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    210 views42 pages

    Concept of A Brand

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    Gunjan Sharma
    Brand Knowledge

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    © All Rights Reserved
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    | of a Brand a Pree ee ee The Beginning Brands and Products Brand Perspectives Brand Perspectives: The Six Possibilities Anatomy of a Brand What isa Brand? WHY BRANDS MAKE SENSE? Brands are Customer Possessed « ‘Summing Up. mma] sean ae MANAGEMENT Brands have been around for many yeats. They existed silently Managers thought about branding once the product was developed, priced, and packaged. Branding was an afterthought—of little significance for the marketers, who fele that the product was more important. The tangible aspects captured more attention, Branding meant passively assigning names to pre-manufictured products, But in the last tw decades, the brands have awakened from their slumber, They are the hot spots in total marketing process. Among the manager’s chief concerns, brands reign at the top. Brands are universally acknowledged as drivers of financial performance of a company. They are the cynosures of marketing people:’and they constantly figure in financial strategy-and valuations. When brands are so important, branding becomes even more so. ‘The star brands which rule the roost in the global markets are objects of desie for marketers who lack powerful brands to promote. Brands like Marlboro, Sony, Kodak, Coca-Cola and BMW leave marketing managers drooling. These brands are outcomes of careful and well crafted branding strategies. To achieve this end, managers need to approach branding cautiously and with dedication. Bue che process’ of branding cannot be approached correctly if confusion surrounds the concept of brand. There is a need to confront the citcal issue: whac a brand is, and what ie is noe. THE BEGINNING Branding began much before che term entered the lexicon of modern marketing thouight. Ie can be traced to ancient civilizations. The Greeks, the Romans and people before them employed vatious ways to promote their wares such as wines, ointnients, pots, or ‘metals. Messages would be inscribed on them informing the public that such-and-such a man, at such-and-such address, could make shoes and that che man WM lived over there, ac that address, was a scribe. The Greeks also used town ctiers to annourice the arrival of ships with particilar cargos.! Brands are inexcricably linked to uniformity or homogeneity. As long.as something remains single or unique, there would be no need of branding, for instarice, the Taj Mahal or the Qutub Minar. No one has difficulty in separating chem from other monuments. Teis the uniqueness of these structures that sets them apare fiom a POSCOOCCECAOCORGGOT0000060008 concep of Sond lms the rest. They are easily identified. But difficulties would arise if wwe have identical Taj Mahals or Qutub Minars. A qualifier would be requited to set one of them apart from the others. Uniformity is the mother of branding. Naming individuals is the branding practice followed to differentiate one person fiom others. In the early ewentieth country, agriculturists employed a variety of tools to brand their produce. Branding becomes an imperative when identity is lost dué to homogeneity, for branding in its simplest form is a differentiator. One can trace the etymology of the word ‘brand’ to its origin in the old Notse word ‘brands’, It mens ‘to burn’? In eatly times, farmers used to burn a mark or a symbol on their animals to identify their livestock From those of others—a process called branding, This practice is common even today. Branding in a modern context has always been an important aspect of marketing. In che sixteenth, country, distillers used branding in their own way. They burned or branded their name on the wooden containers, called kegs or casks, so that the whiskey of one distiller could be identified from that of others. Ic also prevented tavern owners from substituting cheaper versions. ‘Consumer identification with the product and protection continues to guide branding practices even today. The brand concept evolved further in the eighteenth ceatiry. Earlier the producers’ names identified the products. It was a kind of corporate umbrella branding. In face, the identity of the producer tised to be the brand name. For instance, Smienoff vodka takes its ‘name from the Smicnoff family which went into the vodka business in the year 1818, Ford automobiles proudly display the name that belongs to Henry Ford I—the founder of the company. Many other brands that cook the names of their creators ’ include Rolls-Royce, Seaés; Waterman fountain’ pen, Mercedes Bena, Ponds, Bakers, Bugatti cars (after the founder, Etcore Bugatti), Morris, Edison Phonograph,’ Hammond typewriters, Remingcon : typewriters, Levi's (after Levi Strauss, the founder). The names of _ produces began to get'replaced-by iames of places (Polar, Artic, « i Bufma teak) famous people (Hilton, Tommy Hilfiger) and even animals (Kangaroo, Cobra). This was done to strengthen che 3 | Mamma GRAND MANAGEMENT association between product and the brand so that brand was easy to remember and also to distinguish the product among its fellows within the same category. The real boost to branding came in the middle of the twentieth century. Originally, production was craft based and localized. Since craft is producer specific, the output was automatically: differentiated. Also,, because craft is time-consuming, ic limited production to a low level. Hence, markets were small and localized. But the dawning industrial wave altered produiction methodologies industrialization brought assembly lines, large corporations, and standardization. There was a distinct move towards mass production and homogenization. Manufacturing plants began co use similar technology, churning out similar products, This resulted in one product being virtually indistinguishable from the others in its ‘category. Consumer goods industries, especially the non- durables, were the first ones to be influenced by this phenomenon. ‘There was an array of detergents, soaps, teas, coffees, chocolates, biscuits, which could not be distinguished one from the other. This created branding compulsions for the manufacturers. “The formal history of brands is in many ways a prosaic one, starting not all that many years igo when mass production and wider distribution led manufacturers to identify (or brand) theie ‘merchandise in a recognizable way, so as to offer a promise of consistent quality.”? This was not very different from its original purpose, as seen in anciene times. i A glance at the brand which doniinated the Américan national advertising in 1890s reveals.that a variety of brand names were used by-the marketers, These names could be classified into different categories. First, the brands were based én the personal names. of the investor, patent holder, or shopkeeper, for instance, Baker's-Cocoa, Edison Phonograph, Jaeger Underwear. Some products derived ‘their names from the places where they were invented, developed or sold, ¢.g:, Columbia Bicycles, Pitesburg Stogies. Thied, invented scientific names wete usually based on Latin or Greek like calligraphic typewsiter (‘beautiful writing’), ‘Cuticura soap (skin care). Fourth, names were derived from fine sounding English words, These usually indicated ‘seatus’, e.g., Diamond Dyes,.Gold Dust, Regal Shoes. Fifth, there were attificial ‘names like Kodak, Uneeda Biscuits. Finally, descriptive names. were also used like Rambler Bicycle, Slicedded Wheat.‘ Concept of 2 Brand emma BRANDS AND PRODUCTS Often, confusion exists around the concept of product and brand. Are the two same or different? If product is not same as brand, then what distinguishes the product from the brand? The fundamental essence of this debate is to increase marketing effectiveness. Sometimes, confusion leads to faulty decisions, ‘A product is anything thac can be offered to a market to satisly a want or need’ Marketed products include physical goods like salt and pepper, services like banking and insurance, experiences like theme parks, events like shows and exhibitions, persons like political candidates, or organizations like UNESCO. The concept of product is broad, Ie includes anything which is offered for the purposes of satisfying consumer needs or wants. What underlies this broad concept of product is that it should not be viewed narrowly to include physical goods only. A broadened concept allows a person to think along marketing lines, though onie may not be selling physical goods. That is, marketing is applicable to a variety of situations where exchange occurs. Marketers are often trapped in the commodity mentality. The emphasis on the ‘manufactured product leaves them with commodity-like offerings which tend to be’ indistinguishable and undifferentiated. In his classic article ‘Differentiation of Anything’, Levite proposes that “there is no such thing as a commodity. All Ss —_ i il BRAND MANAGEMENT goods and services can be differentiated and usually are,6 The | difirentiation opportunites could be uncovered by exploring ‘har Tels a range that offers differentiation opportunities. | The generic product is something Very basic oF a ‘rudimentary Mancive thing. Ie i an entry ticket to the imatketng playfield, Ie is the product in its naked form, for xample, a pen that just offers writing capability and nothing more. Bue the buyer may ot need merely a.weiting insteument, he Probably expects Something mote Infact, an ofeving is nos a Product unless there i ‘akers for it. Customers expect more thee Benetic value. This leads to the second product level, ie Product must satisfy consumers ‘mininat expectations. There va set of atibuts or features which would mal abuyecconsider ® product. Buyets expect the pen to be Priced right, give trouble. free writing, and be leak-proof, With this level, the consumers’ E Se 8 g Ss “ ei z i & € a z a a i & Zz i z Gatomers become accustomed to what tp expect and what not 5 Grpect. By ofecing more features, benefits on services a marketer Tt ete Pico, thepen sigue gm may offer 2 lifelong guarantee on the pen’ ‘mechanism. Finally, the highest level of product is called potential Product level, Ie refers to augmentation that @ product might undergo in future, That is what remains to be done, it thus: “A brand is @ name, ‘erm, sign, symbol, or design, or a combination of them, intended to identify the goods or services of One seller or group of sellers and to differentiate them from those of competitors.” Thete ate three ‘pects ofthis dfincion, Firstly, it focuses on ‘What’, of the brand, Secondly, it emphasizes on what ‘the brand ‘does. A brand ean be any combination of name, Symbol, logo or rade mark. Brands do fot have fixed lifetimes, | Under the trade mark lw, the user are granted exclusive rights to 6 « < a “0 ian re Concept of Brand ipsam use brand names in perpetuity. The economists’ view. of branding is: “Various brands of a certain article which in fact are almost exactly alike may be sold as different qualities under names and labels, which will induce rich and snobbish buyers to divide themselves from poorer buyers.”” Box 2.2: What a Brand is and What it Does : NeDenold 80 me Golden Arche: is © symbol orsign which is ode Footed [tis the exclusve propery of McDonald Coporation) Combination: A wique at work tht cambines oll element of brand A brand name is used by the marketers because of the roles it can perform.* Ie-identifies the product ot service. This helps consumers to specify, reject or recommend brands. This is how , _stting brands become part and parcel of a consumer’ life. Secondly, brands help in communication, Brands communicate either overtly or subconsciously. For instance, the brand ‘Fair & Lovely’ communicates what the product does. Similarly, a brand like Johnson 8 Johnson is a symbolic of motherly love. Finally, a brand becomes an asset or property which only the owner has the right to use, The brand property is legally protected. All the registered names are the valuable assets of the owners. Coca-Cola brand name > is perhaps the most valuéd asset of Coca-Cola Corporation. » Conventionally, brands were viewed myopically. They were 3 seen to perform identification and differentiation functions, But ‘mere identification may not be sufficient condition for survival in d a tpommfy BRAND MANAGEMENT a competitive marketplace. Fi clearly identified the aucomobiles 4 Limited, but it didn’s saye it from collapsing. At che same time the ‘Premier’ brand distinguished these cars from rest of the competitors like Hindustan Motor's Ambassador, Maruti, and others, Yer the brand went out of the marker. Today; Premier cars are no longer manufactured. What is esentially missing in the conventional brand concept is the consumer. Brands do not ¢ for the sake of ideni mn and differentiation, They exist because of ~ and for ~ customers. The value dimension is key to any kind of brand to be there in the marketplace. Branding must nor be confined to the process of passively assigning a name or symbol to a product. Branding done in this manner may nor be able to life che product onto a higher plane. The product may he equal to brand and brand may be equal to product. Fhe purpose of branding is xo sansform the product. Ir must add value thar consumers cover. Transforming a commodity like product into customer satisfying value added Propositions is the essence of branding. BRAND PERSPECTIVES must make the preduct relevant and meaningful for che target customers. Ie must enhance the product over and above the basic generic level. A product that comes off the assembly line tends to be merely a physical object. Bur what customers look for is total isfiers. As consumers tend to haye both rational and As oF utilicy a musenie is aire bur the outcome of branding is both physical and symbolic, Branding pushes the product percepaual realm by integrating whar ir is and whae into a composite whole in grder to make it more What do customers look for in a markerable entity? The customers look for both functional ar usility based products as well as symbolic satis Reason and emotion are an integral BCOSOCOCOCOCOSCLCOOGGSOOCEROOOOG0R0000D00 Concept of a Grand imme part of human identity. Customers ate seekers of value. They expect the products ot services to make the appropriate value delivery. ‘The customers’ choice behaviour is influenced by five types of values which they tend to satisfy? First, the functional value. 1 is the physical or functional performance of the product or service. Second, social value means the satisfaction that the consumer seeks by association with certain social groups within society. Third, emotional value means the ability of the product or service to satisfy the customer by giving rise to feelings like, joy, love, respect etc. Fourth, epistemic value means the need to know or learn something new. Finally, situational value refers to the ability of the product to satisfy siuational needs. On che whole, a customer has rational, social and emotional dimensions of the self. In order to make a product personally satisfying, the marketer needs to combine the value delivery in such a fashion that the consumer's internal make up gets matched with brands make-up. ‘The product transformation process essentially involves jacketing the physical object with an invisible aura—a layer of image. “What turns a product into a brand is that the physical product is combined with something else — symbols, images, feelings — to’ produce an idea which is more than different from the sum of the parts; The two, product and symbolism, live and grow with and on one-another in a partnership and mutual exchange.” ! The physical and symbolic components together make the brand. “A brand is more than a product: it’s both a physical and a perceptual entity.” The physical aspect of brand is contained in its physical form which includes the product and the packaging, - while the perceptual aspect of brand exists in the psychological space of the consumer. ‘An unbranded product is a commodity. Commedities do not have identities. Take, for example, cea, coffee, sugar or mustard oil, When the consumer thinks of a commodity, his thinking tends to be dominated by ‘thingness’, Her thoughts are focused on the physical produce’s attributes and benefits. For instance, when one confronts a bag of sugar, one’s mind is filled with the thought of sugar granules, the extent of whiteness, the sugar content, and the various applications of the sugar. The generic products sometimes also have latent product mythology, which stems from user 4 was] 6 RAND MANAGEMENT experience, product history, facts and folklore surrounding it, Products having latent product mythology include champagne and perfumes. ‘The aura surrounding these products is not below the level of awareness. Ie is at the top of one’s mind. The symbolic aspect of the brand exists in the perceptual space of the consumer. What happens when we think of, not just coffee, buc of Nescafé? An image immediately arises in our mind, conjured up by the brand's symbolism. “Advertising is the vehicle that allows us to access the consumer's mind, to create a perceptual inventory of imagery, symbols, feelings that come to define the perceptual entity we call a brand.” ® Coke is carbonated water at the physical level. Bue at the brand level it is a symbol of everything America stands for, what Ametica is all about. Marlboro is a plain cigarette at the physical level but at the brand level, it signifies fierce independence, rugged individuality and survival against all odds. Ie is more about the Marlboro man, the smoker, rather than the product itself. Box 2.3: Catapulting the Solarium | BOCSTOOSCCHOGCHOHOOHOGCHLCOSGSCHESOSCRZOSDSOOS0O9 Concept of a Brand ase The brand has gone far beyond the confines of the physical aspects of the product. Rolex is not a watch to its owner. The brand is all about user image, prestige and luxury. Ie is not a time- keeping device. Ic is a device to separate people into Rolex users — a distinct category — and others, A brand is a bundle of utility or reason based value delivery.-Itis also a vehicle to deliver emotion- based psychological satisfaction. A brand provides reasons for customers to buy it, either through product aspects or psychic aspects...or both. The Product: It is a commodity. It is all about attributes and benefits. Figure 2.1 ‘©The container shape achieve valued: difereniinient ihe che , sie wie Tdlaiinyg de gape hate ise it hie sabes Fat i Niche te oxcuptedl Uy comeing Bianids att developing ant iage® ater): For inseanees in de singe category Liki? is positioned! a6 2 Heathines! soxyy wiheveas Dive pein ite ab WE a SAPS i Bak ane quater nsUUNiNS cei.” “Blin! i Well! entteiietied at he ‘oreanin fir Buna’ (liesidbereadl)- itd iss WH ike areentipe’ co © capa! its valle propeaitiin’ ak 2 sinister aatibepiis creat, 3 failed! co ale fF) atte! Deatol wii’ dle ‘anitiseptic “pasion i die : ~ prospects ind TE is ci aiiTeguetTeNe dit niakes' didi followers > distant seasoned: , # Value Perspective ’ ‘Fike valle perspective sees Beane! a a Hlreeribvedt valde’ Stet > Grand! stares witht a: produse A! waive; HSU aeually ie is ABE ; chia diss Fhe product’ i eet by adding values arounid it ‘filed are tlre vieis' of vallits’ dat 2 Bravia’ offers: Muaiteiwital, expressive’ atid ceittval! values! The furictional vallits’ refer 0 3 nomaige! BRAND MANAGEMENT Performance aspects of the brand. That is what it does at the functional level. For instance, a watch keeps time. A bottle of water Aluenches thst, So chese may by the functional sides of a brand like Titan and Bisleri. Functional values do noe offer differentiation, Pethaps, all products in a category offer simily functional values, For instance, HMT also keeps time and Kinley also quenches thirst, The functional side of the brand is amenable (0 quick replication, Sometimes, ic is not only replication but also superior delivery of ciseiner who wants to express status would buy a brand thae would help him achieve the same, Mercedes, Rolex, Cartier, The key idea governing value extension is chae some people are driven by their higher order needs which revolve around aflliation and esteem, The expressive values Provide a rich source 8° right to the core of the consumer’ system of beliefs’. Central Values, at their purest, are embodied in religious, national or Political persuasion.” or instance, in today’ cynical world, the “Pverence associated with brands like Vitgin or Nike or Pepsi makes shem very powerful in the same way as the Brad Pite cule also carries a value which is central to today’s younger generation, \A I | | i Concept of Grand pms + Brand Image Perspective Brands ate represented in the consumer's mind through images, Consumers do not live in an objective and real world. Rather, theit world tends to be subjective and personal. It is the image of the world that mediates between che consumer and the external real world. A brand is not whar it actually is, rather what it is perceived as. Hence, image building is a crucial task for marketers, Ic is the brand image which would either ‘steer toward’ or ‘steer away’ a consumer from a brand. Image perspective lays stress on the symbolism or imagery aspect of a brand, Ie is the imagery over and above the physical product that may make a brand more relevant and meaningful to consumers in certain cases. Brand image building is “The effore to differentiate the brand psychologically i rather than physically.” Brand imagety assumes an important role in the consumer's life because brands perform ‘badge’ or value expressive functions. They define a person, Possessions play an important role in establishing a person's identity. Our possessions move up in the i hierarchy and become part of ourselves, “We are what we have (which) may be the most basic and powerful fact-of consumer behaviour”? Symbols are signs that express something. The symbolic ) interactionists® suggest that people often buy products not for their functional or utility benefits, but rather for their symbolic value What makes Pepsi strike a chord with the young consumers? At the heart of the relationship is symbolism that is consistent with ; consumers’ self-image or desired self. Pepsi is the choice of the new generation because it epitomizes what youthfulness is all about, The brand image building must begin with a thorough ) “understanding of consumers’ psychological self—their thoughts and feclings. The brand must project what target consumers are and what they wane to be in a social setting. This approach must be ’ taken with caution. Symbolism alone may not be sufficient to attract and keep the custome. The brand must also be satisfying functionally. Symbolism alone may make a brand hollow. * Added Value Perspective This perspective’s thrust is on the value added by the brand in making the product more satisfying. “The difference becween a brand and a commodity can be summed up in the phrase ‘added values’. A brand is more than the sum of its component parts. Ie d 1 g Kame) BAND MANAGEMENT embodies, for the purchaser or user additional acetibites which, whilst thiey might be considered by sorte to be ‘intangible’, ate still very real.” Thus a brand is a commodity augmented by | added values making it more acceptable to consumers. These added values help match the offerings with what the consumer wants | and desires. The brand’s idea in this: approach is not confined to physical goods only. A brand could bea person of a place. | Thhe relevance of a brand could be explored by doing a blind comparison cest. Por instanice, iv a blind’ taste vest, Coke was preferred by 44 per cen of thie resporideries. Bue witli die revealed brands; chis percentage wert up to 65 per cent.” This itierease in’ prefererice could be explaitied by che value addition: chat Coke's label brought to che product, diereby making it the choice of a | sicater number of people, The brand aroused certain’ added. values in the respondent's mind. This phetiorienon is also experienced in industrial markets. The cemetit supplied as a geietic product to a contractor is not the satie as i€ comes in bags named ‘Raymonds’ of ACC’, The brane nitive adds value to the getveric product, niaking. it more desirable for thie buyet. The Brarid! in this: case: brings a host of assurarices int the forit’ of veliabi consistent quality, confidetice arid. supports ° °8 e °e ° © Perceptual Appeal Perspective e This perspective: views: a Brand’ from the: staitdpoint of che appeal ° it makes ro prospects. Brands like: Aspirin and De Beers differ | Axpicin’s- appeal is more rational, whereas: Der Beers: appeals tothe 9) emotions. Thus # Grand rity: be rational, setisory, emotional oF a e | combittatior thereof depending: uport thie product cacegory atid °} | :| 8 I eo) ° oO e 8 8 target customers. It is proposed! dat: ‘thiete ate elite sorts: of appeals they are all: initetrelated: and: cack brarid: has a different blend of te three—an appeal. to the seiises, ait appeal to the reason, and appeal to tlie etiiotionis.” 2 This: approacl views cli: buyer front thie conisuitier beliaviour perspective: The hurniait psychological stake up could be visualized 06 be consisting of setises; eiitoriorial’ satisfactions anid utilitarian oF economic values: Deperiditig: upori-the: consuiiier; a brand could be developed: combining: thiese appeals in a judicious miatitier: For instance, 2 refrigeracor miarufacturer may develop an ccondhiy or \6 Concept of Brand mamma functional brand for price sensitive or rationally oriented customers, while the other brand could be developed around the concept of ‘pleasure of washing clothes’, delivering sensory pleasures. Gillette focuses on the cheme ‘the best man can get’ an appeal emotional in nature ~ while Devtol appeals to reason with its ‘antiseptic properties to the shaving cream buyer. This approach is helpful in designing brands precisely in accordance with the buyers’ mental states which enhance the acceptability of a brand, ‘The focus here is om the brand's anatomy and appeal. + Personality Perspective Personality, once the exclusive preserve of psychologists, has attracted a lot of attention from marketers. Marketers were quick to spot the role of personality in brand development. Personality can be defined as “those inner psychological characteristics that both determine and reflect how a Person responds to his or her ' cavironment.” * The focus of this conceptualization of personality is on inner characteristics or traits that distinguish one person from the other, The personality of an individual is likely to influence his product and brand choices. Since the 1980s, marketers employed the concept of persotiality in brand development. Brands are imbued with personalities. Consumers perceive personality waits in brands. The brands may be perceived as “masculine”, “sophisticated”, “dependable” or “Friendly”, Ie is visualization of brand! as a person. For instance, marketers of Mr Coffee wanted to personify their 1 brand as ‘practical inventor’. The advertising agency of elie brand even: created 2 biographical profile of Mr Coffee: “Bort Seprember 18, 1988, in Chagrin Falls, Ohio, eldese of three children: (two girls, one boy) of Harold and Betty Coffee, second generation ) immigrants from France (name changed from De Couvier at Ellis Island). * The brand personality is ‘a shorthand way of describing the nature and quality of the consumer's response to a brand,’ a ‘The’ fundamental assumption governing the personality perspective: ) is that 4 brand could: be made to have personality cltaracteristics: which would atceace customers in the target market: Cole and Pepsi differ in their brand personalities in a major way. ‘The personification of Pepsi brand would reveal traits like “young” “anti- \? ee Mmmm 6 RAND MANAGEMENT establishment” “cool”, and “extrovert”, whereas Coke's personality would not be the same as Pepsi’. Marketers often use celebrities to create brand personality, Hyundai Santto is promoted by Shah Rukh Khan. Accordingly, certain traits of the star would get associated with Santro car. ANATOMY OF A BRAND Though the brand perspectives discussed above look at a brand from different angles, they share something in common: the brand creates value differentiation. On the competitive front, the brand achieves distinction. On the consumer front, the brand adds value. “A brand is a product, then, one that adds other dimensions to differentiate it in some way from the other products designed to satisfy the same need.” ” Another view on brand suggests that ‘a brand is a product or service made distinctive by its positioning relative to competition, and by its personality in the context of the target market.”** In another thinker’s opinion, the brand is “a complex thing. Not only is it the actual product, but it is also the lunique property of a specific owner and has been developed over time so as to embrace a set of values and ateributes (both tangible and intangible) which meaningfully arid appropriately differentiate products which otherwise are very similar.” A brand tends to hhave a number of parts, These parts are brought together to form a ‘whole! which is greater than the sum of its pats. The branding is all about assembling these parts to form a cohesive whole in the form of a ‘gestalt’. It is through this ‘whole’ that a liking is created in the customer's mind for the brand. A brand is a modifier of the product in the consumer's mind. One way of looking at the brand is to look at its elements. A brand has both product and perceptual components. The product component of a brand refers to the physical product. A produce consists of a bundle of attributes which provides certain benefits tw the consumer, while the perceptual element of the brand refers to an ‘invisible’ halo surrounding the brand. It comes in the form of image, personality, and positioning. It is the brand symbolism. The product component in a brand of sunglasses; eg., Ray- Ban is comprised of specific product attributes. These are directly derived from the manufacturing process...Ray-Ban sunglasses have SSSSCSOSEGCOEKX2009R000 '@CeOCCCeCCCEOGOGE Concept ofa Brand emma attributes like ultraviolet light filtering lenses’, besides being lightweight, expensive, distinctively designed, made from strong materials, and scratch proof. These physical attributes provide certain benefits to the consumer, For instance, the ulera-violer lenses save the eyes from exposure to harmful UV rays, Strong materials are used to makes the product last longer. The benefits’ are the “reason why” a consumer should buy a product. The product attributes and their benefits often become key selling propositions to attract customers. For instance, National Air-conditioner’s ‘unique rotary compressor saves money’, or ‘LG's unique door cooling system preserves nutrition of food in the refrigerator’, The major difficulty with product components is that in the competitive markets, it is difficult to create and maintain uniqueness in the products. Due to similarity of production technology, a widespread parity sets in, leading to commoditization. ‘The perceptual components of a brand are intangibles that are associated with the brand. These intangible associations are powerful drivers of differentiation, In fact, most of the top world brands are characterized by strong perceptual components, which include the following: 4 User Imagery: Many brands portray their ‘typical user’ both demographically and psychographically. The user image signals self-image, values and lifestyle of the intended target cistomer. Raymond brand of suitings atid shirtings convey i a very distinct user imagery in their communications (‘The complete man’). Similarly, Elle 18's brand is directed at young girls, not influenced by the environment or social setting, (Be yourself’), User imagery is critical because it helps a > brand to connect with the customér. +. Emotional/Psychological Benefits: Brands also transform the user experience. Brands create satisfying emotional states. > ‘The experience with a product and brand is generally not the same. Through communications, marketers associate certain feelings and emotions with the brand in the > consumer's mind. Maggi noodles portray the joy of giving. , ‘Johnson & Johnson brand is the epicorte of ‘love and care’. ) Go. mmm 820 MANAGEMENT The following tagline suggest how the brand is made a vehicle to deliver emotional and psychological benefits: ~ Power dressing’, ‘underline your presence’, ‘upper crest’, = Josh machine’ ~ ‘Quite frankly, American Express is not for everyone’ ~ For the man who doesn't have to try too hard’ Your Mood, Not Style: " Box 2.4: Now Ride on 8o St aa Oooo S990900 S9o°0 eo S©SSeC0 0060 ° © Concept of a rand imams + Brand Personality: As discussed earlier, brand personalicy is \ the visualization of brand in human terms, i.c.. brand personification. For instance, the sespondents are asked if ‘Nike’ were a person, wha would he or she be like? The description that would follow generally revolves around demographic and psychographic traits of the person. Imbuing ‘a brand with 2 personalicy consistent with the carger customers helps strike 2 relationship with them. Ir humanizes a product. Brand Image: Brand image is a broader rerm than brand personality. It is how a brand is! perceived by the customers in its ‘corality’, Image encompasses both product and perceptual components. It is everything that is associated with a brand in a prospect's perception. Another way a brand would be seen is as consisting of vo dimensions: the functional dimension and emotional or symbolic dimension. This scheme resembles the one discussed above where a brand is seen to be having product and perceptual components. ‘The functional dimension is the product's artributes and benefits or the tangible properties while the symbolic dimensions are the intangible aspects of the brand. A markerer can combine these two elements ko create the ‘right’ appeal for customers; In consumer bchavious, che Fational and emotional perspectives are two models that explain how eonsumers make purchase decisions. The rational man is a utility maximizer, He approaches decision-making with a reason or logical orlentation. This mould is characterized by extensive objective evaluation, while the emotional view assumes consumer purchase decision t0 be driven by entiotions like fear, joys fantasy, ete: in such eases, consumer purchases are nor driven by an objective scheme of things. The custamer does not base his or her decisions on objective information and evaluation, Many of the: purchases, therefore, are driven by impylses and whims, Reasons and emotions are two sides of a consumer's mental make up. This idea is consistent with ‘hemispheral lateralization oF the split-brain theory.’ The left brain specializes in cognitive activities, like reading, speaking and attributions while the right brain specializes in non-verbal, pictorial and holistic information.” 2 mmm] 6RAWD MANAGEMENT The left brain is rational, active and realistic, ‘The right brain is emotional, In different buying situations, the customer's involvement with the left and right brain would differ. That is, under some situations, consumer buying would be dominated by lefe brain activity while in others the right brain may be more active. Successful branding, therefore, depends on combining the rational and emotionil components of a brand in a manner that it becomes consistent with the consumer's frame of mind. For instance, buying of a pain-killer would be by and large a rational, lefe brain driven activity. What implications does it have for marketérs'of Asprin, Aspro, Anacin? Here, the brand should be functions driven. That is, the brand essence should revolve around SSS9R9 009899009 ‘reasons’ demonstrating product superiority in terms of its ingredients and efficiency of its pain relieving process (e.g., the product “dissolves faster in water” and therefore, “relieves pain faster.” Box 2.5: The Dream Machines Everyone Wants to Possess »ESCGCOOCOSSCCOSGOOAOECDOE Concept of Brand ame In circumstances where consumer buying is emotions driven, the brand must accordingly focus on symbolic or emotional aspects. The consumer may be in the right brain states while buying cards, chocolates, toys for d compe ren ot apparel. The brands g in this category therefore, néed to capture the heart of the customer. The brand must be emotions dominated in order to be consistent with the consumer's state of mind, Certain brands have very nicely disassociated from their product category by pushing the brand onto 2 non-rational plane. These include Monit Blanc pens, Rolex watches, Cartier jewelry, Louis Vuieton bags a3 en | Figure 2.2 | MANAGEMENT. | | e2o0o000 ‘The Anatomy of a Brand he Bond Tes : oO © © Simbole Brod Furctondand Sybil rnd Fron ond Table 2.1 Functional ‘Syinbolic [ Mixed Hero Honda Raymond Johnson Ties Types of Brand ‘Fit, Shut t, Forget_| ‘The Complete Man’ | ‘Not Just Tiles, Lifestyles’ tt Disprin Classic Opel Corsa ‘Quick Roliet From | “Discover A ‘Achtung, Baby’ Pain! Passion z Surf Excel Ele 18 Hero Honda Passion ‘Surf Excel Hai Nat | ‘Be Yourself ‘When Style Matters’ Nima Louis Philippe Lt 5 ‘Dood Jaisi Safed’ _| ‘Upper Crest’ ‘The Freshness Soap Captain Cook Carbon Dove ‘Free Flow Salt ‘Very Provocative’ | “With ¥é Moisturising Cream’ g4 Contd... rPec@eoeeoceoonooee@oooocoeeosoooeosooscoeo0909o a Concept of « Brand em Bajaj Aspire Lacoste Nescafe 110% Bike’ ‘Bo What You Are’ | ‘The Taste That Gets You Started Cartier Cadbury Dairy Mik ‘Opulence’ chocolate “Khane Walon Ko Khane...? Dettol Thums Up Woodland 100% Bath’ ‘Have You Grown | ‘Leather That Weathers’ 5 Up To Thums Up Yet ‘Complan ‘American Express | Rexona Doo “The Complete ‘Quite Frankly, an~ | It Keeps Working Planned Food’ ‘American Express Card Is Not For Everyone’ (Eartier) Panasonic Wills Sport Honda Accord ‘First & Fast Telecom | ‘Be A Sport’ ‘Style And Substance’ Solutions’ Kelvinator Nike Alto ‘The Coolest One’ | ‘Just Do It’ ‘The Hottest Little Car In Town’ Moov Alen Solly BMW ‘Ah Se Aaha Tak’ | Friday Dressing Ultimate Driving Machine Vim Bar Boss ‘Bas Thoda Sa Vim | Hugo Boss Bar Indica ‘Mont Blane ‘More Car Per Car | Art Of Writing Goodknight Pulsar— ‘definitely Goodknight Expert | mal WHAT IS A BRAND? A product is a physical entity that lives in the real world. A brand ~ “isa perceptual entity that lives in the consumer's mind. Given the importance that is attached to bonds and branding nowadays, the question which immediately springs to mind is: why is ic necessary to transform a physical entity-into a perceptual entity? The answer to this lies in the failure of products in genetating competitive superiority. Brands are drivers of competitive edge. ‘A successful brand is a namé, symbol, design or some combination which identifies the ‘product’ of a particular. organization as having a sustainable diferent advancge.™ mmm) oRAND MANAGEMENT When we say that physical entities or products fail in generating competitive superiority, what does it imply? A produce entitles a marketer to enter the marketplace. Tt is the ticket to market participation. But it does not guarantee success. Simply put, market participation is not equal to marketing success, which means actualization of potential exchange, i.e., when a buyer voluntarily’ buys a brand, rejecting the others. Marketing in a competitive arena implies rejection or elimination. The consumer must reject competitive offerings. This is the only way to stay alive in the market these days. Shaping or bending customer preferences in one’s favour and against one’s rivals is critical to success. So what is branding all about? Branding is everything a marketer does to the offer so that the customer discriminates a brand in its favour. Building up of this prejudice in the consumer's mind is the ultimate aim of branding. But one thing to be kept in mind while branding is, that this process is directed at customer value creation. It is winning through value. Customers do not perceive the world as it is. Their internal mental image of the-world, at times, differs from the external physical world. The reality for an individual is perceived. “The objective reality of a produce matters little; what matters is the customer's perception of a product or a brand.” Perception is the process by which the customers make sense out of world. Customers translate the external physical world into internal subjective world. “A brand isa symbol, a word, an object, and a concept — all at one and the same time.” A brand is a symbol. What is a symbol? ‘A symbol is a sign which stands for something in a prospect's mind. It carries @ meaning behind it, Symbols work by stimulating the cognitive process. The consumer's perceptual process is nothing but making sense out of those symbols present all around/him. A brand's figurative ‘aspects like packaging, colours, logos, emblems, designs, etc., are signs thac che marketers use to communicate their intentions to the customers. Symbolism is, in fact the practice of conveying notions, ideas and concepts with the help of symbols. Why do brands have different colour schemes? It’s because the marketers try to communicate different messages to their target customers. GOCECCHOCOCEOFOFGCODS 900200999000) o ° cc) Oo oO Concept of s Brand Ramen ‘The cigarette brand Charms’ pack has a unique indigo blue print, like faded jeans fabric. The package design was intended to strike a chord with young customers who identified with ‘freedom’, because jeans symbolized freedom. Marketers use ‘slender, tall’ bottles to communicate feminine qualities. In fact, colours are not really colour, They communicate a variety of meanings in a very subtle fashion, For instance, colours like red, yellow, and. orange which have longest wavelengths symbolize heat, while colours with short wavelengths like blue, green and violent are associated with cold. i & ‘What is Titan? Titan is a word that one uses to connote a brand. So is Omega. Omega is also a word. The words are ‘titles’ which are given to. brands. A word is a signifier chat marketers 1 employ to facilitate communication about brands. Imagine a situation where one is assigned the task of building brands without using a brand name. It would be a state of utter confusion. The word helps in identification and communication. More than identification, sometimes the word also acts as a symbol. A brand is also an object, a thing. An object product or service is what is transformed by a branding exercise. An object distinguishes itself from others in the category. De Beers is diamond while Gautier is i furniture. Finally, brand is an idea or a concept. A brand is important because of its unique ‘essence’. The concept of a brand leaves its own mark - a signature - that imparts its own meaning. It is this concept which is generally the force behind brand creation. A brand without its‘own unique ' signature would just not be able to break away fom commodity status. It may achieve hollow differentiation for some time, but ultimately it would slide*back into being just a commodity. A computer is a computer. But what distinguishes Apple from the ' rest? Ic is its brand concept - the user friendliness. The concept of i signature is more visible in the fashion industry. It explains how do ‘signature’ of various designers - DKNY, Armani, or India's Rayi Bajaj, Suneet Varma - signify a different concept or idea. What is an athletic shoe doing with the ‘swoosh' logo on it? "Swoosh is « concept - ie is all about winning and action. It is this concept that drives the latinch of high performance products by Nike like "Nike Air’. + resem) GRAND MANAGEMENT .6: Brand and ‘Box “Emotional Hijacking’: peooceooeceococeooooeoe ooo o0os7090G90909509 ce There was a time when marketers stressed too much on brand name; in fact, branding essentially boiled down to selecting the right name for dn existing or newly developed product. But a brand is much ‘more then the brand name. The name is only @ signifier of the intentions of the brand manager, for a brand is a genetic program.’® Ic is both the memory and the future for its products. Its memory provides direction. Te defines the legitimate territory of the brand, i.e.; what direction the brand can take in the future, what all products or services would be created within the realm of the brand, Products are also not the brand, They are outward manifestations of the brand. Brands endure; products come and go with time. Reducing a brand to a product greatly diininishes the essence of the whole marketing process. It is myopic. * Te would lock the marketer to products which. by: definition tend to have limited life spans. A Brand, on the other hand, is a mission which is connected with the customers and the markets. ‘What is Lux? Is it a soap? The interpretation of it as a soap entirely misses the point. If ic is a soap, how is it different from others in the category? What does Lux manifest? Lux stands for Beauty. The brand reveals hidden intentions. Without a compelling marketing mission, a biand probably cannot take birth. ‘A Lax customer buys it for its promised delivery of beauty. The Lux brand seeks to satisfy the beauty’aspirations of a select target Ruma) 6 RAND MANAGEMENT group. Itis a loud and clear promise of what it has to offer. Soap is only one way of delivering beauty. A number of products would be discovered within the legitimate territory of Lux. When a brand is defined as a name or symbol or sign, it is open to interpretation at two levels. To the naive, branding is limited to coining and assigning creative names, symbols and signs to products, But branding in true sense is the arc and science of creating a perceptual entity that resides in che consumer's mind. ‘The sign, symbol anid name is only a ‘tag’ or ‘signifier’ that resides in the perception of consumers. This signifier is actually the brand. Brand in this sense refers to the knowledge structure of network of association created by the marketer, It is this envelope of associations surrounding a product that determines the consumer's response to the marketing efforts. For instance, the associative network that a name like ‘Rado’ or ‘Maxima’ would bring to a wrisowatch would differ, and hence create variations in customer response. The type of associative network to be developed is dictated by the brand strategy. But it is this associative network chat marketers ate discovering to be the crucial determinant-of success. Through this network, a differentiating dimension is added. to the physical product by transforming ic into something perceptual. This differentiating dimension can take functional, emotional (symbolic) or @ combined form to add value. Keller articulated the concept of brand knowledge as having two dimensions: brand awareness and brand image. Later, Candon® adapted the brand knowledge dimensions to create a pyramidical framework. The brand knowledge pyramid seeks to explain how lower level elements become a foundation for the higher order elements, ultimately leading to brand attachment. There are ovo ways in which a/brand can create customer attachment! rational and emotional. The rational and emotional evaluations of the brand by the customer determiine the customer's attachment response, Whatever is the route a brand may choose to take, the ultimate purpose of branding is co win customer loyalty and attachment. 9 ° ° a 9 8 ° ° ° 9 ° ° 0 o ° ° ,o ° 9 ° ° 9 e e ° Q e ° ° ° ° © o 0 ae Concept of «Brand femmes ox 2.7; The Brand Knowl “B FUNCTIONAL IMAGE AND EMOTIONAL IMAGE AND. BENEFITS BENEFITS Physique (desion, quay, Who, when, how, whore used, Bliabilty, serves, price Personality, history BRAND AWARENESS DEPTH & BREADTH Depth (unaided real, ded recall, or ‘ocogntion ‘and broad (wher?) Brand awareness serves as the foundation for brand knowledge. The next level is brand image. Brand image refers to the association ‘that a brand has in a prospect's mind. These associations may be functional (Maruti 800 takes the functional route to building a utility oriented image promising’ economy, service, easy maintenance) and emotional (Chevrolet Optra ‘places the brand in an emotional context focusing on man-women relationship) Branding success requires creation of strong, favorable aid unique associations. The brand associations then lead to rational ‘or emotional evaluations. How: positive and accessible these evaluations are, in turn become bases of loyaley generation. , Rammell) oR AND MANAGEMENT WHY BRANDS MAKE SENSE? The marketing world is filled wich ewo types of brands: those thac win, and others chat are left behind by the winners. Time and again, various publications announce lists of top performing brands. The ones that feature in these lists rejoice, while the ones that do not look for formulae to transform. The winning brands do follow some kind of blueprint to achieve extraordinary feats in the marketplace. These brands strike a chord with customers and, at the same time, are differentiated from the competition. The competition has to be warded off or else a brand has a danger of degenerating into a commodity. Marketing nowadays is stuck in two opposing bi-polar realities. On the one hand, most product categories are experiencing a brand explosion. More and more new brands are being added to the supermarket shelves. But what makes these newcomers faceless entities — just a part of the crowd — is their lack of differentiation. They are simply carbon copies of each other. This ‘interchangeability’ is often the cause of price wars and frequent failures, In the absence of any’ real differentiation, price is sought to provide differentiation. The other side of this miserable reality is quite to che contrary. Some brands know not only how to stay alive but how to win in the midst of pervasive failures. The winners amass huge valuations running into billions of dollars. Some of the names included in this lise are Coke, Marlboro, Intel, Microsoft, and McDonald's. The core question is: what makes these winners different from the rest? Whar is hidden behind the simple name that allows them to steer through the chaotic. and congested realicy of the marketplace? In their bid to discover what makes a winning brand different, Bouchholz and Wordemann® studied over a thousand wining brands over a period of six years. Each of the brands covered in the study ranked in the top fifth percentile of its industry in terms of geoweh. ‘The study found that chese winning brands follow ‘growth codes’. That means, they adhere to specific laws for pee@oooeoeooecoecooovo ooo eoseo929D9990909000 Concept ofa 6rand mam activating a purchase motive in a customer's mind. Winners connect with customers in the following ways + Benefits and Promises Brands provide customers a compelling reason to buy. This ‘reason to-buy’ comes in the form of benefits that are promised by the brand. Almost all brands in a category make promises and offer benefits, bu what winning brands do is that their benefits and promises tend to be unique. For instance, 4 — Pepsodent offers unique benefits of ‘keeps working even after brushing’ 4 - Vatika hair oil provides benefits of hair protection against the dust and pollution : 4. Maggi noodles offer a unique benefit—a quick, tasty snack 2 of home-made noodles The unique benefits or quality promised by a brand can be of two types: objective and subjective, The objective superiority a brand can draw from its objectively verifiable elements like price, ingredients, parts or technology. For instance, a car may offer larger measured space ot good acceleration. Subjective quality, on the other hand, refers to the perception of superiority or excellence based on some abstraction in a consumer's mind. For instance, Swiss watches are perceived to be of better quality; however, they may actually be inferior to Japanese watches in terms of technology » of functionality. «> Norms and Values Consumer behavior is subtly driven by cultural values and norms. Their influence is taken for granted and is rarely felt. Ie is only when exceptions occur that norms and values come to the fore, eg, simple rituals of morning beverage or personal hygiene. In India, personal hygiene is culturally defined. For instance, one is expected to take a bath every morning, Consumer buying behavior is profoundly guided and shaped by such values and norms. Consumers: prefer those brands that do not violate the cultural, mamma] 6kAND MANAGEMENT social, ethical or moral norms of a society. They tend to avoid brands that create value conflicts. + Credit cards industry in India faced a tough challenge in the initial years of marketing, since ‘etedit taking’ was culturally perceived as borrowing, which is seen as involving sactifice of social esteem. Kellogg's faced rough challenges in marketing corn flakes as morning breakfast, since the concept of breakfast is regionally defined and deeply ingrained. “The appeal of Close Up toothpaste when it was launched in India was found to be too bold for a housewife to even ask for the brand from the kirand store. Celebrating Valentine's Day has’ attracted violent protests in some Indian cities, led by some of the political groups: it was projected as a violation of India's ethos and culture. Expressing love openly is taboo. Brands that create value and norms conflict for the customers are shunned; the ones that solve or resolve inner conflicts are preferred. Brands can build great pulling power in four ways: + First, by rediing or eliminating guilt (brand should offer opportunity to reduce or eliminate guile that the customer may feel towards others. A brand like Sangini provides an opportunity to a person to compensate for the lack of time spent with the partner by gifting diamond jewellery) Second, a brand can challenge and assuage a customer's hure pride. Pride ~ self esteem — is hurt when a customer dots not wear clean clothes (‘Bhala uski kameee meri kameez se safed kaise?) ot smells of body odor (Rexona deodorant) or has dandruff (Head & Shoulders). In following this strategy, a brand does offer a strong functional benefit, but what is more important here is that personal-pride supersedes it Third, a brand can exploic the inconsistency in consumer behavior. For instance ‘Krack’ cream highlights the i cosmo PeSECeGoeoeoeovscooocecooocea cocoa ea oo 30900 Concept of 2 rand ema inconsistency between a woman's queenly appearance and her cracked heel’. One of the insurance companies is * promoting life insyirance by making drawing attention co inconsistency that’a costly car is insured but the priceless life of the owner is not. + Fourth, some braid or product belong consumption area surrounding taboos in market. For instance birch control devices, psychiatrist help, and erotica products. A brand can achieve success by overturning taboos. Perceptions and programs: Winning brands owe theit success to their perception as a logical choice in a certain frame of motivation, The brand must be clearly linked to a compelling purchase motive. How the brand is perceived is important in this context. An old, outdated Morris car may be perceived as nothing more than junk or as a collector's item, depending upon the perception. Perception impécts the bottom-line. Earlier, Cadbury's chocolate was narrowly perceived as an indulgence for kids, and its market and sales were limited. But the company managed to expand its sales by changing brands perceptions to initially ‘adule indulgence’ and later as something to ‘celebrate’ the day-to-day happy occasions by giving ic equality with the traditional. mithai. Many great brands managed co achieve phenomenal success by reprogramming the perceptions in the customers’ mind, Titan ‘\ carved out a huge marker by changing customer perceptions of |\ watches to something more than a mere time-keeping device. The following paths for reprogramming, the perceptions could be used: 4 First, be a big fish in a small pond by markirig the market territory for the brand, Instead of launching brand in a big established market, i is better to focus on a smaller teticory and become the leader. For instance, instead of focusing on alll kinds of aches and pains, Moov marked its territory as only ‘backaches and pains’, as did or Johnson & Johnson's ‘no tears’ mild shampoo for kids. 4 Second, instead of competing in’ its original produce market, a brand may cut into an altogether different market, ie., the brand is made co migrate from its original to a completely

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