Professional Documents
Culture Documents
What is a brand?
A name, a term
A symbol, a sign
Branding process
Brand
the actual image of the
firm in customers’ minds
Competition
And Noise
Contd..
► BRAND IMAGE is a unique set of
associations in the minds of customers
concerning what a brand stands for and the
implied promises the brand makes.
► BRAND IDENTITY is the strategic goal for
the unique set of associations that a brand
should stand for. These associations also
imply a potential promise to customers.
► PERCEPTION GAP.
Brand Hierarchy
Brand Hierarchy is how an organization organizes
the various named entities within its portfolio, and
how they relate to each other.
The four general types of Hierarchy are:
1. Master brand : Maruti Suzuki
2. Brand/sub brand : Maruti
3. Endorsed brand : Maruti Esteem
4. Separate (stand-alone or independent) brands:
LXi/ SXi
Top 10 Global Brands*
* http://www.interbrand.com/best_global_brands.aspx
Brand Positioning
► Brand Positioning
“Positioning is how a product appears in relation to
other products in the market”
Brand positioning is all about identifying the
optimal location in our customers’ minds for our
Brand vis-à-vis with our competitors
Proper positioning makes it easier to facilitate
understanding of our Brand
Developing a Positioning Strategy
► Positioning is not what you do with a
product but what you do in the mind of the
prospects.
► Positioning requires determining the frame
of reference by identifying
► Target market
► Competition
► POP’s and POD’S
Category membership
► Starting point in brand positioning is to determine
Category Membership.
► Category membership is product or set of products
with a brand competes and which functions as
close substitutes
► Three main ways to determine category
membership:-
► Announcing category benefit
► Comparing to exemplars
► Relying on the product descriptors
Target Market
Consumer Aggregates
Current users
Potential users
Competitive users
Consumer Segments
Behavioral
Dem/psych/geo
Points of Difference & Parity
Difference
► Strong, favorable, unique
► Attribute or benefit
Parity
• Shared with other brands
• Important for brand extensions
POP’S
► Point of Parity (POP)
► Two Types
► Category : attributes that are required to
include your product as a member of that
category.
► Competitive: POP’s that negate your
competitor's POD’s
► POP’s should be “good enough” but POD’s
should be superior
Choosing the differentiating strategy
► Product differentiation
► Personal differentiation
► Channel differentiation
► Image differentiation
Choosing the pop’s and pod’s
► Relevance
► Distinctiveness
► Believability
► Feasibility
► Communicability
► Sustainability
Proper Positioning
► Clarifieswhat the Brand is all about
► How it is both unique and similar to
competitive brands
► Why customers should purchase and use
the Brand
5 Factors of Brand Positioning
1. Brand Attributes : What the brand delivers through features and
benefits to consumers.
► Decay Prevention
Decay Prevention
► Low Price
Brand Equity
► Brand Equity is the value of a brand built up over
a period of time. It is composed of four
components namely Image, Perception,
Awareness and Loyalty.
► David Aaker defines brand equity as: “A set of
assets and liabilities linked to a brand's name and
symbol that adds to or subtracts from the value
provided by a product or service to a firm and/or
that firm's customers”
► Brand Equity is an asset that can be sold or leased
► BEis an important intagible assets that has
psycological and financial value to the firm.
Measuring Brand Equity
► Brand Audit – It is a consumer focused exercise that
involves a series of procedures to assess the health of a
brand, uncover sources of brand equity, suggest ways to
leverage that equity.
► Is current brand equity satisfactory
► What brand associations needs to be strengthened
► What brand opportunity exist
► What potential challenges exist from the brand equity.
► As a result strategic analysis to develop a new marketing
program to maximize long term brand equity
Steps of Brand Audit
► Brand Inventory:- Provides a current comprehensive profile
of how all the product and services sold by a company are
marketed and branded.
► Marketers helps in assesing and finding the consistency od
diff product and services sharing the same brand name.
► Brand Exploratory:- It is a research activity conducted to
understand what consumers think and feel
.Surveys,questionnaire,interviewhelps in generate ideas ,
insights,
► Techniques are used as projective
technique,vizualizationword association test.
Brand Tracking
► Collect information from consumers on a regular
basis time to time
► Helps in providing information how their marketing
programs and brands are performinh
► Tracking studies are a means of understanding
where, how much, and in what ways brand values
is been created.
► Helps in facilitating day to day decision making.
Brand Valuation
► Itis the total financial worth of the brand.
► Premium charged*no of units sold.
Managing Brand Equity
► Brand
Reinforcement – consistently convey the
meaning of the brand to customers
What the core brand represents, benefits supplied,
which needs it satisfies
How brand makes those product/service superior and
which strong favorable unique brand association should
exist in the mind of customer
Requires new product introduction
Requires consistency of marketing support (new
offerings, new promotions)
Example- Nivea from skin crème to skin care and
personal care products.
Early 70s brand still a leader-coke kodak,hienz,wrigleys
Brand Revitalization
► Brand Revitalization –
Go back to basics of
consumer needs and wants
– finding gaps in market or
at the other end of spectrum
– go for reinvention (Intel).
Revitalization finds elements
of both of the above, to
refresh existing sources or
find new sources of brand
equity e.g. Lifebuoy
Reasons of Brand Revitalization
► A new competitor may have taken over the category and
the company is struggling to generate revenues from the
current product (colgate-closeup)
► A new variant has to be launched in order to regain
market share.
► The whole product or service category may be declining,
and a brand could be one of many brands that could use
revitalization
► Revitalization may be needed in order to communicate
category leadership, as well as develop an energized new
visual identity system
► Brand may no longer meet the consumers’ needs or
desires, where in the consumer has shifted to a different
platform.
► Revitalization may just be a need increase market share as
the brand image may be becoming less relevant to people.
► It may be time to re-position the product or rejuvenation
may be a spike in promotion activity.
► The brand has lost its unique point of differentiation and
thus looking to revitalize the product or brand with a new
image.
► The target market for the brand has aged, and the brand
hasn’t managed to renew its positioning in the minds of
the next generation of consumers as was the case with.
(lalita ji – surf)
► Consumers’ needs have shifted from price to value
Examples
► Mountain Dew – introduced in 1969
► (yahoo mountain)
► 1990- Do the Dudes (young males)
► 2000- Do the dew
Brand Crisis
► Critical of planning is planning for worst
► Smart company have effective corporate
crisis management policy.
► Careful preparation and well managed Crisis
management program ensures corporate
credibility and trustworthiness
► Example – Frozen pizza, packaged Milk
Brand Equity Models
► Brand Asset valuator
► Aakers Model
► Brandz
► Brand Rssonance
Aakers model
► Viewed BE as a 5 categories of asstes and liabilities linke to
a brand that adds and subtract to the value
► Brand loyalty
► Brand awareness
► Percieved quality
► Brand association
► Other proprietory assets such as trademark patents and
channel relationship.
► Imp concept in building BE is Brand Identity who had 4
prospectives
► Brand as product, brand as organization, brand as
person,brand as symbol
Factors influencing Brand Equity
Positive or Negative Brand Equity
Brand Extension
► Brand extension or brand stretching is a
marketing strategy in which a firm
marketing a product with a well-developed
image uses the same brand name in a
different product category. The new product
is called a spin-off. Organizations use this
strategy to increase and leverage brand
equity
Benefits of Extension
► Price premium that a brand commands over a
generic product
► Reduce risk perceived by customers
► Increase the probability of distribution and trial
► Increase efficiency of promotional expenditures
► Reduce costs of introductory programs
► Avoid cost of developing a new brand
► Create opportunities to extend into more distant
product categories
► Build equity
Line Extension Strategy
►When a brand is used to brand a new
product that targets a new market
segment within a product category
currently served by the parent brand.
►Examples:
Coca-Cola diet
Colgate for Kids
Line Strategy
► Horizontal: the brand extends to new
varieties of the product. E.g. pineapple,
strawberry, Mango.
MARKET
•Information EXTENSION
Success of Brand •Fit
•Characteristic and
Nº Competitors Extensions
• Choice Shares
• Sales
• Evaluation
• Perceived Risk
• Profit
•Market Share
CONSUMERS
•Knowledge BRAND/FIRM
•Risk Aversion
•Brand Strength
Disadvantages of Brand Extensions
► Can fail and hurt parent brand image
► Can succeed but diminish identification with
any one category
► Can dilute brand meaning
► Can forgo the chance to develop a new
brand
► Can damage company credibility
What is brand personality?
►Brand Personality is a set of human
characteristics associated with a brand
► Differences
in responses by different
consumers provide useful insights
► Some examples…
Apple’s bitten apple
Nike’s swoosh
MetLife’s Peanuts character
To Sum Up……
► A brand personality can help a brand in several ways:
It can provide a vehicle for customers to express their own identity
A brand personality metaphor helps suggests the kind of
relationship that customer has with brand
Brand personalities serve to represent and cue functional benefits
and product attributes well