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Brands and Branding

“What’s in a name? That which we call a rose by anyother word would smell as sweet”, said Shakespeare.What explains McDonald’s, Apple I Pod, Toyota and HarleyDavidson, etc., to be among the top 100 brands? Is ittheir sales revenue? No. Is it their years of existence? No.Is it their global presence? No. If all of these are notindicative of the companies’ entitlement to feature in theglobal brands’ list, what then explains their inclusion? Theanswer is Brands. Because these companies are able tocreate, nurture, and sustain powerful brands and all theabove stated inferences are consequences of theseuntiring efforts. The next question is what’s a brand? Abrand is a collection of perception in the minds of theconsumers and resides in the minds of the consumersand resides in their minds. It propels them with a veryhigh perceived association value. A brand is not a byproduct, an ad campaign, a logo, a spokesperson or aslogan. It is a differentiating identity and the mostimportant reason for the employees, investors andcustomers to associate with the company. It is the firm’smost important asset in the long term. It is also a bondbetween the customers and the company. A brandassures reliability and quality. Brand owners have apowerful incentive to ensure that each pie is as good asthe previous one because that would persuade people tocome back for more.Brands are perceptions. The Volvo brand stands for“safety”. The Mercedes Benz brand is associated with

“prestige”. “BMW means “the driving”. Can theseperceptions be influenced or managed? That is preciselywhat is executed through branding. Branding is creating acorporate brand identity imprinted on the minds of consumers, and this requires brand positioning and brandmanagement.Brands are the tools with which companies seek to buildand retain customer loyalty and branding often requireshuge investment on advertising and a good marketingstrategy. A strong brand can raise prices as well asbarriers to new entrants.In the age of increasing commoditization and at the juncture when the so-called “distinctiveness” is gettingblurred due to increasing competition, the relevance of brands is questioned.An interesting phenomenon is evolving on the horizonpertaining to the role of brands. As the world economiesare integrated, the income levels are also on the rise.Increased income levels are creating brand consciouscustomers. And these customers pay more for a brandbecause it seems to represent a way of life. They areaffording an aspirational lifestyle as manifested by abrand. The companies that can match the aura of theirbrands with the aroma of new lifestyle stand to gain intoday’s world.

What is a brand today?

We live in a marketing world today. Everywhere you go,every corner you pass and any discussion you have isbound to be about brands- be it an F1 race, the WorldCup, some big corporate scandals, some ITproduct/services you just brought, etc. Brands are allaround us. Most CEO’s and marketing managers haverealized that they are dealing with a very chaoticsituation today in terms of brand building and marketing.Although it is important to gain marketing andpromotional skills and know-how, it is even moreimportant to question what one’s brand means to themarkets in today’s context.

What does it mean to be a brand today andtomorrow?

Instead of defining a brand in the traditional context of brand identity, brand image, brand profile, brand DNA wecan define a brand as an entity(product, service,company, person, technology, etc.,) that offers a set of value exchange measures between what theowner/market seeks and the price he is willing to pay for. The set of value exchanges can be portrayed as beingsimilar to tentacles of the entity as it reaches out toengage the market, and in return the brand gainseconomic profits.Innovation is important in today’s competitive market; wecan no longer qualify a product, service or company asbranded just because it is well known. The importance