Branding in Fashion and Luxury

Session 13

One word two meaning

BRAND

Recognizable identity, name, logo or other symbol which acts as a means of communication between organizations & conusumers

Particular business model in which a company creates desirable products and utilizes third-party channels to distribute them

A brand has grown to mean much more than a logo. Branding begins with the consistency of presentation that becomes the identity of a company. Beyond this it represents a consistent value system that a company presents to the world and that is seen to be that companys way of doing things. On this branding ladder, the challenge is to move beyond the graphic symbols and metaphors to get to the more difficult cultural uniformity that customers and potential customers recognize and value.

Why Should We Be Interested In Branding?

Two companies whose products are virtually indistinguishable. In fact, the two companies compete in a large market in which there are dozens of competitors. However the two companies regularly obtain a 30% premium on their competitors. This is because Coca-Cola and Pepsi-Cola have persuaded us that the phosphoric acid, the H2O, flavourings, colourings, sugar and what ever else they throw into the dark sticky brew is better than that mixed by others and indeed better than simple H2O itself.

What is a brand ?

What a brand means to common person ? In 'blind' taste tests, people prefer the taste of Pepsi over the taste of Coke. However, if the test is not 'blind' and the tasters know which beverage is which, they prefer the taste of Coke over Pepsi! That is the emotional power of a brand. The Coca-Cola brand has the power to actually change an individual's taste! Coca-cola is the no.1 brand in the world. The first shape that was registered is the coca cola bottle.

B2B Branding
Customers value quality and reliability in the service provided, as opposed to conspicuous image. End user fashion consumer who buy clients products, would not know of the PR agency involved. Most contract clothing manufacturers do not brand themselves to consumers and their products are sold with the retailers brand logo on them through the retailers own stores.

B2C Branding
Consumers are more numerous and diverse. Likely to be less loyal Demand a badge that can be worn conspicuously

What is a brand ?

A traditional scenario of market Company A

Company B

Product / services

Consumer

Company C

In a traditional market scenario, the company is catering to the consumer. The number of competitors are small. In these markets the companies can come with advanced technologies and other strategies to capture more market share. (The size and power of the players is important.)

What is a brand ?

Company A Company B Company C

Product / services

Consumer

In complex markets, the differences between companies are not much. The companies can not differentiate much themselves from others on the basis of quality and technology etc. factors as all the companies are competent enough. This scenario explains the need for the differentiation for the companies.

What is a brand ?

Branding is an effort to give a unique identity to the companys products and create emotional associations with consumers. It is a form of marketing. A brand is a set of associations that are linked to a product range, a division, or company. These associations reside in the memory of customers. These associations help customers understand what the brand or company is, why it is potentially relevant to them, how it is different or similar to other products made by the company, and how it is similar or different from competitors products.

What is a brand ?
Branding is a combined effort of the company which is projected to the consumer.

Marketing

Brand

Company

Consumer

Design

What is a brand ?
(1) Products and services have become so alike that they fail to distinguish themselves by their quality, efficacy, reliability, assurance and care. Brands add emotion and trust to these products and services, thus providing clues that simplify consumers choice. (2) These added emotions and trust help create a relationship between brands and consumers, which ensures consumers loyalty to the brands. (3) Brands create aspirational lifestyles based on these consumer relationships. Associating oneself with a brand transfers these lifestyles onto consumers. (4) The branded lifestyles extol values over and above the brands product or service category that allow the brands to be extended into other product and service categories. Thus saving companies the trouble and costs of developing new brands, while entering new lucrative markets. (5) The combination of emotions, relationships, lifestyles and values allows brand owners to charge a price premium for their products and services, which otherwise are barely distinguishable from generics.

Integrity of Brand
Product Packaging

Websites

Product A Product B

Company

logo

Advertisements
A brand is a promise. A promise to achieve certain results, deliver a certain experience, or act in a certain way. A promise that is conveyed by everything people see, hear, touch, taste or smell about your business.

Methods of expressing a brand

How is branding physically applied?

1. On the outside or inside of the garment/ product 2. Packaging when garment is sold 3. Printed communications 4. Transport 5. All advertising and publicity 6. Personal 7. Sound

8. Retail outlets

What is in a name?
The name: refers to the company or product name that is used to articulate the brand.

A logo: is another expression of a companys brand name.

A signature: is often used in fashion & luxury to reference a distinctive designer who may not have the size or level of recognition to be a significant brand.

A unique product attribute: a distinctive product attribute inevitably has the visible capability to convey brand image and values but is more likely to do so through the evolution of companys history rather than as a planned tactic such as logo. E.g. Burberry check

Colour and Sound

AIRTEL music

Brand Positioning

In marketing, positioning is the process by which marketers try to create an image or identity in the minds of their target market for its product, brand, or organization. Brand positioning refers to target consumers reason to buy your brand in preference to others. It is ensures that all brand activity has a common aim; is guided, directed and delivered by the brands benefits/reasons to buy; and it focuses at all points of contact with the consumer. Brand positioning must make sure that: Is it unique/distinctive vs. competitors ? Is it significant and encouraging to the niche market ? Is it appropriate to all major geographic markets and businesses ? Is the proposition validated with unique, appropriate and original products ? Is it sustainable - can it be delivered constantly across all points of contact with the consumer ? Is it helpful for organization to achieve its financial goals ? Is it able to support and boost up the organization ?

Brand Positioning

A brand image and message must make sense to the customers, who seek reassurance that is relevant to their needs and aspirations.

Customer Loyalty

A companys brand positioning may shift slightly from its original one through co-branding. Co-branding describes the strategic link between two operating brands that believe a synergy develops from a collaboration. e.g. Armani and Mercedes Karl Lagerfeld designed for H&Ms Autumn Winter Line

Brand Extensions
Brand Extension is the use of an established brand name in new product categories. This new category to which the brand is extended can be related or unrelated to the existing product categories. A renowned/successful brand helps an organization to launch products in new categories more easily. For instance, Nikes brand core product is shoes. But it is now extended to sunglasses, soccer balls, basketballs, and golf equipments. An existing brand that gives rise to a brand extension is referred to as parent brand. If the customers of the new business have values and aspirations synchronizing/matching those of the core business, and if these values and aspirations are embodied in the brand, it is likely to be accepted by customers in the new business. Boundaries exist in consumers minds about the credibility of a brand selling particular products.

Instances where brand extension has been a success areWipro which was originally into computers has extended into shampoo, powder, and soap. Mars is no longer a famous bar only, but an ice-cream, chocolate drink and a slab of chocolate. Haute Couture designers into perfume, cosmetics and beauty products

What makes up a brand??

Brand models and theory

Brand models and theory

One word brand equity

Successful brands have relied on simple, clear cut proposition that summarizes a brand concept as concisely as possible. Advocates believe that by effectively taking ownership of a word, a brand will more easily take root in the consumers mind.

Brand Image & Values

Brand image refers to a particular mental picture and set of feelings that consumers have about a brand. Brand values normally refers to those values and philosophies held by a brand which are used to differentiate that brand from its competitors.

Bogus Brands
These are imitation brands that use names which reference particular national stereotypes, affording them a perceived quality and design status.

Found at value end of the market.

e.g. a name that includes London, New York etc may be falsely associated with the fashion status of the city.

Why bother Branding??

Brand conscious society. Desire products with meaning, image and emotional benefits

With increased competition, its become difficult for consumers to differentiate

Growth of Experiential Retailing

Benefits of Branding

In fashion, the benefits sought from the products that an individual buys tend to relate to how that individual will be seen by others.
Fashion is highly disposable and has limited life span, consumers buy regularly and there is potential for repeat purchasing.

Benefits of Branding: to a business

Benefits of Branding: to customers of branding

How to Brands work?

Interbrand has identified five portals to a consumers mind

Brands Loyalty
It refers to the deliberate and sustained customer preference for one brands products over other brands products. The key reason why companies brand themselves. Brand Loyalty depends on: Type of market Intangible benefits Competition, and Subsequent risk to customers of brand switching

How do you measure Brands Loyalty?

Relationship Marketing
It is a strategic approach used by a company to retain customers through the delivery of real value and quality products and services that are differentiated from competitors. Achieved through: High commitment to meeting customers expectations Service provisions, and A continuous dialogue with customers over their needs and wants

Categories of Fashion Brands

Own Labels ---Own Brands

Branding strategy is to create desire in customers so that retailers stock the product

Manufacturers

Retailers

Sell the products made by manufacturers and invest in stores

P A S T

Retailers

Own labels

Own Brands
Improved quality competing with Manufacturers brand

P R E S E N T

Luxury Brands
Until 1990s the luxury industry was niche. Focused on very wealthy and sophisticated consumers. Many began as leather goods business. E.g. Gucci, LVMH etc Late 1990s , they became formulaic, using image communication, directly opened stores and runway shows. Strong fashion identity. DNA, Dynasty and heritage

End of Session