BRANDING

Main Tasks in Managing Brands

Selecting brand name and logo,
Giving the product an identity and enhancing its visual
recognition.
Differentiation: Investing the brand with the attributes
necessary to compete.
Positioning the brand: Developing the right value
proposition and lodging it as the best choice for the target
customer.
Providing the right distribution and promotion support, in
tune with the brand’s positioning.
►Keeping the brand live and Strengthening the brand
portfolio through acquisition/takeover.
►Monitoring the brand through the various stages of its
life cycle.
►Brand portfolio rationalization / restructure.
►Understanding brand equity and building the equity of
brands.
 SELECTING BRAND NAME

A Good brand name will be

►distinctive;
►easy to pronounce,
►recognise and remember;
►may denote something about the nature / function of the product,
►also be appealing.
►Example: Good Knight, Banish, Hit, Complan, Quick fix, Boost,
Milkmaid, Cherry Blossom
 NAMES COMMUNICATING FUNCTIONS /
ATTRIBUTES OF THE PRODUCT

►Good Knight – Offers a good night’s sleep

►Boost – energy booster drink
►Aqua guard – protected water
►Fair & Lovely – Fair & Lovely Skin
►Srichakra - TVS Tyre
►ShineX - Instant Polish
►Walkman - First portable stereo
NAMES WHICH COMMUNICATING THE SPECIALITY OF
THE PRODUCT

Communicate the speciality of the product through the chosen name

►GM’s Opel
►Ford’s Ikon
►Mitsubishi’s Lancer
►Suzuki’s Zen
 USE OF ACRONYMS AS BRAND

►AMUL – Anand Milk Union Ltd.

►MRF – Madras Rubber Factory
 USE OF COMPANY NAME AS BRAND

►BATA
►CADBURY’S
►SAMSUNG
►PHILIPS
►SONY
►VIDEOCON
 SELECTING THE LOGO
►Logo for visual identification.
►Logo enhances recognition by the provision of a symbol of
identity.
►Logo is pictorial symbol.
►Examples for Logos : Flags, Mascots, Pictures, graphic
design, splash of colours, plain alphabets are all used as logo.
►Logo and the brand becomes inseparable overtime.
apple Andhra bank
 Some well known LOGO’s

►Air India’s Maharaja

►Kelvinator’s Penguin
►Asian Paint’s Gattu
►Onida’s Devil
Do’s & Dont’s in selection of LOGO

►Logo should fulfill the requirements of media suitability.

►Flexibility to accommodate national / global and business-to-
business marketing contexts.
►Memory value of the logo.
►Very choosy about the features to be incorporated in the logo.
►Design must aid memorability.
►Uniqueness – for better identification and response
 Changing the LOGO

►EICHER – head of a horse for over three decades.

►When Eicher diversified into many unrelated fields – the new logo
showed “the movement of a galloping horse”.
 Branding Name, Logo and Slogan

Brand Name Logo Slogan

► Onida The green-eyed devil Neighbour’s envy owner’s pride
► MRF radial The man with steel muscles India’s answer to world-class car
Options is Branding
To adopt :
• individual brand names for each individual product.
• family brand name/umbrella brand name for all products.
• company name as the brand name.
• Branding by middle men / distribution houses i.e. store brand.
 Individual brand names
Each product of the company is given an independent brand name.
Examples :
►Dove, Lux, Pears, Lifebuoy, Liril, Hamam
►Surf, Rin, Wheel
►Close up, Pepsodent
 Family brand name / umbrella brand name
► AMUL – Amul milk powder, Amul butter, Amul ghee, Amul
Chocolates, Amul Icecream
► VIJAY – Vijay Electricals, Vijay Mixie– grinders, Vijay electric irons,
Vijay electric kettles
► VIDEOCON – Videocon TV’s, Videocon refrigerators, Videocon
washing machines
► GODREJ – Godrej Locks, Godrej Steel almirahs, Godrej Office
furniture, Godrej electronic typewriter, Godrej air conditioners
Benefits of Family brand name/umbrella brand name

►Promotion of such products becomes easier and less expensive

under a family brand.
 Company name as brand name

►BAJAJ
►GODREJ
►PHILIPS
►CADBURY’S
►JOHNSON & JOHNSON
 Middleman’s Brand / Store brands / private labels

►Small Manufacturers who do not possess the financial

and management resources for building brands and
doing marketing and promotion on their own, such
manufactures let their products for branding by the
distributors/retail chains such brands are called
middleman’s brand.
►Example : SPENCER’S Bread, Food world
 Brand Extension
1. Extending to other items in the same product line. (Line Extension)
Examples:
►Colgate Gel
►Colgate Calciguard
►Colgate Total
►Colgate Herbal

►Sunrise Premium
►Sunrise Extra Coffee

►Surf Ultra
►Surf Excel
►Surf international
 Brand Extension
2. Extending brand name to products in a related line.
Example:
►Maggi Noodles
►Maggi Ketch up
►Maggi Soup

►Dettol antiseptic soap

►Dettol Plaster
►Dettol Hand wash
 Brand Extension

3. Extending brand name to products in a Unrelated line.

Example:
►Enfield motorcycles
►Enfield Gensets

►LG Electrical appliances

►LG Soap
►LG powder
 Requirements for success of Brand Extension
1. Consistency Factor:
Consistency between parent and extension product.
Look at the example below:
Pond’s Talcum powder – parent
Pond’s Toothpaste – Extension
This Extension will suffer in the market because of inconsistency.
2. Brand’s Area of Expertise:
Consumers find the extension credible.
3. Benefit Transfer:
5-star ice cream, 5-star chocolate
 BRAND REJUVENATION
►Adding value to an existing brand by improving product attributes
and enhancing its overall appeal.
►Intended to re-focus the attention of consumers on an existing
brand.
Examples:
►New Vicks Vaporub
►New Bournvita
►New Nescafe
►New Burnol
►New Horlicks
►Amruthanjan Extra Strong,
►Super Rin etc.
New shapes, New pack sizes, New containers, new colours, new flavours
 BRAND RELAUNCH
► Some Brands fail to take off and some other face decline;

► so the firms do not want to give up

► usually like to give the brand one more trial;

► some improvements/changes are incorporated

► and the brands are relaunched with the support of a new

campaign.
Examples:
►Santoor – New Santoor
►Godrej Marvel launched in 1986 and relaunched in 1990
►Close up launched in 1970’s and relaunched in1989
 BRAND PROLIFERATION

►Several Brands in the same product or product category.

►Helps expand the market as well as the company’s market share
in the category.
►Increases the company’s power, by offering variety.
 DISADVANTAGES OF BRAND PROLIFERATION

►Several Brands in the same product line with an amount of parity

among them, the danger of cannibalization is high; the share of
individual brands can come down.
►Several Brands may not guarantee proportionate returns;
nurturing just a few brands to a highly profitable level often proves
to be a wiser option.
BRAND DEVELOPMENT THROUGH ACQUISTION/TAKEOVER

►Companies in high competition and compulsions of growth often

do not have enough time, so they find takeover/ acquire / buyout
on going brands as an easy way out.
Examples:
►Pepsi acquire Duke, Mangola
►Godrej acquires Good Knight
►Reliance Life Insurance acquire AMP Sanmar
 BRAND PORTFOLIO RATIONALISATION /
RESTRUCTURING

►Firm recognizes that it has too many brands and the product
lines, which dissipate its resources and effort.
►The firm decides to cut short the product line and prune its brand
portfolio by eliminating some of the brands.
Example :
►Procter & Gamble
►Dabur
 PROCTER & GAMBLE

►New strategy is to focus on a few successful global brands like

►Pantene and Head & Shoulders in hair care
►Ariel in laundry
►Vicks in health care
►Procter & Gamble dropped few brands, it has also been cutting
brand variants and line extensions.
►Procter & Gamble decided to sellout/drop some of its brands.
 DABUR
►Pruning its brand portfolio consisting of around 30 brands over
different product lines.
►Dabur finally decided to stay with three product lines – foods,
personal care and health care. And 12 to 15 brands.
►Other brands offered for sale.
►Chosen Brands are : Chyawanaparash, Hajmola, Pudin Hara,
Hingoli, Restora, Amla Hair Oil, Vatika, Anmol coconut oil, Real
Fruit Juice
►Dabur is also spending huge advertisement for the selected
brands.
 BRAND EQUITY

►Set of brand assets and liabilities that is linked to a brand.

►Brand equity is the net result of all the investment and effort that a
marketer put into building a brand.
►Usership of the brand, consumer loyalty towards product,
perceived quality, positive symbols, favourable associations
around the brand… a bundle of all these attributes together result
in brand equity.
 MEASURING BRAND EQUITY – METHODS

►Brand earnings multiple approach : Research agency, involves

determination of brand strength score, assessment of brand
earnings multiple and charging adequate return on capital.

►Royalty based approach : estimates the amount of royalty income

that could be generate if the subject brand were leased by an
independent third party.

►Profit split approach : estimate the amount of profit that could be

split between the brand and other intangible assets.
 MANAGING BRANDS
►HLL Locates Positioning Opportunities:
►HLL Hires Brands to Capture New Opportunities:
►Example : Dettol – Antiseptic Soap
►HLL hire the “Savlon” from Johnson & Johnson to meet the customers of
health consciousness segmented customers.
►Cautious in creating new brands:
►New brand to succeed in a competitive market, it should be either be
superior to all existing offerings or it should represent a new positioning
altogether.
►Every Brand must be viable in its own right:
►Determining number of Brands, Extensions, Variants and Pack
Sizes:
 MANAGING BRANDS

►Enriching the Brand: Product Up gradation

►Brand Strategy in Diversification context:
►Acquisitions, Mergers and consolidation. They were part of expansion and
diversification programmes.
►Umbrella Brands to cover the Entire Category:
►Example: 3 Roses, Red Label, Tajmahal have been brought under
“Brooke Bond “
 BRAND RATIONALISATION
►HLL Keeps 30 power brands, plays down 80 others :
►30 Brands contribute – 75% of HLL turnover and profits.
►80-odd Brands - 25% of HLL turnover and profit fall under three
categories:
►Regional Jewels: Hamam – Tamilnadu
►Brands, which are small and unprofitable – Close-up, Aim toothpaste
►Brands with overlapping positioning – Breeze and Jai are
overlapped.
 30 Brands of HLL

Lifebuoy ,Lux, Liril, Dove, Breeze, Pears, Fair & Lovely, Rin, Clinic,
Axe, Rexona, Red label, Brooke Bond A-1 , Lipton Taaza, 3 Roses,
Tajmahal, Wheel, Comfort, Surf, Close-up, Pepsodent, Sunsilk, Bru,
Kissan, Kissan Annapurna, Kwality Walls, Ponds, Lakme, Elle 18