck between the
two chairmen on January 18 2010 at 840 pence per share plus a special
10 pence per share dividend. This was approved by 72 per cent of
Cadbury shareholders two weeks later.
• The key lessons
In any takeover, especially a cross-border deal in which the acquired
company is as well known as Cadbury was in the UK, the transaction
will be front-page news. In this case, it was the lead business story for
at least four months. Fortunately, this deal had no monopoly or
competition issues, otherwise those regulators could also have been
involved.
• But aside from any regulators, most other commentators will largely be
distractions. It is important for the acquiring company’s management
and advisers to stay focused on the deal itself and the real decision-
makers – the shareholders of the target company.
• As this deal demonstrates, these shareholders may not (and often will
not) be the long-term traditional owners of the target company stock, but
rather very rational hedge funds and other arbitrageurs (in Cadbury’s
case, owning 31 per cent of the shares at the end), who are swayed
only by the offer price and how quickly the deal can be completed.
• Other stakeholders may have legitimate concerns that need to be
addressed but this can usually be done after the deal is completed, as
Kraft did.
Cadbury India set to get new identity
Shubham Mukherjee & Namrata Singh | TNN | Apr 17, 2014, 05.42 AM IST

MUMBAI: Cadbury India, a name which has had a sweet connect with consumers for over
six decades now, will soon be rechristened Mondelez India, after its US-based parent
company Mondelez International (written as Mondelcz International and pronounced as
mon-dah-leez), which had acquired Cadbury Plc globally in 2010. The move is expected to
coincide with the company moving out of its iconic headquarters 'Cadbury House' at the
busy junction in the uppity Peddar Road in Mumbai in June this year, Cadbury India
managing director Manu Anand told TOI in an interview.

Cadbury House, and the accompanying Bournville Apartments — where the company's top
officials reside — was sold to diamond merchant Dilip Lakhi for under Rs 400 crore late
last year. While the name Mondelez does not have a great recall among consumers in India,
Anand believes that wouldn't clash with the popularity of its household brands such as
Cadbury Dairy Milk, 5-Star, Gems and now Tang and Oreo. Mondelez is the new corporate
identity for the erstwhile Kraft Foods after a restructuring two years back. The Indian arm is
now following suit. The global acquisition also prompted a culture change at the largest
chocolate maker that has been in India since 1948.

The name change signals a makeover of sorts for the Brit-turned-American confectioner,
which aims to become the largest snacking company in the country. "We are a multi
platform company and obviously we want to be the number one snacking company," Anand
said, spelling out his vision for the organization.
Name changes are not new to multinationals operating in India. In 2007, Unilever's Indian
subsidiary got rechristened as Hindustan Unilever. So strong was the Indian connection to
Unilever that it retained 'Hindustan' in its corporate name in India, which is perhaps the
only exception in the Unilever universe.
.
But, as they say, brands speak louder to consumers than the names of their makers. Several
FMCG companies, including Britannia, Parle, PepsiCo, Coca-Cola, Colgate, Dabur and
Emami, have strong association with consumers for the products they make, whether it's
biscuits, toothpastes, beverages, hair oils or skin creams.

Anand, who took over as MD of the roughly Rs 4,000-crore Cadbury India in October last
year, does not feel it necessary to conduct an awareness drive on the name change. But the
move does reflect a certain sense of urgency to mirror Mondelez International's global
portfolio in India. What bolsters this view is the fact that India is a fast-growing market not
just for chocolates but for biscuits as well. "Today, within Mondelez, we are the fourth
largest country in Oreo in volumes today, after the US, China and Brazil," said Anand.

Anand is not in a great hurry either. The soon-to-be-named Mondelez India wants to
consolidate on the existing platforms by growing through innovations. Recent ones include
5 Star Chomp, a new orange flavour in Oreo and Tang Mango. The former PepsiCo India
head wants to gradually add to the portfolio, with the first priority being on maximizing
the growth of each category before spreading the net wide. "We have got good momentum
in our categories and there is so much more innovation that can drive consumer trials," said
Anand.
He also feels that the economy has bottomed out and sales have picked up since the
beginning of the year. Under Anand, Cadbury strategy is focused on "innovation,
infrastructure and the brand".

India is a key country in Mondelez International's global scheme and the focus, said Anand,
will be on the power brands. Besides Cadbury, Oreo and Tang, the $36-billion Mondelcz
International's portfolio includes billion-dollar brands Milka chocolate, Jacobs coffee,
Toblerone, Nabisco and Trident gums. As the company prepares to vacate Cadbury House
and move into its new corporate office in Lower Parel in June, one wonders what would be
the fate of the iconic name of the building which has popularized the junction where it
exists?
 Concept
• Brand equity is the value of the brand in the marketplace
• A brand with high equity - brand has the ability to create some
sort of positive differential responses in the marketplace
• This can mean that:
1. A brand is easily recognizable when encountered in
advertising or seen on a yard sign
2. A brand is one of the first ones recalled when a relevant
prompt is used
3. Individuals would be willing to pay a premium price for a
brand’s offering
4. When someone asks for referral, the brand is the first one
that is recommended
 Brand equity defined:
• Brands, if managed well, add value to the product
• The value, as perceived by the customers is important
as it impacts the customer’s evaluation of the brand
• Definitions
• (Marketing Science Institute 1988, cited in Chay 1991)
‘Brand equity is the set of associations and
behaviors on the part of a brand’s customers,
channel members and the parent corporation that
permits the brand to earn greater volume or
greater margins than it could without the brand
name, and that gives the brand a strong,
sustainable and differential advantage over
competitors’
• (Biel 1992)
‘Brand equity can be thought of as the additional
cash flow achieved by associating a brand with
the underlying product or services’
• (Aaker 1991)
‘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 firm’s customers’
• (Keller 2004)
Defines brand equity from the customer’s perspective
as ‘the differential effect the brand knowledge has
on consumer response to the marketing of that
brand’
What Brand Provide

• Value to Customers
• Value to Marketers / Org
 Providing value to the Customer:
• Brand equity assets generally add or subtract value
for customers
• Help them interpret and store huge quantities of
information about the product and the brands
• Also affect customer’s confidence about the
purchase decision
• Both perceived qualities and brand associations can
enhance customer’s satisfaction with the use
experience
• For example:
Knowing a piece of work came from Rolex can
affect the experience of wearing it: the user can
actually feel different
 Providing value to the Org:
• Brand equity has the potential to add value to the firm
by generating marginal cash flow in at least half dozen
ways
• First
It can enhance programs to attract new customers or
recapture old ones
• Second
The perceived quality, the associations and a well-
known name can provide reasons to buy and can
affect use satisfaction
Enhanced brand loyalty is especially important in buying
time to respond when competitors innovate and obtain
product advantage
• Third
Brand equity will usually allow higher margins by permitting
both premium pricing and reduced reliance upon promotions
In many contexts, the element of brand equity serves to support
premium pricing
A brand with a disadvantage in brand equity- invests more in
promotions just to maintain its position in distribution channel
• Fourth
Brand equity can provide a platform for growth via brand-
extensions.
For example:
Park Avenue- (Shirts, Shaving cream, Jeans, Perfumes,
Soap & Razors). It would have been much more
expensive to extend into several products without Park
Avenue name
• Fifth
Brand equity can provide leverage in the distribution channel;
the trade has less uncertainty dealing with a proven brand
name
A strong brand name will have an edge in gaining both shelf
facing and cooperation in implementing marketing
programs
• Sixth
Brand equity assets provide a competitive advantage that
often presents a real barrier to competitors
For example:
Tide – detergent for tough family laundry jobs may
preempt an attribute that is important for a given
segment. Another brand would find it difficult to
compete with Tide for the ‘tough cleaning job’
segment
HOW BRAND EQUITY GENERATES VALUE:
 MAJOR BRAND ASSET CATEGORIES:

BRAND EQUITY

BRAND PERCEIVED BRAND BRAND

AWARENESS QUALITY ASSOCIATIONS LOYALTY
Brand Awareness:

• The Brand awareness is the 1st critical

condition for achieving brand success
It includes
• Brand recognition - it is the ability to
confirm to prior exposures (Yes, I have
seen it earlier)
• Brand recall – it is the ability to remember
the brand when the product category is
thought about
• Top of the mind recall
• The Brand Awareness Pyramid:

Dominant in the mind

(Colgate)

Top of the mind

(Pepsodent, Close up)

Brand Recall
(Babool, Sensodyne)

Brand Recognition
(Anchor, Meswak, Binaca)

Unaware of the brand

(Crest, Mentadent)
+
Brand Recognition:
• It is at the bottom level of the pyramid
• When a person is able to confirm the prior
exposure, the brand is said to have been
recognized
• It is particularly important under low involvement
buying situations, especially when decision is taken
stores or at the point of purchase
• Recognition means some sense of familiarity which
sometimes is sufficient in choice decision
• In brand recognition test, ability of the consumers to
identify the brand elements is tested
• That is, upon seeing the brand elements like- name,
packaging, symbol, etc India’s premier M-school
+
Brand Recall:

• A more rigorous test of brand

awareness is brand recall
• Recall related to the ability of the
customer or prospect to retrieve the
brand from memory
• Brand recall may be tested in two
forms:
• Aided recall
• Unaided recall
India’s premier M-school
+
Brand Recall: A Hypothetical Exercise:
Unaided Recall:
• What all brands names come to your mind
when you think of detergents?
---- Surf, Nirma, Ariel
Aided Recall:
• Mention the detergent brands which come in
blue color (product attribute)
---- Surf, Rin, Henko, Fena
• Mention the detergent brands which are the
soak and rinse type (usage form)
---- Surf, Ariel
India’s premier M-school
+
• Mention the detergent brands which are
bought in large quantities (quantity of
purchase)
---- Surf, Nirma, Fena, Wheel
• Mention the detergent brands which are to
be given to the servant/maid for washing
purpose(usage situation)
---- Nirma, Fena, Wheel
• Mention the detergent brands which are
effective in stain removal (motivation)
---- Surf, Ariel
• Mention the detergent brands which are
good for washing woolens (applications) India’s premier M-school

---- Ezee, Genteel

• The above examples reveal that Surf,
Nirma, and Ariel are the three strongly
entrenched brands (because of
unaided recall)
• Surf enjoys the greatest breadth (on
variety of situations it is recalled)
+ Top of the Mind Recall:
• A higher level of awareness is Top of the
mind recall
• It indicates the relative superiority a brand
enjoys over others
• Sometimes a brand is able to achieve such
a dominant position that it becomes the only
recalled brand in the product category
• For example:
• Toothpaste – Colgate
• Vanaspati – Dalda
• Adhesive bandage – Band Aid
• Liquid antiseptic – Dettol India’s premier M-school
• Such brands are called the ‘Dominant
Brands’ in that product category
• A dominant position prevents other
brands from getting into the
consumers mind and be considered
while making a purchase
+
Graveyard Model:

India’s premier M-school

• The relative power of recall versus
recognition is shown in the figure
which depicts the “Graveyard Model”
• Developed by Young & Rubicam
Europe under the guidance of Jim
William
• In this model, brands in a product
class are plotted on recognition versus
recall graph
• One finding consistent across dozens
of product classes – brand tends to
follow the “curved line”
• There are two exceptions, each of which reveals
the importance of recall
1)Healthy Niche brands
• Falls below the line because they are not known
to a substantial group of consumers
• Therefore they have relatively low recognition
• But they do have a high recall among their
respective loyal customers
• Thus their low recognition is not necessarily an
indication of their poor performance
• Healthy niche players sometimes have the
potential to expand recognition and thus the scope
of their customer base
2) Graveyard:
• An area in the upper left hand corner
populated by brands with high
recognition but low recall
• Being in the graveyard can be deadly:
Customers know about the brand, but
will not come to the mind when
considering a purchase
• One point of graveyard model is that high
recognition is not necessarily the mark of a strong
brand – it is associated weak ones as well
• The dynamics of the brands located in the upper-
middle or upper-right part of the figure can be
important predictors of the future brand health
• Moving toward the graveyard is associated with
sliding sales and market share
• Moving away from Graveyard indicates that
brand’s sales and market share may increase
• Thus Graveyard model provides evidence that
recall is as important as recognition
+
PERCEIVED QUALITY:
• According to Aaker (1991), the quality of the brand as
perceived by the customers also leads to brand equity
• If the perceived quality is high, it will lead to ‘price
premium, price elasticity, and brand usage’ and it will
be available across the product classes though the
importance may vary
• “Perceived quality can be defined as the
customer’s perception of the overall quality or
superiority of a product or service with respect to
its intended purpose, relative to alternatives.
Perceived quality is, first, a perception by
customers”
• Perceived quality cannot necessarily be objectively
determined, because it is a perception and also
because judgments about what is important to the India’s premier M-school

customers are involved

• Perceived quality is an intangible, overall feeling about a
brand
• Perceived quality refers to the customer’s perception about
the total quality of the brand
• While evaluating quality the customer takes into account the
brands performance on factors that are significant to him
and makes a relative analysis about the brand’s quality by
evaluating the competitor’s brand also
• Perceived quality affects the pricing decisions of the
organizations
• Superior quality products can be charged a price premium
• Perceived quality gives the customer a reason to buy the
product
• It also captures the channel member’s interest
• For example:
Starbucks can sell its coffee at a higher price
than solid market competitors because
consumers associate the brand with quality and
value
+
BRAND ASSSOCIATIONS:
• Brand association is anything which is deeply
seated in the customer’s mind about the
brand
• Brand should be associated with something
positive so that the customer relate your
brand to being positive
• Brand associations are the attributes of a
brand which comes into the consumers mind
when the brand is talked about
• Brand association can also be defined as the
degree to which a specific product/service is
recognized within its class or category India’s premier M-school
 • While choosing a brand name, it is
essential that the name chosen should
reinforce an important attribute or
benefit association that forms its
product positioning
For example
Big Bazaar –
associations like
‘value for money’,
‘variety of
products’, ‘fashion
trends for the
youth’, etc come to
mind
• Brand associations are formed on the
following basis:
• Customers contact with the organization and its
employees
• Advertisements
• Word of mouth publicity
• Price at which brand is sold
• Celebrity/big entity association
• Quality of the product
• Products and schemes offered by competitors
• Product class/category to which the brand
belongs
• POP (point of purchase), display, etc
+
• Brand associations are not benefits,
but are images and symbols
associated with a brand or a brand
benefit
• For example:
• Nike swoosh
• Nokia sound
• Lux – film stars
• Pepsi – blue color
• Britania – ting –ting-ta-ding
India’s premier M-school
• Associations are not “reasons –to – buy”
but provide acquaintance and
differentiation that’s not replicable
For example:
• Hyatt hotel – luxury and comfort
• BMW – sophistication, fun driving, superior
engineering
Most popular brand associations are with the
owners of the brand
• For example:
• Bill Gates – Microsoft
• Reliance – Dhirubhai Ambani
• Positive brand associations are
developed if the product which the
brand depicts is durable, marketable,
and desirable
• The customer must be persuaded that
the brand possess the features and
attributes satisfying their needs
• A positive brand association helps an
organization to gain goodwill, and
obstruct the competitors entry into the
market
+
BRAND LOYALTY:

• The importance of the brand loyalty as

a construct of brand equity has been
delineated by Aaker (1991), who
treated it as a behavioral dimension
• However, brand loyalty as an
attitudinal dimension has also been
identified and defined
As ‘the tendency to be loyal to a
focal brand , which is demonstrated
by the intention to buy the brand asIndia’s premier M-school

the primary choice’

• The advantages of the brand loyalist
are that
• they ‘represent barriers to the entry for
competitors
• are a basis for price premium
• time to respond to the competitors
innovations
• and a barricade against deleterious
price competition
• Loyalty is of sufficient importance than
other measures
• Three levels of loyalty have been
identified (Gremler and Brown 1996)
• Behavioral loyalty
(purchase repeatedly)
• Attitudinal loyalty
(customer feels some devotion to the
brand and prefers the brand)
• Cognitive loyalty
(brand name comes at top -of - mind
recall and consumer’s first choice
whenever purchase decision arise)
• Brand loyalty is a measure of the
attachments that a customer has to a
brand
• It reflects how likely a customer will be
to able switch to another brand,
especially when that brand makes
change – in price or feature
• It is one indicator of brand equity,
which demonstrably links to future
profit, since brand loyalty directly
translates into future sales
+
Loyalty pyramid:

Committed
Buyer

Likes the Brand-

Consider it a friend

Satisfied Buyer with Switching Costs

Satisfied/Habitual Buyer-No reason to change

Switchers/Price Sensitive Indifferent - No Brand Loyalty

India’s premier M-school

The bottom level
• The non-loyal buyer who is completely
indifferent to the brand
• Each brand is perceived to be
adequate and the brand name plays
little role in the purchase decision
• Whatever is on sale or convenient is
preferred
• These buyers might be termed as
switcher or price buyers
The second level:
• Includes buyers who are satisfied with
the product or at least not dissatisfied
• These buyers might be termed as
habitual buyers
• However, they can be difficult to reach
since there is no reason for them to be
on the outlook for alternatives
The third level:
• Consist of those who are also satisfied and in
addition, have switching cost-cost in time, money,
or performance risk associated with switching
• Perhaps they have invested in learning a system
associated with a brand. Eg:
Machinery,Tractors,Chemicals,etc
• Or perhaps there is a risk that another brand may
not function well in a particular use context
• To attract these buyers, competitors need to
overcome the switching cost by offering an
inducement to switch or by offering a benefit large
enough to compensate
• This group may be called switching - cost loyal
The fourth level:
• Those who truly like the brand
• Their preferences may be based upon an
association, a set of use experience or a
high perceived quality
• However, liking is often general feeling
that cannot be closely traced to anything
specific; it has a life of its own
• The group might be termed as friends of
the brand because there is an emotional
feeling attachment
The top level:
• Committed customers
• They have pride of discovering and/or
being users of a brand
• The brand is very important to them
either functionally or as an expression
of who they are
• Their confidence is such that they will
recommend the brand to others
• These five levels are stylized, they do
not always appear in the pure form
and more levels could be
conceptualized
• These five levels do, however signify
the various forms that loyalty can take
and how it impacts upon brand equity
 Brand Resonance Pyramid
(Philip Kotler)
The brand resonance model also views brand building as an ascending,
sequential series of steps, from bottom to top. The steps are as below:
• Ensuring identification of the brand with customers and an association of
the brand in customers’ minds with a specific product class or customer
need
• Establishing the totality of brand meaning in the minds of customers by
strategically linking a host of tangible and intangible brand associations
• Eliciting the proper customer responses in terms of brand-related
judgment and feelings
• Converting brand response to create an intense, active loyalty
relationship between customers and the brand.
According to this model, enacting the four steps involves establishing six
“brand building blocks” with customers. These brand building blocks can be
assembled in terms of a brand pyramid. The model emphasizes the duality of
brands—the rational route to brand building is the left-hand side of the
pyramid, whereas the emotional route is the right-hand side.
 Rational vs Emotional Buying Motives
RATIONAL EMOTIONAL
DURABILITY PRIDE of personal appearance
Economy in use Social achievement
Economy in purchase Ambition
Handiness Fear
Efficiency in operation Pleasure
Dependability in use Increased leisure time
Saving time Romance or Adventure
Comfort
Cleanliness
Example :-
MasterCard is an example of a brand with duality, as it emphasizes both the rational
advantage to the credit card, through its acceptance at establishments worldwide, and
the emotional advantage through its award-winning “priceless” advertising campaign,
which shows people buying items to reach a certain goal. The goal itself—a feeling, an
accomplishment, or other intangible—is “priceless” (“There are some things money
can’t buy, for everything else, there’s MasterCard.”).
BRAND RESONANCE
 The creation of significant brand equity involves reaching the top or pinnacle of the
brand pyramid, and will occur only if the right building blocks are put into place.

• Brand salience relates to how often and easily the brand is evoked under various
purchase or consumption situations.
• Brand performance relates to how the product or service meets customers’
functional needs.
• Brand imagery deals with the extrinsic properties of the product or service,
including the ways in which the brand attempts to meet customers’ psychological
or social needs.
• Brand judgments focus on customers’ own personal opinions and evaluations.
• Brand feelings are customers’ emotional responses and reactions with respect to
the brand.
• Brand resonance refers to the nature of the relationship that customers have with
the brand and the extent to which customers feel that they are “in sync” with the
brand.
Resonance is characterized in terms of the intensity or depth of the psychological
bond customers have with the brand, as well as the level of activity engendered by
this loyalty.
Examples of brands with high resonance include Harley-Davidson, Apple, and eBay.
 Exercise
Divide yourself into 7 Groups

1) FMCG
2) Online Store
FOR EXISTING
3) Food / packaged Products BRANDS

Design Your
4) Gadgets Brand
Resonance
5) Consumer Durables Pyramid

6) Real Estate Lets see what u

can Do??
7) BSFI
 ACTIVITY

Choosing Brand Elements to

Build Brand Equity

Criteria Elements
 Criteria
1. Memorabiltiy
2. Meaningfulness
3. Likability
4. Transferability
5. Adaptability
6. Protectability
 Criteria
Memorable
• Easily recognized
• Easily recalled
Meaningful
• Descriptive
• Persuasive
 Criteria
Likable
• Fun & Interesting
• Rich visual & verbal imagery
• Aesthetically pleasing
Criteria
Transferable
• Within & across product boundaries
• Across geographic boundaries & cultures
 Criteria
Adaptable
• Flexible
• Updateable
 Criteria
Protectable
• Legally – registered trade mark
• Competitively
 Brand Elements
• Brand Names & URLs
• Logos & Symbols
• Characters
• Slogans & Jingles
• Packaging & Signage
 Brand Linguistics
• Phonics
– alliteration (Coca-Cola)
• Orthographic
– spelling (Kool); abbreviation (7 Up, IBM)
• Morphologic
– compound (Janitor-in-a-drum)
• Semantic
– Metaphor (Arrid)
 Brand Names & URLs
Useful for Brand Awareness & Brand Associations
– Compaq, Yahoo, Tide, Dove

• Descriptive – Singapore Airlines, Hit, Gati, Ivory

• Suggestive – suggests a benefit or function –
Colorstay lipsticks, Head & Shoulders, Mop &
Glo, Aquaguard, Eveready, Sugar Free, Low Cal
• Classical – based on Greek, Latin or Sanskrit
words
• Arbitrary – no relationship with the
company/Product – Apple Computers, Camel
 Brand Names
• Compound • Fanciful (imaginative
– RedHat words)
– PriceWaterhouse – Vodafone
Coopers – Wochardt
• Arbitary (real words
• Classical without direct connection)

– Vedanta – Apple
– Balaji Telefilms – Orange
– Mango
 URLs

 Keep it as simple as possible

 Avoid Clichés
 Avoid the .com
 Brand v/s description – helps only short term
 Unique personality
 Unexpected combination (motley fool)
 Reinvent a real word
 Make new words
 Logos & Symbols
1. Corporate names & Trademarks – Coca-Cola,
Nestle, Tata, Maruti, Johnson & Johnson
2. Abstract or non-word mark logos are also
known as symbols- Mercedes star, Rolex
crown, Nike swoosh, Olympic rings
3. Many logos fall between these 2 extremes –
Ralph Lauren’s polo player, Playboy’s Bunny,
McDonald’s Golden Arch, Apple Logo
 Benefits
• Visual nature of logos & symbols – easy
recognition & recall
• Versatile- can be updated transferred
across cultures
• Can be appropriate for a range of product
categories-Surf, Dettol, Lux
 Characters
A symbol that takes on human or real life
characteristics
• McDonald’s Ronald
• Disney Characters –
• Asian Paints – Gattu
• Pillsbury Doughboy
• Kellogg's Bear
• Frosted Flakes -Tony the Tiger
• Duracell Bunnies
• Hush Puppies
 Benefits
• Enhance brand personality & build
relationship with customers – Disney for
kids
• Valuable Licensing properties – Barbie
dolls, Spiderman, Superman etc., All
Disney Characters
• Can be updated to suit the changing times
 Slogans
• Short phrases that contain descriptive or persuasive
information
• Adds verbal reinforcement
• Design of slogans
– TO build awareness and image
– Product sense and beyond (zindagi ke saath bhi .. Ke baad bhi)
• Updation of slogans
– Find out contribution of existing slogan
– Find out what more you wish to enhance
– Retain good qualities of earlier slogan and build up on that
 Slogans
• Just Do it
• When it absolutely positively has to be
there overnite
• No more tears
• Diamonds are forever
• We try harder
• On time every time
 Benefits
• Often rich and colorful – attention getting
and help in creating brand awareness
• Help Brands in breaking through the
“clutter” in the market
• Communicate a key product benefit –
reliability, speed – Sprint telecom
 Jingles
• Musical – easy recall - Airtel
• Reinforce brand positioning and enhance
POD’s or POP’s
• Useful when designing Ad campaigns
– “Desert rose” – jaguar
– The axe song
– Helps in repetitive reminding
 Packaging
• Identify the brand – strong brand
association with packaging style of
company
• Convey descriptive & persuasive
information
• Facilitate product transportation &
protection & storage
• Assist at-home storage (bottles and refill)
 Packaging
• Aid Product consumption (screw-on cap in
soft drink)
• “Color vocabulary” (product and category)
• Innovations can boost sales – Soft drink
cans, 2 litre bottles, chocolates in smaller
packs, shampoos and hair oils in sachets
– enhance product usage & consumption
 Packaging
• Carlsberg beer – green bottle
• Cadbury- purple
• Kit-Kat – red
• Kodak films – yellow
• Pepsi - blue
 Packaging Essentials
• Know your consumer
• Take the big-picture approach
• Aesthetics + Function
• Know your distribution channels
• Educate Management
 Brand Equity Models

• Aaker’s Brand Equity Model – 5 Asset

Model
• Keller’s Brand Equity Model – Brand
Resonance
• BrandZ
• Brand Asset Valuation
 1 - Aaker’s Brand Equity
Model
David Aaker defines brand equity as a set of assets and liabilities linked to a brand that
add value to or subtract value from the product or service under that brand. He
developed a brand equity model (also called Five Assets Model) in which he identifies
five brand equity components:
Brand Loyalty
The following factors depict the extent to which customers are loyal to a brand:
• Reduced Costs: Maintaining loyal customers is cheaper than charming new
ones.
• Trade Leverage: The loyal customers generate steady source of revenue.
• Bringing New Customers: Existing customers boost brand awareness and
can bring new customers.
• Competitive Threats Response Time: Loyal customers take time to switch
to a new product or service offered by other brand. Hence this buys time for
the company to respond to competitive threats.
Brand Awareness
The following measures depict the extent to which a brand is widely known among
consumers:
• Association Anchors: Depending upon the brand strength, associations
can be attached to the brand which influence brand awareness.
• Familiarity: The consumers familiar with a brand will speak more about it
and thus, influence brand awareness.
• Substantiality: Consumers’ review on brand brings substantial and strong
commitment towards the brand.
• Consumer’s Consideration: At the time of purchasing, consumer looks for a
particular brand.
Perceived Quality
It is the extent to which a brand is believed to provide quality products. It can be measured on the
following criteria:
• Quality: The quality itself is the reason to buy.
• Brand Position: This is a level of differentiation as compared to competing brands. Higher
the position, higher is the perceived quality.
• Price: When quality of the product is too complex to assess and consumer’s status comes
into picture, the consumer takes price as a quality indicator.
• Wide Availability: Consumers take widely available product as a reliable one.
• Number of Brand Extensions: The consumers tend to take a brand with more extensions as a
measure of product guarantee.
Brand Associations
• It is the degree to which a specific product/service is recognized within its product or service
category. For example, a person asking for Xerox wants to actually make true copies of a paper
document.
• Information Retrieval: It is the extent to which the brand name is able to retrieve or process
the associations from consumer’s memory.
• Drive Purchasing: This is the extent to which brand associations drive consumers to
purchase.
• Attitude: This is the extent to which brand associations create positive attitude in the
consumer’s mind.
• Number of Brand Extensions: More the extensions, more the opportunity to add brand
associations.
Proprietary Assets
They are patents, copyrights, trademarks, trade secrets, and other intellectual property rights. More the
number of proprietary assets a brand has, greater is the brand’s competency in the market.
 2 - Keller’s Brand Equity
Model
• This model is developed by Kelvin Lane
Keller, a marketing professor at Dartmouth
College. It is based on the idea that the
power of a brand lies in what the
consumer has heard, learnt, felt, and seen
as a brand over time. Hence this model is
also termed as Customer Based Brand
Equity (CBBE) model.
• It is also known as Brand Resonance
Model
According to CBBE model, it takes answers to four basic
questions for building brand equity starting from the base of
the pyramid shown above:
Who are you? (Brand Identity)
What are you? (Brand Meaning)
What do I feel or think about you? (Brand Responses)
What type and extent of association I would like to
have with you? (Brand Relationships)
Brand Identity
• It is not only how often and easily the consumer can recall or
recognize the brand but also where and when he thinks of the
brand. The key is to create brand salience to acquiring correct brand
identity.

Brand Meaning
• According to Keller, to make the brand meaningful it is essential to
create a brand image and characteristics. Brand meaning arises out
of brand associations, which can be imagery-related or function-
related.
• The imagery-related associations depict how well the brand meets
social and psychological needs of the consumer. The function-
related association such as product or service performance is what
the consumer looks for primarily.
• Regardless of the type of product or service, developing and
delivering the product that completely satisfies the customer’s needs
and demands is the prime objective of making the brand meaningful.
A brand with the right identity and meaning creates a sense of
relevance in the consumer’s mind.
Brand Responses
The companies must cater for the consumer’s response. Keller segregates
these responses into consumer’s judgments and consumer’s feelings.
• Consumer Judgments: They are consumer’s personal opinions
regarding the brand and how he has put imagery-related and
performance-related associations together. There are four types of
judgments crucial for creating a strong brand:
Quality
Credibility
Consideration
Superiority
• Consumer Feelings: They are consumer’s emotional reactions to the
brand. They can be mild, intense, positive, negative, driven from heart
or head. There are six important feelings crucial in brand building:
Warmth
Fun
Excitement
Security
Social approval
Self-respect
Brand Relationships
It is the level of personal identification the consumer has with the brand. It is
also called brand resonance, when a consumer has a deep
psychological bonding with the brand. Brand resonance is the most
difficult and highly desirable level to achieve. Keller categorizes this
into four types:
• Behavioral Loyalty: Consumers may purchase a brand repeatedly or in
high volume.

• Attitudinal Attachment: Some consumers may buy a brand because it

is their favorite possession or out of some pleasure.

• Sense of Community: Being identified with a brand community

develops kinship in the consumer’s mind towards representatives,
employees, or other people associated with the brand.

• Active Engagement: Consumers invests time, money, energy, or other

resources and participates actively in brand chat rooms, blogs, etc.,
beyond mere consumption of brand. Thus, the consumers strengthen
the brand.
 BrandZ
• BrandZ is the world’s largest brand equity database created and
updated by Millward Brown, a multinational company working
in advertising, marketing communications, media, and brand
equity research.
• This database was created in 1998 and is being updated
continuously since then. It lists top 100 global brands since 2006. To
compile this database, the raw data is collected from about two
million consumers and professionals across more than 30 countries.
It lists around 23000 brands.
• BrandZ is the only brand valuation tool that helps brand owners to
find out how much brand alone can contribute to corporate value.
 Brand Asset Valuation
Brand asset valuation evaluates a brand’s value, strength, and
performance as compared to other brands in the market. An agency
named Young and Rubicam developed a metric called Brand Asset
Valuator (BAV), which measures brand vitality, which is the brand’s
potential in terms of its future growth and brand power.
The brand is analyzed in the following terms:
• Differentiation: How different and better is the brand from its
competitors?

• Relevance: How closely the target audience can relate with the
brand offer?

• Esteem: Has the brand built its esteem by keeping all promises
it made to the target audience?

• Knowledge: How many of the target audience know the brand?

 BAV Key Components
Differentiation
Degree to which a brand is seen different
Brand
Strength Energy
Brand’s Sense of Momentum

Relevance
Breadth of brand’s appeal

Esteem
How well the brand is respected
Brand
Stature
Knowledge
How familiar and intimate consumers are
 Brand Architecture
When the company portfolio is growing, the brands tend to
evolve. It is critically important to define the structure of
the brands within a portfolio to keep the brand health
strong.
The brand managers need to take various decisions such as
considering the right time to extend the existing brand,
selecting appropriate brand name, whether or not to have
different websites for multiple brands and so on. Since each
of such decisions has direct implications on the future, a
plan for brands is developed to provide clarity to the
consumers.
Brand architecture comes in play while presenting the
brand efficiently. Let us learn more about brand
architecture.
 What is Brand Architecture?

It is the structure of the brand in an organizational

entity that defines how various brands and sub-
brands in a company’s portfolio are related to each
other or are different from one another.

Brand architecture provides a hierarchy that depicts

the roles and relationships within the products and
services that make a company’s portfolio and makes
sure that the external stakeholders understand the
value of what the brands offer.
 Types of Brand Architectures
They can be varied from pure to hybrid. However, generally brand architecture is
distinguished into two categories: House of brands and Branded house.
House of Brands Branded House

Product Brand / Range Brand Source brand

Line Brand / Endorsing Brand
Umbrella brand
Multiple brands or activities are brought
together under a single name. There is
complete freedom for the management
of divisions, activities and the brands.
For example,
Mitsubishi Motors division and
Mitsubishi Electricals division are
completely unrelated except the fact
that they come under Mitsubishi
business. Both divisions manage
their own advertising, and brand
values, and obtain separate profits.
Master brand
It is a family of brands with high degree
of unity. Here, the master brand
structures the child brands in such a
manner that they are capable of
expressing the value of a parent brand.
Master brand is the single brand acting
as a driving force.
For example, Google.
Google books, Google maps, Google
Translate, Google Mail, etc., all come
under the master brand Google and
only differentiate in their descriptions.
 Brand Extension
Brand extension is required for a company’s growth,
profitability, and brand’s added reputation. It is an inevitable
strategic move at some point of time in brand management.

While extending a brand, all assumptions related to that

brand held for a long time are revised and the brand’s identity
is redefined. The brand managers need to identify growth
opportunities and increase parent brand’s value.

It is nothing but launching a product in a different category

under an already established brand name. It is extending the
existing brand promise with diverse products or services.

The following diagram shows the matrix of brand growth.

When a company introduces a new product, it has the following
choices:

New Brand, New Product (New Brand)

New Brand, Existing Product (Multi-Brand)
Existing Brand, New Product (Brand Extension)
Existing Brand, Existing Product (Line Extension)

The last two in the above list are the types of brand extensions.
Line Extension
A variation of existing product launched under the existing
brand. It often adds different flavor, package size or shape.
Here, established brand is the parent brand.
For example, Coke is basic brand with Diet Coke as
extension.
Brand Extension
A new product is launched under existing brand. It often
adds a product of different category. The new associated
brand is a sub-brand.
For example, ITC brand with Sunfeast cookies, Vivel
shampoo, Bingo chips as its sub-brands. In 1994, Titan
Industries Ltd. extended the brand Tanishq, India’s only
national jewelry brand.
Let us see yet another excellent example of
systematic brand extension, Nivea.
Risks of Brand Extension
Just like product launching, brand extension demands time, resource
allocation, energy, and associated risks. When the brand is exposed into
unknown market, it might face dominance among established competitors.
In addition, the brand image can come into trouble too.

Pros of Brand Extension

•Bypass efforts, time, and cost for developing a new brand.
•Leverages the reputation attached to the parent/family brand.
•Saves costs on follow-ups and introductory marketing programs.
•Reduces perceived risk of customer about the product.
•Elevates the parent brand image.

Cons of Brand Extension

•On failure, brand extension can hurt the parent brand image.
•It can cannibalize parent brand if the sub-brand is more successful than
parent brand.
•Creates confusion among customers if not communicated appropriately.
•Can dilute brand meaning.
Brand Adaption Process
Brand adaption is nothing but introducing and engaging the consumer with the
brand. It involves five steps:

•Awareness: Customer knows the brand but does not have complete
information.
•Interest: Customer tries to find more information on the brand.
•Evaluation: Customer tries to know how beneficial the brand would be.
•Trial: Makes first purchase to determine its usefulness or worth.
•Adapt/Reject: Becomes a loyal customer or looks for some other parallel
brand.

Brand Adaption Practices

The brand adaption practices involves the following steps:
•Develop internal (brand managers and representatives) and external launching
(consumer and prospects) of brand.
•Impart positive attitude towards the brand among sales managers and marketers.
•Create high customer demands and expectations about the brand.
•Provide training for the sales and customer care force to practically deliver the brand
promise.

Eg. PayTM
Factors that Influence Brand Extension
There are various scenarios where a brand has successfully extended or failed to
extend. For example, Bic ballpoint pens. It extended successfully into disposable
razors but the extension into perfumes was a failure.

The factors that influence acceptability of a brand extension are mainly:

•Perceived risk: It is the evaluation of uncertainty about the type and degree of
expected loss after making the consumer makes a choice.
•Consumer’s Innovativeness: Personal trait or desire of consumers to try a new
brand/product and thereby experience something new.
•Product Similarity: Greater the degree of similarity of the extended product
with the original product, more is the chance of transferring the positive
effect.
•Parent Brand Reputation and Strength: Brand’s reputation is associated with
the consumer’s perception of the quality of the brand. Strong and reputed
brands leverage extension than weak brands.
 Rebranding
A company requires to rebrand when it decides to change any of its brand
elements such as brand name, logo, slogan, or even a small change in the
message for better communication and more relevant brand promise.
Rebranding is extremely important, expensive to execute, and risky.

Why do Companies Rebrand?

There are multiple reasons behind why companies initiate rebranding. These
reasons can be categorized into two types: proactive or reactive. Let us take a
deeper look.
Proactive Rebranding
It happens when a company anticipates and prepares for future changes in the
market.

To prevent or prepare for future potential threats by competitors.

To plan for international growth, rebranding the products and services into a
consolidated brand thereby saving money over time and creating a greater sense of
brand unity.

To enter into a category of business, product, or market which no longer remains

cohesive to the existing brand identity. In case of Apple Inc., as the company evolved
into new businesses beyond computers, the original brand name Apple Computers
became too restrictive. It was then changed to Apple Inc. At the same time, Apple Inc.
updated its logo depicting its progress.

To attract new audience, or want to appeal to it. In case of McDonald’s ads, it refers to
itself as McDonald’s to target a different demographic from its traditional audience.
To increase the brand relevance in consumer’s mind, the company might decide to
rebrand. For example, when the use of printed Yellow Pages directories started
declining, Yellow Pages rebranded to YP.
 Reactive Rebranding
This branding occurs when the companies need to react to a significant change.
Reactive rebranding might happen in the following situations:

•When companies need to work on negative brand image.

For example, during 1990-2000,

the London based men’s clothes
making company Burberry’s
public image was associated
with hooliganism and violence.
The brand had lost its image so
badly that the clubs and pubs in
UK had started banning entry
for the people wearing Burberry.
The company worked to
disassociate itself from such an
image by changing styles of the
product, changing their logo,
and applying excellence in
everything.
•When companies merge or acquire other companies, or when they separate. For
example, California based Intel rival and chipmaker, Advanced Micro Devices
(AMD) is considering to split shortly.

•When there are legal issues with branding. Trademarks are often the root cause
for rebranding. For example, an Australian business tries to expand into USA and
finds that its existing name is already trademarked and not available for use in
USA.

•When a competitor manifests a company’s brand as useless or outdated, then

rebranding helps to get an opportunity to facelift the brand to effectively strike
back in the market.

•When changes take place in business regulations, laws, competitors, etc.

•When a company lands up into a significant controversy or negative publicity, it

considers rebranding to rebuild the trust of consumers and stakeholders. It cuts up
all the ties with the issues in picture and moves on
Relaunching
Relaunching a brand is reintroducing a brand into the market. Relaunching implies
that a company was marketing the brand but stopped doing so for some reasons.
Relaunching is an opportunity to set new objectives for the brand.
Relaunching a brand can demand the changes ranging from the aspects as minor as
logo prints on stationery and cutlery, staff uniforms, to as major as website of the
company, changes in premises, etc.
How to Relaunch a Brand?
When a company relaunches a brand, it hopes to avoid the mistakes from past
experience and wants to set a strong foot in the market. A brand manager needs to
consider the following do’s and don’ts while relaunching a brand:

•Analyzing the marketplace and target market segment.

•Knowing about the competitor brands.
•Conducting SWOT (Strengths, Weaknesses, Opportunities, and Threats) analysis.
•Positioning the brand in an appropriate new form.
•Avoiding too many changes in too short time. This type of strategy can lead to the risk
of not retaining consumer’s attention and interest for a long time. In future, it can
make the company and its products unrecognizable to its existing customers. Let the
consumer know about the new form the brand has taken.
•Communicating clearly about the brand relaunch. Creating awareness among people
about new objectives and distinctive offers. Making the changes gradually and
noticeably.
Let us see an example of NIVEA FOR MEN relaunch. In 1980, NIVEA introduced an
alcohol-free, non-itching aftershave balm for men. It went popular with consumers,
and then by 1993, NIVEA FOR MEN included a range of skincare products for men.
By 2008, more and more men were investing in skincare and grooming products.
NIVEA FOR MEN brand understood this as an opportunity to claim more market
share in the growing category. To achieve this, NIVEA employed a strategic
marketing to relaunch and reorganize.
NIVEA assessed the marketplace, evaluated its own business, brands, and products.
It also assessed the brand’s position and the state of the market. It conducted SWOT
analysis and revealed some interesting facts such as women are an important target
market for the brand NIVEA FOR MEN as they are instrumental in buying male
grooming products for their partners as well as helping them to choose new ones.
Well-informed with SWOT analysis data, NIVEA FOR MEN brand
management set objectives for relaunch. Using research data to forecast
trends, the marketing force set SMART (Specific, Measurable, Achievable,
Realistic) objectives. This helped in increasing sales, growing market share,
and improving its brand image.

NIVEA FOR MEN adopted a range of key performance indicators to assess the
success of the NIVEA FOR MEN relaunch in the UK. It revealed that:

•NIVEA FOR MEN is the market leader in many countries and is consistently
gaining additional market share.

•Internationally, NIVEA FOR MEN skincare products sale increased by almost

20 percent.

•The NIVEA FOR MEN brand image improved in the minds of consumers.

•NIVEA FOR MEN entertained its customers’ feedback and added products to
its line and reformed the existing products.