INTERNATIONAL

MARKETING MANAGEMENT

8. BRANDING STRATEGY

By
Dr. M.C. Harbola

 PURPOSE OF BRANDING
TO DIFFERENTIATE ONES PRODUCTS IN THE MARKET
DEVELOPING COUNTRIES MARKET MOST PRODUCTS AS
UNDIFFERENTIATED COMMODITIES WITH ADVANTAGE
OF PRICE COMPETITIVENESS UNSUSTAINABLE FOR LONG
PRODUCTS FROM DEVD. COUNTRIES COMPETE ON THE
BASIS OF BRAND IMAGE BUILT OVER YEARS IN TERMS OF
QUALITY N CREDIBILITY
INCREASING COMPETITIVE INTENSITY IN MARKET HAS
LED BRANDING OF BASIC COMMODITIES LIKE RICE, TEA,
EDIBLE OILS, SALT N PETROLEUM
HENCE IT IS PERTINENT FOR FIRMS IN DEVG. COUNTRIES
TO LEARN CONCEPT N TACTICS OF BRANDING

 CONCEPT OF BRANDING N ITS EFFECTIVENESS AS A TOOL

IN MARKETING

THE AMERICAN MKTG. ASSN. DEFINES A BRAND AS A

NAME, TERM, SIGN, SYMBOL OR DESIGN OR A
COMBINATION OF THESE TO IDENDITY N DIFFERENTIATE
THE PRODUCTS FROM THOSE OF COMPETITORS
UNDER THE TRADEMARK LAW, A SELLER IS GRANTED
EXCLUSIVE RIGHTS TO USE THE BRAND NAME FOREVER

BRAND NAME DIFFERS FROM OTHER ASSETS LIKE

PATENTS N COPYRIGHTS WHICH HAVE EXPIRATION DATES
UNBRANDED PRODUCTS R NOT SUSTAINABLE FOR LONG
IN COMPARISON TO COMPETITORS MARKET OFFERINGS
JEANS INITIALLY MEANT FOR MINING LABOURERS BUT

BRANDING THE SAME BY LEVYS ADDEDED INTANGIBLE

BENEFITS TO THE PRODUCT

OF THE WORLDS 10 MOST VALUABLE BRANDS, e.g.,

COCA COLA, MICROSOFT, IBM, GE, INTEL, DISNEY,
McDONALDs NOKIA, TOYOTA N MARLBORO, 8 COME
FROM US
NO. OF BRANDED PRODUCTS FROM ASIS IS VERY LOW N
THAT TOO IS ONLY FROM JAPAN N KOREA

PRODUCTS FROM ASIAN COUNTRIES LIKE INDIA R

MARKETED AS UNBRANDED ONES WITH COMPARATIVELY
LOWER PRICES
THE LONGIVITY OF BRANDED GOODS IS MUCH HIGHER
THAN THAT OF UNBRANDED GENERICS

 AMONG INDIAS 20 MOST TRUSTED BRANDS, ONLY 20%

R OF INDIAN ORIGIN, SUCH AS TATA SALT, TATA TEA,
FAIR N LOVELY, TITAN N RASNA
IT IS GLOBAL BRANDS DOMINATING INDIAN MARKETS
TYPES OF BRANDS
MAJOR BRANDING STRATEGIES NEED A FIRM TO TAKE
DECISIONS ON THE FOLLOWING ISSUES:

BASIC DECISION WHETHER TO BRAND THE PRODUCT

DECISION TO VE MANUFACTURERS OWN BRAND OR A
PRIVATE BRAND
DECISION TO VE A LOCAL, NATIONAL OR GLOBAL
BRAND

 DECISION TO VE SINGLE OR MULTIPLE BRANDS

BENEFITS OF BRANDING
BRANDING CREATES DIFFERENTIATION BETWEEN THE
FIRMS N COMPETITORS PRODUCTS
PROVIDES A MARKETING EDGE TO THE BRANDS SO THAT
THEIR PRICES R AT RELATIVELY HIGHER LEVELS THAN
THE COMPETITORS N SECURE BETTER MARGINS
BRANDS FACILITATE COPING WITH MARKET
COMPETITION N INCREASE THE LIFE OF A PRODUCT

BRANDS FACILITATE THE FORGING OF AN EMOTIONAL

RELATIONSHIP BETWEEN CONSUMERS N PRODUCTS,
HELPING A BUYER TO ARRIVE AT A DECISION SUPPORTED
BY THE CREDIBILITY OF A PARTICULAR BRAND

 SELECTING BRAND NAME FOR INTL. MARKETING

IMPORTANCE OF UNDERSTANDING THE CULTURAL
TRAITS OF THE TARGET MARKETS WHILE SELECTING
BRAND NAMES
MISTAKES MADE BY SOME OF THE MOST VALUABLE
BRANDS, e.g., COCA COLA ENTERING CHINESE MARKET
IN 1920 AS COCA COLA CHINESE KOW-KE-KOU-LA
COKE HAD TO CHANGE THE BRAND NAME TO KE-KOUKE-LE THAT MEANS HAPPINESS IN THE MOUTH
AMERICAN MOTORS MATADOR TRANSLATES IN
SPANISH AS KILLER
FORDS TRUCK FIERA TRANSLATES IN SPANISH AS THE
UGLY OLD WOMAN

 PEPSIS SLOGAN COME ALIVE WITH PEPSI TRANSLATES IN

GERMAN AS COME OUT OF THE GRAVE

BRAND IMAGE
IMPRESSION CREATED BY A BRAND ON THE CONSUMER
MAY B TERMED AS BRAND IMAGE
THE WAY BRAND IS PERCEIVED DETERMINES ITS IMAGE,
FOR EXAMPLE, PHISICAL INFRASTRUCTURE OF A B
SCHOOL
BRANDS MAY VE DIFFERENT IMAGES IN THE IN THE
MINDS OF THE CUSTOMERS, SUCH AS MARLBORO
PERCEIVED AS A MANS CIGARETTE
SINGAPORE AIRLINES BUILT ITS BRAND IN INTL. MARKETS
EMPHASING THE SUPERIOR SERVICES ONBOARD

 BRAND EQUITY
DAVID A. AAKAR, A LEADING AUTHORITY ON
BRANDING DEFINES BRAND EQUITY

- AS A SET OF BRAND ASSETS N LIABILITIES LINKED

TO A BRAND, ITS NAME N SYMBOL THAT ADD TO
OR SUBTRACT FROM THE VALUE PROVIDED BY A
PRODUCT OR SERVICE TO A FIRM N/OR TO THAT
FIRMS CUSTOMERS
- HIS CONCEPT OF B.EQUITY IS BASED ON FIVE
COMPONENTS BRAND LOYALTY, PERCEIVED
QUALITY, BRAND ASSOCIATION, OTHER
PROPRIETARY BRAND ASSETS, N NAME
AWARENESS

- THESE R ALSO REFERRED TO AS BRAND ASSETS N

- BRAND EQUITY ASSETS PROVIDE VALUE BOTH

TO FIRM N THE CUSTOMER
- AN OWNER OR USER OF TANISHQ OR DE-BEERS
JEWELLERY HAS A DIFFERENT FEELING OF
SATISFACTION WHILE USING THE PRODUCT

BRAND POSITIONING
REFERS TO THE ART OF CREATING A DISTINCT IMAGE OF
THE BRAND IN THE MINDS OF THE CUSTOMERS

SUCCESSFUL POSITIONING OF A BRAND INVOLVES ITS

AFFILIATION WITH SOME CATEGORIES THAT CONSUMERS
CAN READILY GRASP N DIFFERENTIATE FROM OTHER
PRODUCTS IN THE SAME CATEGORY
BRAND REVITALIZATION
SOME OF THE BEST BRANDS MAY LOSE THEIR

ATTRACTION FOR THE CUSTOMERS N MAY NEED

REVITALISATION
- DALDA, BINACA TOOTHPASTE, MURPHY,
LAMBRETTA, AFGAN SNOW, FORHANS N
ILLUSTRATED WEEKLY - SOME OF THE LEADING
INDIAN BRANDS VE LOST THEIR RELEVANCE NOW
- VARIOUS TECHNIQUES USED FOR REVITALISING A
BRAND INCLUDE:
EXPANDING USER BASE
INCREASING OCCASIONS OF BRAND USE
PENETRATING NEW MARKETS
STRENGTHENING THE INTANGIBLE BRAND
COMPONENT
BRAND REPOSITIONING
BRAND EXTENSION

- BRAND REPOSITIONING AIMS AT INCREASING THE

RELEVANCE OF THE BRAND FOR THE CONSUMERS,
INCREASING OCCASIONS FOR USE, ATTRACTING
NEW CUSTOMERS N MAKING THE BRAND
CONTEMPORARY
- BRAND EXTENSION REFERS TO EXTENDING THE
BRAND INTO OTHER CATEGORIES THAT MAY B
RELATED N UNRELATED TO IT, e.g.,
LIFEBUOY SOAP TO LIFEBUOY LIQUID SOAP
VIM UTENSIL WASHING POWDER TO THE VIM
BAR
BRITANNIA BISCUITS TO BREAD
GILLETTE RAZORS TO GELLETTE
AFTERSHAVE

- EXAMPLES OF UNRELATED BRAND EXTN. R

TATA, GODREJ, T-SERIES ETC., e.g.,
TATA STEEL, AUTOMOBILES, TELECOM.,
CONSULTANCY, TEA, SALT etc,

THANKS