PRODUCT &

BRAND MANAGEMENT
Prof. Nitin Tabib | nitintabib@gmail.com | 9820006561
 SYLLABUS – SESSION I
• Introduction to Product Management, PLC
• Product Plan: Product Concepts: Meaning of Product
• Three Dimensions of Product Concept
• Designing Products
• Classification of New Product Opportunities
• Product life Cycle (PLC)
• Various Stages of Product Life Cycle; Managing Product Life Cycle
• New Product Development
• Total Product Market Strategies
• Branding & Marketing Program
• Brand Strategy & Policy
• Packaging; Labeling; Product Warranty; Service Facilities
PRODUCT &
BRAND MANAGEMENT
 WHAT IS A PRODUCT?
• A product is any offering by a company to a market that serves to satisfy
customer needs and wants
• It can be an object, service, idea, etc.
THREE DIMENSIONS OF PRODUCT CONCEPT

Managerial Dimension

Consumer Dimension

Social Dimension
THREE DIMENSIONS OF PRODUCT CONCEPT
• Managerial Dimension
• Covers the core specifications or physical attributes, related service, brand,
package, product life-cycle, and product planning and development
• Product offering must balance with consumer needs and desires
• Assure normal rate of return on investment and continuous growth of the
enterprise
THREE DIMENSIONS OF PRODUCT CONCEPT
• Consumer Dimension
• People buy things not only for what they can do, but also for what they mean
• A product conveys a message indicating a bundle of expectations to a buyer
• Consumer’s perception of a product is critical to its success or failure
• Repeat orders are possible only if post-purchase experience is favorable
• A relevant product is one that is perceived by the consumer as per intentions of
the marketer
THREE DIMENSIONS OF PRODUCT CONCEPT
• Social Dimension
• To the society salutary products and desirable products are always welcome as
they fulfill the expectations of social welfare and social interests. Salutary
products yield long-run advantages but may not have immediate appeal
• Desirable products offer both benefits, immediate satisfaction and long-run
consumer welfare. Society dislikes the production of merely pleasing products
which only give immediate satisfaction but which sacrifice social interests in the
long-run
 NEW PRODUCT DEVELOPMENT
• Most new product development is an improvement on existing products
• Less than 10% of new products are totally new concepts
 SUCCESS RATE OF NEW PRODUCTS
• ‘You have to kiss a lot of frogs to find a prince” - less than 5% success rate of
new products
• Rapid Product obsolescence with improvements in technology
• Shorter PLCs
 PRODUCT DEVELOPMENT STAGES

Idea generation

Idea screening

Concept development and testing

Concept testing

Conjoint analysis – to find out the best valued attributes by consumers

 BUSINESS ANALYSIS
• The most customer appealing offer is not always the most profitable to make
• Estimate on costs, sales volumes, pricing and profit levels are made to find
out the optimal price – volume mix
• Breakeven and paybacks
• Discounted cash flow projections
 MARKET TESTING
• Test markets
• Test periods
• What information to gather?
• What action to take?
 COMMERCIALIZATION
• When? (Timing)
• Where? (Which geographical markets)
• To whom? (Target markets)
• How? (Introductory Marketing strategy)
 PRODUCT LEVELS
• Customer value hierarchy
• Core benefit
• Basic product
• Expected product
• Augmented product
• Potential product
 CUSTOMER DELIGHT
• When you exceed customer expectations
 PRODUCT HIERARCHY
• Need
• Product family
• Product class
• Product Line
• Product type
• Brand
• Item
 PRODUCT CLASSIFICATION
• Durable
• Non – durable
• Services
 CONSUMER GOODS CLASSIFICATION

Convenience Shopping Specialty Unsought

goods goods goods goods
• Petrol / • Mostly • Designer • Funeral
diesel; durable wear; luxury Services,
newspaper; products like cars; reference
groceries electronic professional books etc.
etc. appliances; equipment
dresses; etc.
furniture etc.
 INDUSTRIAL GOODS CLASSIFICATION

Materials and Supplies and

Capital items
Parts business services
• raw materials • Buildings;
• manufactured machines;
materials and equipment;
parts furniture and
fixtures etc.
 PRODUCT MIX

Width Length Depth Consistency

•How many •Number of •Number of •How

different items in the variants closely the
product product offered in product
lines mix a product lines are
line related in
usage

The assortment of products that a company offers to a market

 PRODUCT LINE DECISIONS
• Product rationalization
• Market rationalization
• Product line length
• too long – when profits increase by dropping a product in the line
• too short – when profits increase by adding products to the product line
• Line pruning – capacity restrictions to decide
 BRAND

A name becomes a brand when consumers

associate it with a set of tangible and intangible
benefits that they obtain from the product or service

It is the seller’s promise to deliver the same bundle of

benefits / services consistently to buyers
 BRAND EQUITY
• When a commodity becomes a brand, it is said to have equity
• The premium a brand can command in the market
• The difference between the perceived value and intrinsic value
 LEVELS OF MEANING

Attributes Benefits Values

Culture Personality Users

 BRAND POWER
• Customer will change brands for price reasons
• Customer is satisfied - No reason to change
• Customer is satisfied and would take pains to get the brand
• Customer values the brand and sees it as a friend
• Customer is devoted to the brand
 BRAND EQUITY – COMPETITIVE
ADVANTAGES
• Reduced marketing costs
• Trade leverage
• Can charge a higher price
• Can easily launch brand extensions
• Can take some price competition
 MANAGING BRAND EQUITY
• Brand Equity needs to be nourished and replenished. We must not flog the
brand for equity to be diluted or dissipated
• Store brands
 ADVANTAGES OF BRANDING
• Easy for the seller to track down problems and process orders
• Provide legal protection of unique product features
• Branding gives an opportunity to attract loyal and profitable set of
customers
• It helps to give a product category at different segments, having separate
bundle of benefits
• It helps build corporate image
• It minimises harm to company reputation if the brand fails
 BRAND PARITY
• Consumers buy from a set of acceptable/ preferred brands
 UMBRELLA BRAND
• Products from different categories under one brand
• Dangerous to the brand if the principal brand fails
• Sometimes the company name is prefixed to the brand. In such cases the
company name gives it legitimacy. The product name individualises it.
 NAMING THE BRAND
• Product benefits
• Product qualities
• Easy to pronounce
• Should be distinctive
• Should not have poor meanings in other languages and countries
 BRAND STRATEGY
• Line extension – existing brand name extended to new sizes in the existing
product category
• Brand extension – brand name extended to new product categories
• Multibrands – new brands in the same product category
• New brands – new product in a different product category
• Cobrands – brands bearing two or more well known brand names
 BRAND REPOSITIONING
• This may be required after a few years to face new competition and
changing customer preferences
 PACKAGING
• Includes the activities of designing and producing the container for a
product
• Packaging is done at three levels
• Primary
• Secondary
• Shipping
 PACKAGING AS A MARKETING TOOL
• Self-service
• Consumer affluence
• Company and brand image
• Innovation
 DESIGNING PACKAGING
• Packaging concepts
• Technical specifications
• Engineering tests
• Visual tests
• Dealer tests
• Consumer tests
• Packaging innovations
• Environmental considerations
 LABELS
• Identification
• Grade classification
• Description of product
• Manufacturer identity
• Date of mfg., batch no.
• Instructions for use
• Promotion
 LABELS AS A MARKETING TOOL
• Labels need to change with time or packaging changes to give it a
contemporary and fresh look
THE PRODUCT LIFE-CYCLE CONCEPT
 HOW STAGES OF THE PRODUCT LIFE CYCLE
Stage of the product life cycle
RELATE TOIntroduction
A FIRM’S MARKETING OBJECTIVES

Sales revenue
Growth Maturity Decline

AND MARKETING MIX ACTIONS

or profit
Total industry
sales revenue

+ Total industry profit

0
–
Marketing Gain Stress Maintain Harvesting,
objective Awareness differentiatio brand loyalty deletion
n
Competition None Growing Many Reduced

Product One More versions Full Best sellers

product line
Price Skimming or Gain share, Defend share, Stay profitable
penetration deal profit

Inform, Stress Reminder Minimal

Promotion educate competitive oriented promotion
differences
Place Limited More outlets Maximum Fewer outlets
(distribution) outlets
PRODUCT LIFE CYCLE FOR THE STAND ALONE
FAX MACHINE FOR BUSINESS USE: 1970-1999
$7.0

6.0

5.0
Sales ($billion)

4.0

3.0

2.0

1.0

1970 1975 1980 1982 1984 1986 1988 1990 1992 1994 1996 1997 1998 1999
 WILL THE INTERNET BURY THE FAMILIAR FAX?
• Technical substitution often causes the decline stage in the PLC
• Will the Internet and E-mail replace FAX machines?
 SOME DIMENSIONS OF THE PLC - LENGTH
• Consumer products have shorter PLCs than industrial products
• Mass communication informs consumers faster and shortens PLCs
• Products affected by technological change tend to have shorter PLCs
 SOME DIMENSIONS OF THE PLC - SHAPE
A. High learning product B. Low learning product

• High learning product

• Low learning product
• Fashion product
• Fad product
Time Time
C. Fashion product D. Fad product

Time Time
PRODUCT LIFE CYCLE FOR WINE COOLERS
Millions
of Dollars

$1500

$1000

$500

1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998

Source: Figure drawn from Wine and Liqour Handbook statistics.

RECORDING INDUSTRY PRODUCT FORM LIFE
650 CYCLES
600
550
500
Millions of units sold

450
400 Albums
350
300 Compact
250 disks
200
150
100 Cassettes
50
0
1973

1975

1977

1979

1981

1993
1983

1985

1987

1989

1991

1995
Source: Figure drawn from Recording Industry Association of America statistics.
 SOME DIMENSIONS OF THE PLC - PRODUCT
LEVEL
• Product Brand
• The specific version of a product offered by a particular company
• Product Class
• Refers to the entire product category or industry such as video games
• Product Form
• Pertains to variations within the product class
VIDEO GAME LIFE CYCLES BY PRODUCT
CLASS, PRODUCT FORM, AND BRAND
A. Video game life cycle by product class and product form (worldwide)
Worldwide sales (millions of units) 40
Product class
Total
Product form
30 8-bit machines
16-bit machines
32-/64-bit machines

20

10

0
1987 1989 1991 1993 1995 1997 1999 (est.)
VIDEO GAME LIFE CYCLES BY PRODUCT
CLASS, PRODUCT FORM, AND BRAND B. Advanced video game life cycle by brand (United States)
$4
U.S. sales, including hardware and
Nintendo
Sony
3 Sega
software ($ billion)

0
1994 1995 1996 1997 1998 1999 (est.)
 FACTORS AFFECTING THE DIFFUSION OF AN
INNOVATION

Psychological
Usage Barriers Value Barriers Risk Barriers
Barriers
• The product • The product • Risk can be • Which can
is not provides no physical, be the result
compatible incentive to social or of cultural
with existing change … economic / differences
habits not that financial or image
much better
 CATEGORIES OF PRODUCT ADOPTERS
Early adopters
13.5%
Laggards
Innovators 16%
2.5%
Early majority Late majority
34% 34%

Time

Innovators: Laggards:
Early majority:
Venturesome, higher Fear of debt, neighbors
Deliberate, many
educated, use multiple and friends are
informal social contacts
information sources information sources

Early adopters:
Late majority:
Leaders in social setting,
Skeptical, below average
multiple social circles,
social status
highly influential
 THE PRODUCT (BRAND) MANAGER
• Product Managers manage the marketing efforts for a close-knit family of
products or brands
• Responsibilities of the Product/Brand Manager
• Developing and executing a marketing program for the product line described
in an annual marketing plan
• Approving ad copy, media selection, and package design
• A role in planning, implementing, and controlling marketing strategy
 PRODUCT MODIFICATION
• Product Modification involves altering a product’s characteristic, such as its
quality, performance, or appearance, to try to increase and extend the
product’s sales
• Changing a product’s characteristics to give the sense of a revised product
can be accomplished by
• New features
• New package
• New scents, etc.
 MARKET MODIFICATION
• Market Modification strategies are utilized when a company tries to
• Increase a product’s use among existing customers
• Create new use situations, or
• Find new customers
 REPOSITIONING THE PRODUCT
• Product repositioning is changing the place a product occupies in a
consumer’s mind relative to competitive products
• A firm can reposition a product by changing one or more of the four
marketing mix elements (product, place, price, promotion)
 TRIGGERS FOR PRODUCT REPOSITIONING
• Product Repositioning can be triggered by following four factors
• reacting to a competitor’s position
• reaching a new market
• catching a rising trend
• changing the value offered
• trading up
• trading down … can be via downsizing
 BRANDING
• Branding involves an organization using a name, phrase, design, symbols, or
combination of these to identify its products and distinguish them from those
of competitors

• A brand name is any word, “device” (design, sound, shape, or color), or

combination of these used to distinguish a seller’s goods or services
 BRANDING - CONTINUED
• A trade name is a commercial, legal name under which a company does
business
• For example, the Campbell Soup Company is the trade name of that firm

• A trademark identifies that a firm has legally registered it’s brand name or
trade name so the firm has its exclusive use, thereby preventing others from
using it
 WELL-KNOWN TRADEMARKS, BRAND
NAMES, AND TRADE NAMES
Brand name that Brand name that Trade name/ legal name
can be spoken cannot be spoken of organization

• Big Mac Burger • Campbell Soup Co.

• Levi’s jeans • Compaq Corp.
• Teflon plastic • Ford Motor Co.
• Gits gulab jamun mix • Kellogg Co.
• Everest Garam Masala • Ralston Purina Co.
• Macintosh computer

Trademark, brand name, or trade name are to be

registered with relevant legal authorities
 DEFINITION OF BRAND EQUITY

Brand Equity is the

added value a given
brand provides a
product beyond the
functional benefits
provided
 PICKING A GOOD BRAND NAME

Describe product benefits

Be memorable, distinctive, and positive

Fit the company or product image

Have no legal restrictions

Alternative branding strategies
Branding strategy

Manufacturer branding
strategy

Multiproduct Multibranding Private Mixed Generic

branding strategy branding branding branding
strategy strategy strategy strategy
Sunbeam makes: Anheuser-Busch A&P has: Michelin Dog food
Sunbeam irons makes: Ann Page makes: Peanut butter
Sunbeam Budweiser canned goods Michelin tires Green beans
toasters Busch Ann Parker Sears tires Paper towels
Sunbeam Michelob bakery goods Aspirin
crockware Wurtburger Eight O’Clock Epson makes Cola
Hofbrau coffee printers as:
Toro makes: Epson
Toro Procter & Sears has: IBM
snowblowers Gamble makes: Kenmore
Toro lawn Tide appliances
mowers Cheer Craftsman
Toro garden Ivory Snow tools
hoses Oxydol
 ALTERNATIVE BRANDING STRATEGIES
Multi-Product Multi Branding Private Branding Mixed Branding Generic Branding
Branding Strategy Strategy Strategy Strategy Strategy
•Sunbeam makes: •Anheuser-Busch •A&P has: •Michelin makes: •Dog food
•Sunbeam irons makes: •Ann Page •Michelin tires •Peanut butter
•Sunbeam •Budweiser canned goods •Sears tires •Green beans
toasters •Busch •Ann Parker •Epson makes •Paper towels
•Sunbeam •Michelob bakery goods printers as: •Aspirin
crockware •Wurtburger •Eight O’Clock •Epson •Cola
•Toro makes: •Hofbrau coffee •IBM
•Toro •Procter & •Sears has:
snowblowers Gamble makes: •Kenmore
•Toro lawn •Tide appliances
mowers •Cheer •Craftsman tools
•Toro garden •Ivory Snow
hoses
•Oxydol
 OTHER BRANDING STRATEGIES

Private Branding Mixed Branding Generic Branding

• Is when a • Is a compromise • Is when there is no

manufacturer’s product between private and branding, no
is sold under the brand manufacturer branding. identification other than
name of a wholesaler or It is where a firm markets the contents of the
retailer products under its own product
name and that of a
reseller because the
segment attracted to
the reseller is different
than their own market
 PACKAGING
• Packaging is the component of a product that refers to any container in
which it is offered for sale and on which information is communicated
• To a great extent, the customer’s first exposure to a product is the package
• Packaging is expensive and an important part of marketing strategy
 BENEFITS OF PACKAGING

Communication
Functional Benefits Perceptual Benefits
Benefits
• Directions on how to • Convenience, • Connote status,
use protection, or economy, and/or
• Composition of the storage product quality
product
• Warnings and other
information
necessary to satisfy
legal requirements of
product disclosure
 WARRANTY FORMS

Extent of Extent of
Coverage Formality

Limited-cover Full Express Implied

warranty warranty warranty warranty
 SYLLABUS – SESSION 2
• Introduction to the Concept of Brand
• Product vs Brand: Concept of Brand, Origin & Need for a Brand, Brands as Designed
Positive or Emotional Relationships;
• Functions & Importance of Brand Management
• Brand Creation & Brand Name
• Brand Personality: How is it Created; Advantages of Brand Personality; Brand
Personality & Brand Image
• Relationship Building; Concept of Brand Equity; Aaker’s vs Keller’s Concept of Brand
Equity
• Positive Brand Equity vs Negative Brand Equity;
• Creating Brand Equity; Brand Equity vs Brand Value; Brand Value Defined; Brand
Review & its Benefits; Creating New Brand Value; Brand Equity Managing System
and Brand Equity Measurement.
WHAT’S THE FIRST BRAND YOU THINK OF
WHEN YOU SEE THIS COLOR?

COKE
WHAT’S THE FIRST BRAND YOU THINK OF
WHEN YOU SEE THIS COLOR?

CADBURYS
WHAT’S THE FIRST BRAND YOU THINK OF
WHEN YOU SEE THIS COLOR?

YAHOO!
WHAT’S THE FIRST BRAND YOU THINK OF
WHEN YOU SEE THIS COLOR?

FACEBOOK
WHAT’S THE FIRST BRAND YOU THINK OF
WHEN YOU SEE THIS COLOR?

IBM
WHAT’S THE FIRST BRAND YOU THINK OF
WHEN YOU SEE THIS COLOR?

SIEMENS
 BRAND ANALYSIS – YORKIE BARS
• Which Market Segment?
• Gender?
• Age Groups?
• Income Groups?
• Suitability of colours/ image used for
the brand considering their target
market….
 BRAND ANALYSIS – GALAXY BUBBLES
• Which Market Segment?
• Gender?
• Age Groups?
• Income Groups?
• Suitability of colours/ image used for
the brand considering their target
market….
 BRAND ANALYSIS – KELLOGG’S SPECIAL
• Which Market Segment?
• Gender?
• Age Groups?
• Income Groups?
• Suitability of colours/ image used for
the brand considering their target
market….
 BRAND ANALYSIS – KELLOGG’S CHOCOS
• Which Market Segment?
• Gender?
• Age Groups?
• Income Groups?
• Suitability of colours/ image used for
the brand considering their target
market….
 BRAND ANALYSIS – MAGGI MASALA
• Which Market Segment?
• Gender?
• Age Groups?
• Income Groups?
• Suitability of colours/ image used for
the brand considering their target
market….
 BRAND ANALYSIS – MAGGI MASALA
• Which Market Segment?
• Gender?
• Age Groups?
• Income Groups?
• Suitability of colours/ image used for
the brand considering their target
market….
 PROS AND CONS OF BRANDING
Advantages
• Increases loyalty
• Can charge HIGHER PRICES
• Successful brand names CAN link
to product (e.g. a “Hoover”)
• Can Launch complimentary
products in same brand name –
e.g. shampoo; conditioner;
hairspray
Drawbacks
• Cost of developing and
establishing it
• Can be copied/ near copied
• Could get a bad name as well as
a good one if quality is not kept
up
 DIFFERENCE BETWEEN PRODUCT & BRAND

Product Brand

•Made in a factory •Bought by the

•Can be copied customer
•Can be quickly •Is unique
outdated •Is timeless
 BRAND EQUITY
• David Aaker defines brand equity as “a set of brand assets and liabilities
linked to a brand, its name and symbol, that add to or subtract from the
value provided by a product or service to a firm and /or to that firm’s
customers”
• For assets or liabilities to underlie brand equity, they must be linked to the
name and/or symbol of the brand
 BRAND EQUITY
The assets and liabilities on which brand equity is based can be grouped into 5
categories
1) Brand Loyalty
2) Name awareness
3) Perceived quality
4)Brand associations in addition to perceived quality
5)Other proprietary assets: patents, trademarks, channel relationship etc.
 BRAND EQUITY

Provides value to Provides value to firm

Perceived
customer by by enhancing
Value
enhancing • Efficiency and
customer’s Name Brand effectiveness of
Awareness Associations marketing
• Interpretation / programs
Processing of
information • Prices / Margins
• Confidence in the • Brand Extensions
purchase decision
• Trade Leverage
• Use satisfaction /
delight Brand Brand Other
Proprietary
• Competitive
advantage
Loyalty
Equity brand assets
David Aaker’s Brand Equity Model
 APPRAISING BRAND ASSETS
Brand Loyalty
• What are the market shares and
sales trends?
• What are brand-loyalty levels by
segment?
• Are customers
satisfied/delighted?
• Are they dissatisfied? What is the
reason/extent of dissatisfaction?
Awareness
• Brand awareness level exists as
compared to that of
competitors?
• What are the trends?
• Is the brand being considered?
 APPRAISING BRAND ASSETS
Perceived quality
• What drives perceived quality?
• What is important to the customer?
• What signals quality?
• Is perceived quality valued- or is
the market moving towards a
commodity business
• Are prices and margins eroding
• How do competitors stack up with
respect to perceived quality
Other brand assets
• Is there a patent or trademark that
is important?
• Are there channel relationships
that provide barriers to
competitors?
• Are sustainable competitive
advantages attached to the
brand name that are not reflected
in the other four equity
dimensions?
 APPRAISING BRAND ASSETS

Brand Associations

• What mental image does the brand stimulate/evoke?

• Is that image a competitive advantage?
• Is there a slogan/ punch line /tagline /symbol that is a differentiating asset?
• How are the brand/competitors positioned? Evaluate each position with
respect to its value/relevance to consumers and how protected /vulnerable
it is to competitors. Which position is the most valuable and protected
• What does the brand mean?
• What are its strongest associations?
BRAND LOYALTY PYRAMID

Committed Buyer

Likes the brand, considers the brand as a friend

Satisfied buyer with switching cost

Habitual buyer – no reason to change

Switchers /price sensitive - indifferent- no brand
loyalty
 MEASURING BRAND LOYALTY
• Behavior Measures
• Repurchase rates
• What % of Maruti Zen owners purchase Zen on their next purchase
• % of Purchases
• Of the last five purchases made by a customer, what % went to each brand
purchased?
• Number of Brands Purchased
• What % of coffee buyers bought only a single brand?, two brands?
• Switching costs
• If it is expensive or risky for a firm or consumer to change suppliers, then the
brand loyalty is on the higher side.
• Investment in computer system or software like SAP
 STRATEGIC VALUE OF BRAND LOYALTY
• Reduced Marketing Costs
• It is much less costly to retain customers then to attract new one
(COST RATIO IS 1:4)
• Trade leverage
• Strong pull (brand loyalty) from consumers will ensure preferred shelf space
because stores know that customers will have such brands on their shopping list
• Attracting new customers
• Time to respond to competitive threats
• If a competitor develops a superior product , a loyal following will allow the firm
time needed for the product improvements to be matched and neutralized.
 CREATING & MAINTAINING BRAND
LOYALTY

Measure/Manage
Treat the customer Stay close to
Customer
Right customer
Satisfaction

Create switching
Provide extras
cost
 CREATING & MAINTAINING BRAND
LOYALTY
• Measure / Manage Customer Satisfaction
• Regular surveys of customer satisfaction are useful in understanding how
customers feel and it also helps in adjusting product and services
• Domino’s Pizza conducts weekly phone surveys of customers measuring
dimensions like response time, lumpiness of dough, freshness of pepperoni and
attitude of delivery people
• A bonus pool is distributed based upon these measures
• Create Switching costs
• Reward loyalty directly. For e.g. The airlines frequent flyers program, credit cards
 BRAND AWARENESS
• Ability of a potential buyer to
recognize or recall that a brand is a
member of a certain product Top of the mind
category
Brand recall

Brand recognition

Unaware of the
brand

The Awareness Pyramid

 BRAND AWARENESS VALUE CREATION

Anchor to which
Substance
other associations Familiarity/Liking Brands to consider
/commitment
can be attached
• McDonalds - • Recognition • The firm has • Enters the
Golden arches, provides the been in business evoked or
clean/efficient, brand with for a long time. consideration set
kids, fun, etc. familiarity and The firm is widely
people like the distributed and
familiar the brand is
successful
 HOW TO ACHIEVE AWARENESS
Be different, Symbol exposure Publicity
Memorable • Colonel Sanders - KFC, • Advertisement
• Involve a slogan or jingle Golden Arches –
Lifebuoy hai jahan, Mcdonalds
tandorosti hai wahan • Symbol should closely
associate with the brand

Event Sponsorship Consider brand

• Femina Miss India, extensions
Manikchand Filmfare • One way to gain brand
awards recall is to put the name
on other products
 PERCEIVED QUALITY

Customer’s perception of the

overall quality or superiority of a
product or service with respect to
its intended purpose, relative to
alternatives
 PERCEIVED QUALITY - QUALITY DIMENSIONS
Performance How well does a washing machine wash clothes - primary operating characteristics of service

Features Secondary elements like on/off timer in washing machine etc.

Conformance with Absence of defects -trouble free

specifications
Reliability Will the vacuum cleaner work the same way each time it is used?

Durability How long will the washing machine last?

Serviceability Is the service system efficient, competent and convenient?

Fit and finish Does the product look and feel like a quality product?

Research has shown that in many
product classes a key dimension
which is visible can be pivotal in
affecting perceptions
PERCEIVED QUALITY
Stereo Speakers - larger size means better
sound
Tomato ketchup - thickness means quality
Supermarkets - fresh products means
overall quality
Cars - a solid door-closure sound implies
good workmanship and a solid safe body
Lawn mover - noise signals quality
 BRAND ASSOCIATIONS
• Associations triggered by a brand can be assessed on the basis of the five
following indicators:
• The extent to which a brand name is able to ‘retrieve’ associations from the
consumer’s brain (such information from TV advertising)
• The extent to which association contribute to brand differentiation in relation to
the competition (these can be abstract associations, such as ‘vitality’, or
associations with concrete product benefits, such ‘will leave your washing
cleaner’)
• The extent to which brand associations play a role in the buying process (the
greater this extent, the higher the total brand equity)
• The extent to which brand associations create positive attitude/ feelings (the
greater this extent, the higher the total brand equity)
• The number of brand extensions in the market (the greater this number, the
greater the opportunity to add brand associations)
 OTHER PROPRIETARY ASSETS
• Examples are patents and intellectual property rights, relations with trade partners,
and airlines’ landing slots (the more proprietary rights a brand has accumulated, the
greater the brand’s competitive edge in those fields)
• Considering Aaker’s model, strong interrelationships occur among the dimensions of
brand equity. The last four brand equity dimensions can enhance brand loyalty,
providing reason to buy and affecting use satisfaction. Even when they are not
pivotal to brand choice, they can reassure, reducing the incentive to try others.
Therefore, brand loyalty is both one of the dimensions of brand equity and is
affected by brand equity and the other assets that generate equity. In the same
way, perceived quality could be influenced by awareness (a visible name is likely to
be well made), by associations (a visible spokesperson would only endorse a quality
product) and by loyalty (a loyal customer would not like a poor product). In some
circumstances it might be useful to explicitly include brand equity dimensions as
outputs of brand equity as well as inputs.
HOW BRAND ASSETS CREATE VALUE FOR
THE CUSTOMER

1 Brand equity can help a customer interpret, process, store,

and retrieve a huge quantity of information about products
and brands
It can affect the customer’s confidence in the purchase

2 decision; a customer will usually be more comfortable with

the brand that was last used, is considered to have high
quality, or is familiar

3 Perceived quality and brand associations provide value to

the customer by enhancing the customer’s satisfaction
 ADVANTAGES OF
AAKER BRAND EQUITY MODEL
Companies can use
Improve perception this model to gain
of product Increase loyalty leverage when
performance introducing new
products

Differentiate from
competitors
KELLER’S BRAND EQUITY MODEL
 IDENTITY

Check that
Define your customer’s
brand benefits understanding
IDENTITY
& key & image is
messages what you
intended
MEANING
 RESPONSE
• Once a customer makes a purchase from your brand, what is the response
to that purchase? This is where your brand has to live up to the reputation
that you have attempted to build earlier in the pyramid. If those luxury
clothes that you are selling for a high price don’t deliver on the quality that is
expected, the response from your customers is not going to be a positive
one.
• However, if you do deliver great quality as expected, your brand will only be
strengthened and you will have a great opportunity for growth and success.
Keeping in mind the importance of the way your customers respond to your
products, you always need to make sure you are delivering on your
promises. Failing to deliver on expectations is one of the most-damaging
things that can happen to a brand, and you might not be able to recover
from an extended period of falling short.
 RELATIONSHIPS

Buyers have
high loyalty
Brand has
community

Relationships
BRAND PERSONALITY
 BRAND PERSONALITY

A set of human Companies uses

characteristics that How does the brand personality
are associated with brand behave? to identify with their
a brand name ideal consumers
 THE CONCEPT OF
BRAND PERSONALITY IS USEFUL
Enriches understanding

Helps gain an in depth understanding of consumer

perceptions and attitudes towards the brand

Can provide more insight than is gained by asking

about perceptions

Contributes to a differentiating identity

Can differentiate brands especially where brands

are similar in product attributes

In fact, can define not only the brand but the

product class, context and experience
5 KEY DIMENSIONS OF BRAND PERSONALITY

SINCERITY EXCITEMENT COMPETENCE

SOPHISTICATION RUGGEDNESS
 SINCERITY
• A brand personality demonstrates
"sincerity" when consumers consider
it down-to-earth, honest, genuine or
cheerful
• Brands that are presented as
sincere may appeal to customers
who want to purchase products
that feel familiar and comfortable
 EXCITEMENT
• Consumers think of brands that
create "excitement" as daring,
spirited, imaginative and cutting-
edge
• The excitement brand personality
appeals to individuals who want to
add a sense of adventure to their
lives or who already live exciting
lifestyles
 COMPETENCE
• Brands known for "competency"
create images of reliability,
intelligence, success, responsibility,
dependability and efficiency
• Companies that market their brands
as competent can compete with
brands marketed for their
excitement by presenting an
alternative value
 SOPHISTICATION
• Companies that market a brand as
"sophisticated" hope to appeal to
consumers who want to feel
charming, glamorous, elegant and
romantic
• Brands in this category, such as
Rolex or Harrods, may also present
themselves as being decidedly
upper-class
 RUGGEDNESS
• Consumers who identify themselves
as outdoorsy, tough and strong
want goods or services that will
endure
• They gravitate toward the practical,
but demand more than
competence. These buyers
embrace brands they perceive as
"rugged”
 FORMULATION OF BRAND PERSONALITY

Plan for Personality

Create a Voice

Give your business a persona

Choose a Set of Identifiers

Create a Style Guide

 A. PLAN FOR PERSONALITY
• Traditional and established
• Traditional and established brands
tend to have a more formal
personality and use strong colors,
typefaces and symmetry to
communicate a message
• Modern and high-energy
• Modern and high-energy brands
tend to use brighter colors, trendy
design techniques and have a light
tone
 B. CREATE A VOICE
• The words that you used to determine your brand personality will also help
to create your voice
• A brand voice is the way you speak to your customers
 C. GIVE YOUR BUSINESS A PERSONA
• Persona- The role that one assumes or displays in public or society; or
personality, as distinguished from the inner self.
• It can be male or female, young or old, light or serious
• Develop guidelines to create consistency in expressing the benefits of your
business
 D. CHOOSE A SET OF IDENTIFIERS
• Part of identity and personality comes in the design process
• Your company logo and website are the two biggest identifiers for most
customers
1. Color
2. Typography
3. Images
4. Shape
5. Space
 E. CREATE A STYLE GUIDE
• Once you decide what your brand personality looks like, write it down and
create a scrapbook of images that link to that personality
• Create a brand style guide that details everything about your business
including voice, images, color palette, typography options, copy and tone
guidelines, and usage standards.
 DIFFERENCE BETWEEN
BRAND PERSONALITY AND BRAND IMAGE
Brand Image
• Refers to perception about the brand in
mind of public
• Denotes the tangible benefits and
attributes of brand
• The general meaning of brand image is
HOW MARKET PERCEIVES YOU
• The total personality of the brand. It is the
perception that the consumer have in
mind about particular brand
Brand Personality
• Refers to a set of human characteristics
that are attributed to a brand name. It is
something to which a person can relate
to
• Indicates emotional association of brand
• Includes all the tangible and intangible
traits as beliefs, values, attitudes, interests,
etc.
• Apart from the personality features and
characteristics, includes the
demographical feature like age, gender,
class, etc.
 DIFFERENCE BETWEEN
BRAND PERSONALITY AND BRAND IMAGE
Brand Image
• Development of perception
• Represents the OTHER VIEW
• Helps to understand the total
consumer perception about the
brand so its nature is appearance
oriented
• It signifies WHAT THE BRAND
CURRENTLY STAND FOR, how it is
viewed by the customer
Brand Personality
• Helps in development of brand
equity
• Represents the internal and external
characteristics of brand name
• Helps in making differentiation
among the brands specifically when
they are alike
• Brand personality indicates the kind
of relationship customer has with the
brand
BRAND MANAGEMENT
 VISION
• A Vision is a description of the business, as you want it to be
• It is, “a mental image produced by the imagination.”
• It involves seeing the optimal future for your business, and vividly describing
this vision
• The description might include HOW things will be WHERE, with WHOM, WHAT
you’ll be doing and HOW you’ll feel
 BRAND VISION
• A vision paints a picture of what you are trying to achieve with your brand in
a simple sentence
• This is the strategic goal of a brand
• It indicates the direction into which a given brand should develop medium-
or long-term
• EXAMPLE
• "To be the Number 1 brand in the UK sun care market in penetration, sales and
likeability“
• “To provide innovative solutions to market needs”
 BRAND AMBASSADOR
• One who represent the product on
behalf of the entire company
• A well-connected person or a celebrity
who is used to promote and advertise a
product or service
• A brand ambassador can also be
called as an marketing agent of a
company
• Brand ambassador is a marketing term
for a celebrity employed by a
company to promote its products or
services within the activity known as
celebrity branding. The brand
ambassador is meant to embody the
corporate image in appearance,
demeanor, values and ethics.
 CHARACTERISTICS OF A GOOD
AMBASSADOR
• Understanding that no matter how much you already know, there is still
much more to learn
• A strong desire to really understand other people
• Realizing you’re not superior to others, only different
• Knowing you represent something of real value
• Realizing what the real characteristics of your group are
• A strong wish to understand the truth about yourself and others
 ROLE OF BRAND MANAGERS
• Researching consumer markets and monitoring market trends
• Looking at the pricing of products and analyzing the potential profitability
• Exploring new ways to communicate with customers
• Generating names for new and existing products and services and coming
up with packaging designs
• Overseeing the production of TV, newspaper and magazine adverts
• Liaising with art designers, copywriters, media buyers and printers
• Ensuring the designs and messages in marketing literature and campaigns
meet the company brand and regulatory guidelines
• Monitoring consumer reactions through focus groups and market research
 QUALITIES OF A BRAND MANAGER
• Have an instinctive feeling about future product concepts
• Have strong marketing skills and knowledge
• Be creative, entrepreneurial thinkers
• Have excellent communication and listening skills
• Enjoy working in a deadline-driven, creative environment
 WHAT IS THE VALUE OF A BRAND
• Price premium generated by the name
• Impact of the name on customer preference
• Replacement value of the brand
• Stock price
• Earning power of a brand
 REPLACEMENT VALUE OF THE BRAND
• Replacement cost: cost of establishing a comparable name and business
• It is estimated that it costs $50 -100 million to develop and launch a new
consumer product and chances of success is around 12-15%
• Thus, on an average, a firm will have to make 6 products costing $ 300 million
(taking the lower estimate)to ensure at least one winner
• A firm thus should be willing to pay $ 300 million to an established brand in
the category of interest
 BRAND VALUE BASED ON STOCK PRICE
MOVEMENTS
• Stock market adjusts the price of a firm to reflect future prospects of its
brands
• Find market value of firm --> function of stock price and number of shares
• Find the replacement cost of tangible assets (plant, machinery, inventories,
cash)
• Subtract latter from former
• The balance intangible assets is apportioned into three components : value of
brand equity , value of nonbrand factors (R&D, PATENTS) and value of industry
factors (regulation and concentration)
• Brand equity is presumed to be a function of age of the brand, entry of the
brand in the market (older brand has more equity), cumulative advertising
(advertising creates equity) and the current share of industry advertising (current
advertising share is related to positioning advantages)
BRAND VALUE BASED ON FUTURE EARNINGS
• Find the discounted present value of future earnings attributable to brand -
equity assets
• Approach No.1 :-- discount the profit stream that is projected
• Approach No. 2 : when brand profit plan is not available , estimate current
earnings and apply an earnings multiplier. If the current earnings are not
representative because they reflect an up or down cycle , then average of
the past few years is more appropriate.
• The multiplier range could be 7 to 12 or 15 to 25 depending on the industry.
• The actual multiplier is a function of the competitive advantage of the brand
• The estimate is based on weighted average of appraisal of the brand on the
5 dimensions of brand equity
 SYLLABUS – SESSION 3
• Brand Positioning: Positioning Concept; Understanding of Components
through an Example; Target Market; Point of Difference; Brand Positioning
Process;
• Positioning Statement; Positioning Errors; Brand Variables; Brand Positioning
Tips;
• Brand Extension; Why Brand Extension? Fundamentals of Brand Extension;
Brand Extension Examples; Brand Diversification/ Extension/ Stretching; Line
Extension/ Category Extension.
 WHAT IS POSITIONING?

Positioning is the act of

designing the company’s
offering and image to
occupy a distinctive
place in the mind of the
target market.
 VALUE PROPOSITIONS

Perdue Chicken Domino’s

•More tender golden •A good hot pizza,

chicken at a delivered to your
moderate premium door within 30
price minutes of ordering,
at a moderate price
COMPETITIVE FRAME OF REFERENCE
 DEFINING ASSOCIATIONS

Points-of-difference (PODs) Points-of-parity (POPs)

• Attributes or benefits • Associations that are not

consumers strongly necessarily unique to the
associate with a brand, brand but may be
positively evaluate, and shared with other brands
believe they could not
find to the same extent
with a competitive brand
PODS AND POPS
 ESTABLISHING CATEGORY MEMBERSHIP
• This “four-in-one entertainment solution” from Konica failed to establish
category membership
CONVEYING CATEGORY MEMBERSHIP
Announcing category
benefits

Comparing to exemplars

Relying on the product

descriptor
CONSUMER DESIRABILITY CRITERIA FOR
PODS
Relevance

Distinctiveness

Believability
DELIVERY CRITERIA FOR PODS

Feasibility

Communicability

Sustainability
 EXAMPLES OF NEGATIVELY CORRELATED
ATTRIBUTES AND BENEFITS

Low-price Nutritious vs.

Taste vs. Efficacious
vs. High Good
Low calories vs. Mild
quality tasting

Powerful vs. Strong vs. Ubiquitous Varied vs.

Safe Refined vs. Exclusive Simple
 ADDRESSING NEGATIVELY
CORRELATED PODS AND POPS
• Present separately
• Leverage equity of another
entity
• Redefine the relationship
 DIFFERENTIATION STRATEGIES

Product Personnel Channel Image

 PRODUCT DIFFERENTIATION

Product form Features Performance Conformance Durability

Ordering
Reliability Reparability Style Design
ease

Customer Customer
Delivery Installation Maintenance
training consulting
 PERSONNEL DIFFERENTIATION

Qatar Airways Singapore Airlines Emirates

CHANNEL DIFFERENTIATION
IMAGE DIFFERENTIATION
 CLAIMS OF PRODUCT LIFE CYCLES

Products have a limited life

Product sales pass through distinct stages each with different

challenges and opportunities
Profits rise and fall at different stages

Products require different strategies in each life cycle stage

SALES AND PRODUCT LIFE CYCLE
COMMON PRODUCT LIFE-CYCLE PATTERNS
STYLE, FASHION, AND FAD LIFE CYCLES
THE PIONEER ADVANTAGE
LONG-RANGE PRODUCT MARKET
EXPANSION STRATEGY
 STRATEGIES FOR SUSTAINING
RAPID MARKET GROWTH

Improve product
Add new models
quality, add new Enter new market
and flanker
features, and segments
products
improve styling

Shift from product-

Lower prices to
awareness
Increase distribution attract the next
advertising to
coverage layer of price-
product-preference
sensitive buyers
advertising
 STAGES IN THE MATURITY STAGE
Decaying
Growth Stable
maturity
MARKETING PRODUCT MODIFICATIONS
• Quality improvements
• Feature improvements
• Style improvements
MARKETING PROGRAM MODIFICATIONS

Prices
Distribution
Advertising
Sales Promotion
Services
 WAYS TO INCREASE SALES VOLUME

Convert nonusers

Enter new market segments

Attract competitors’ customers

Have consumers use the product on more occasions

Have consumers use more of the product on each occasion

Have consumers use the product in new ways

A PRODUCT IN DECLINE
 MARKET EVOLUTION STAGES

Emergence Growth Maturity Decline

 EMERGING MARKETS

Latent

Single-niche

Multiple-niche

Mass-market
Zibbie Zone is one of several
virtual worlds tied to toys.
MATURITY STRATEGIES
BRAND POSITIONING PROCESS
 THE BRAND POSITIONING PROCESS
• Step 1: Identify a relevant set of competitive products
• A positioning analysis at the product or brand level can be helpful.
• Marketers who omit important substitute products or potential competitors risk
being blindsided by unforeseen competition.
• Step 2: Identify determinant attributes
• Positioning can be based on a variety of attributes:
• Features, benefits, parentage, manufacturing process, ingredients, endorsements,
comparison with a competitor’s product, environment positioning, and price/quality.
• Marketers should rely primarily on determinant attributes.
 THE BRAND POSITIONING PROCESS
• Step 3: Collect data about customers’ perceptions for brands in the
competitive set
• The marketer needs to know what attributes are determinant for the target
market and the product category under consideration.
• The marketer also needs to know how different brands in the competitive set are
viewed on these attributes
 THE BRAND POSITIONING PROCESS
• Step 4: Analyze the current positions of products in the competitive set
• The positioning grid, also called a perceptual map provides a visual
representation of the positions of various products or brands in the competitive
set in terms of two determinant attributes.
• Value curve comprises more than just two dimensions.
• Building a positioning grid
• Positioning for a new store could be done by examining the positioning map for
empty spaces (competitive gaps) where no existing store is currently located .
• Building a value curve
• Value curves indicate how products within a category compare in terms of the
level—high or low.
• Value curves are more multidimensional
PERCEPTUAL MAP OF WOMEN’S CLOTHING
RETAILERS IN WASHINGTON, D.C.
VALUE CURVES FOR NEIMAN MARCUS,
JC PENNEY, AND SEARS
 THE BRAND POSITIONING PROCESS
• Step 4: Analyze the current positions of products in the competitive set
• Marketing opportunities to gain a distinct position
• Competing head-on against the leaders on the basis of attributes appropriated by
larger competitors is not likely to be effective.
• A better option is to concentrate on an attribute prized by members of a given
market segment.
• Constraints imposed by an intense position
• Threat of alienating part or all of the product’s current users regardless of success with
its newly targeted group.
• Dilution of an existing intense position as a result of consolidation.
• Temptation to overexploit the position by using the brand name on line extensions
and new products.
 THE BRAND POSITIONING PROCESS
• Step 4: Analyze the current positions of products in the competitive set
• Limitations of product positioning analysis
• It does not tell the marketer which positions are most appealing to customers.
• There is no way to determine if there is a market for a new brand or store.
• To solve such problems it is necessary to measure customers’ preferences and locate
them in the product space along with their perceptions of the positions of existing
brands.
• This is called a market positioning analysis.
 THE BRAND POSITIONING PROCESS
• Step 5: Determine customers’ most preferred combination of attributes
• Survey respondents can be asked to think of the ideal brand within a category.
• Respondents could be asked not only to judge the degree of similarity among
pairs of existing brands but also to indicate their degree of preference for each.
• Conjoint analysis
 THE BRAND POSITIONING PROCESS
• Step 6: Consider fit of possible positions with customer needs and segment
attractiveness
• A market positioning analysis can simultaneously identify distinct market
segments as well as the perceived positions of different brands.
• By examining the preferences of customers in different segments along with their
perceptions of the positions of existing brands, analysts can learn much about:
• The competitive strength of different brands in different segments.
• The intensity of the rivalry between brands in a given segment.
• The opportunities for gaining a differentiated position within a specific target
segment.
 THE BRAND POSITIONING PROCESS
• Step 7: Write positioning statement or value proposition to guide
development of marketing strategy
• A positioning statement identifies the target market for which the product is
intended and the product category in which it competes and states the unique
benefit.
• A value proposition is similarly explicit about what the product does for the
customer and typically also includes information about pricing relative to
competitors.
 THE BRAND POSITIONING PROCESS
• Step 7: Write positioning statement or value proposition to guide
development of marketing strategy
• Both positioning statements and value propositions should generally reflect a
unique selling proposition (USP) that the product embodies.
• In its shortest form, a value proposition typically looks like this:
• Target market
• Benefits offered (and not offered)
• Price range (relative to competitors)
• Positioning statement or value proposition should state benefits that the user of
the product will obtain, rather than features or attributes of the product itself.
• Typically not written in catchy consumer language.
 OUTCOME OF EFFECTIVE
POSITIONING: BUILDING BRAND EQUITY
• Brand equity reflects how consumers feel, think, and act toward the brand.
• When companies create differences between their brands and other
brands, differences that consumers view as meaningful, brand equity is the
result.
• Managing brand equity
• Brand reinforcement
• Brand revitalization
• The emergence of new competitors or changes in consumer tastes and
preferences can affect a brand’s fortunes.
• Brand positioning is an ongoing, never-ending process.
 SOME CAVEATS IN
POSITIONING DECISION MAKING
• Marketing strategists should focus their efforts on delivering the benefits that
matter most to the target customer.
• For customers, it’s the benefits that matter.
 TAKE-AWAYS
• Clear and distinctive positioning that differentiates a brand from others with which it
competes is usually essential for developing a winning marketing strategy.
• The positioning process outlined in this chapter helps decision makers choose a
position that maximizes their chance of establishing sustainable competitive
advantage
• Distinctive and intense positioning is best accomplished when based on one or at
most two attributes. More are likely to be confusing to customers.
• Writing clear and succinct positioning statements or value propositions can play an
important role in ensuring effective development and execution of a marketing
strategy.
• Effective brand positioning decisions establish the foundation upon which successful
marketing strategies and programs are built, thereby setting the stage for the
creation of 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 brands.

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.
 BRAND EXTENSION

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 matching those of the core business, and
these values / aspirations are embodied in the brand, it is
likely to be accepted by customers in the new business
 BRAND EXTENSION
There are many different ways of Brand extension such as "brand alliance",
co-branding or “brand franchise extension”

There could be two categories of extension; extension of product-related

association and non-product related association

Another form of brand extension, is a licensed brand extension. Where the

brand-owner partners takes on the responsibility of manufacturer and sales
of the new products, paying a royalty every time a product is sold
 BRAND EXTENSION - EXAMPLES
• An example of a brand extension is JELLO - GELATIN creating Jello pudding
pops. It increases awareness of the brand name and increases profitability
from offerings in more than one product category.

• A renowned/successful brand helps an organization to launch products in

new categories more easily. For instance, Nike’s brand core product is shoes.
But it is now extended to sunglasses, T – shirts, soccer balls, basketballs, and
golf equipments.
 BRAND EXTENSION - EXAMPLES
• RALPH LAUREN’S POLO Brand successfully extended from clothing to home
furnishings such as bedding and towels. Both clothing and bedding fulfill a
similar consumer function of comfort and hominess.

• Similarly the case for FAB INDIA from home furnishings and clothing to FMCG,
Soaps, Detergents, Food Products, etc
 BRAND EXTENSION - EXAMPLES
• Another example is Virgin Group, which was initially a record label that has
extended its brand successfully many times:

• From transportation (aeroplanes, trains) to games stores, telecom,

beverages and video/ music stores such VIRGIN MEGASTORES.
 BRAND EXTENSION
• Brand extension is one of the new product development strategies which
can reduce financial risk by using the parent brand name to enhance
consumers' perception due to the core brand equity.

• While there can be significant benefits in brand extension strategies, there

can also be significant risks, resulting in a diluted or severely damaged brand
image.
 PRODUCT EXTENSIONS
• Product extensions are versions of the same parent product that serve a
segment of the target market and increase the variety of an offering.
• An example of a product extension is COKE vs. Diet Coke in same product
category of Soft Drinks.
• This means the market is catered for as they are receiving a product from a
brand they trust and Coca Cola is catered for as they can increase their
product portfolio and they have a larger hold over the market in which they
are performing in.
• Majority of new products used brand extension to introduce new brands and
to create sales. Launching a new product, is not only time consuming but
also needs a big budget to create awareness and to promote a product's
benefits.
 BRAND EXTENSION – SUCCESS STORIES
• Instances where brand extension has been a success are
• Wipro 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
• Mother Diary – no longer famous for Dairy Milk Only – but for diary processed
items like Ice-Creams, Yogurt, etc.
• BRITANNIA, TATA GROUP, ITC GROUP, UNILEVER GROUP – BRAND EXTENSION FOR
ENTIRE PRODUCT PORTFOLIO
 BRAND EXTENSION
• Studies indicate that dilution effect do occur when the extension across
inconsistency of product category and brand beliefs.
• Branding does not always follow a rational line. One mistake can damage all
brand equity. A classic extension failure example would be Coca Cola
launching “New Coke” in 1985.
• Not only did Coca Cola not succeed in developing a new brand but sales of
the original flavor also decreased.
 BRAND EXTENSION- FAILURE STORIES
• In case of new Coke, Coca Cola has forgotten what the core brand was
meant to stand for. It thought that taste was the only factor that consumers
cared about.
• Rasna Ltd. - is among the famous soft drink companies in India. But when it
tried to move away from its niche, there was little success. When it
experimented with fizzy fruit drink “Oranjolt”, the brand bombed even before
it could take off.
• Oranjolt was a fruit drink in which carbonates were used as preservative. It didn’t
work out because it was out of synchronization with retail practices.
 BRAND EXTENSION - ADVANTAGES
• It makes acceptance of new product easy by reducing perceived risks
• It increases brand image.
• The likelihood of gaining distribution and trial increases.
• The efficiency of promotional expenditure increases. Advertising, selling and
promotional costs are reduced, due to economies of scale
• Cost of developing new brand is saved
• Consumers can now seek for a variety
• There are packaging and labeling efficiencies
 BRAND EXTENSION – FEEDBACK BENEFITS
• The image of parent brand is enhanced.
• It revives the brand and allows subsequent extension.
• Brand meaning is clarified.
• It increases market coverage as it brings new customers into brand franchise.
• Customers associate original/core brand to new product, hence they also
have quality associations.
 BRAND EXTENSION- DISADVANTAGES
• Brand extension in unrelated markets may lead to loss of reliability if a brand
name is extended too far.
• There is a risk that the new product may generate implications that damage
the image of the core/original brand.
• There are chances of less awareness and trial because the management
may not provide enough investment for the introduction of new product.
• If the brand extensions have no advantage over competitive brands in the
new category, then it will fail.
BRAND POSITIONING – ASSOCIATIONS
 BRAND – RANGE OF ASSOCIATIONS
• This mental map shows the range of associations for Nike. Some associations
are product specific while others are not. Brands typically have many
associations, but only three to five are the primary drivers of brand equity.
• Core associations for Nike include: innovative technology, high quality/stylish
products, joy and celebration of sports, maximum performance, self-
empowerment and inspiring, locally and regionally involved, and globally
responsible.
• When compared to Reebok, comfort and stylishness are points of parity
while technology and empowerment are points of difference. Compared to
Adidas, performance and quality are points of parity while technology and
empowerment are points of difference.
 BRAND RESONANCE
• Brand resonance is characterized by strong connections between the
consumer and the brand.
• Brands with strong resonance benefit from increased customer loyalty and
decreased vulnerability to competitive marketing actions.
• The challenge for the brand is to ensure that the customer has the right
experiences to create the right brand knowledge.
BRAND RESONANCE- COMPLETE FLOW CHART
 BRAND RESONANCE – STAGES OF PROGRESS

• The first stage of brand development is identity. At this stage, consumers are
just beginning to understand what the brand is.
• Salience refers to how easily or often a consumer thinks of the brand,
especially at the right place and right time.
• The second stage is meaning. Here, consumers begin to understand points of
difference and points of parity such as performance and reliability.
• The third stage is response, which is where consumers judge the brand with
their heads and hearts. Consumers judge factors such as credibility,
expertise, and trustworthiness.
 BRAND RESONANCE
• Feelings at this stage can be divided into two categories: experiential and
enduring. Warmth, fun and excitement are experiential feelings. They are
more immediate and short-lived than enduring feelings.
• Enduring feelings, such as security, social approval, and self-respect, are
private and potentially part of day-to-day life.
• The final stage is resonance, or intense, active loyalty. This is where customers
feel a connection or sense of community with the brand and they would
miss it if it went away.
 CO-BRANDING
• Co-branding, also called brand partnership, is when two companies form an
alliance to work together, creating marketing synergy.
• The term 'co-branding' is relatively new to the business vocabulary and is
used to encompass a wide range of marketing activity involving the use of
two (and sometimes more) brands.
• Co-branding is an arrangement that associates a single product or service
with more than one brand name, or otherwise associates a product with
someone other than the principal producer.
• The typical co-branding agreement involves two or more companies acting
in cooperation to associate any of various logos, color schemes, or brand
identifiers to a specific product.
 CO-BRANDING
• The objective for this is to combine the strength of two brands, in order to
increase the PREMIUM consumers are willing to pay, make the product or
service more resistant to copying, or to combine the different perceived
properties associated with these brands with a single product.
• Thus co-branding could be considered to include sponsorships:
• MERU CABS – Vs Earth Infrastructure
• CWG & World CUP 2011 – CO Sponsors
• Marlboro lends it name to Ferrari
• FMCG Products Vs HUL
• JET AIRWAYS AND CITIBANK – CROSS PROMOTIONS
• NGOs: Collaboration with Private Sector Banks
 TYPES OF CO-BRANDING
• Companies can work with other companies to combine resources and
leverage individual core competencies, or they can use current resources
within one company to promote multiple products at once.
• The forms of co-branding include:
• Ingredient co-branding
• Same-company co-branding
• Joint venture co-branding
• Multiple sponsor co-branding
 TYPES OF CO-BRANDING
• One form of co-branding is ingredient co-branding. This involves creating
brand equity for materials, components or parts that are contained within
other products.
• Examples:
• Betty Crocker’s brownie mix includes Hershey’s chocolate syrup
• Baskin Robbins Vanilla Ice Cream and Cadbury’s Hot Chocolate
• Pillsbury Brownies with Nestle Chocolate
• Dell Computers with Intel Processors
• Kellogg Pop-tarts with Smucker’s fruit
 TYPES OF CO-BRANDING
• Same-company co-branding - when a company with more than one
product promotes their own brands together simultaneously
• Kraft Lunchables and Oscar Mayer meats
• Heinz – Baked Beans and Tomato Sauce
• EXPEDIA – Flights, Hotels, Vacations – can offer deals separately or as a
composite solution
• Joint venture co-branding is another form of co-branding defined as two or
more companies going for a strategic alliance to present a product to the
target audience.
• British Airways and Citibank formed a partnership offering a credit card where
the card owner will automatically become a member of the British Airways
Executive club
 TYPES OF CO-BRANDING
• Multiple sponsor co-branding - involves two or more companies working
together to form a strategic alliance in technology, promotions, sales, etc.
• Citibank/American Airlines/Visa credit card partnership
 SYLLABUS – SESSION 4
• Brand Strategies: Definition; Creating Customers; Defining your Brand;
• Developing Appropriate Brand Strategy
• Brand Marketing Strategy
• No. of Brands for a Company
• Gen-Y Brand Strategy
• Brand Customer Relationship
• The Face of your Business Strategy
• Intellectual Property Rights
 GEN Y
• The segment with birth dates between 1979 and 1994, according to
demographers
• Largest consumer group in history
• This is an extremely marketing-savvy group that understands how numerous
companies actively covet their business
• GenY greets new brands with extreme skepticism
• GenY buys experiences, not products
• Well-educated, tech savvy, socially responsible and eager to be seen as individuals
instead of a general audience, Generation Y responds best to messaging that is:
• Honest
• Short
• Direct
• Personalized
• Ethical
• Humorous
• Surprising
• Demographics alone will not help, as they are not a uniform market
• Psychographics and implementing the Value And Lifestyles (VALS) model is essential
to understanding Gen Y on a more granular scale and crafting an effective
marketing strategy
 4 THINGS TO KEEP IN MIND

Quality & price are key in purchasing decisions

First generation digital natives

Authenticity is crucial

Word-of-mouth is very effective

 INTELLECTUAL PROPERTY

Which are the IP protection tools available ?

•Patent
•Industrial Design
•Trademark
•Copyright
 TYPES OF IP

Copyrights Industrial Property

•Literary & Artistic •Trademarks

Works •Patents
•Databases •Industrial Designs
 TRADEMARK
What is a trademark ™ ?
• Sign, or combination of signs, used in the trade to identify and distinguish the
goods or services of one enterprise from those of another. A trademark
owner is granted exclusive rights to
• Use the mark in relation to the good or services with respect to which it is
registered
• Prevent others from using a substantially identical or deceptively similar mark in
relation to the goods or services registered by the mark
 TRADEMARK
What can be protected as a trademark?
• Words, letters, numerals, pictures, shapes and colors or combination of any
• It is now allowed for the registration process of less traditional forms of
trademark, such as three dimensional signs (like the coca-cola bottle),
audible signs (like the Nokia jingle), or olfactory signs (like perfumes)
 MAIN FUNCTIONS OF A TRADEMARK
Distinguishing the Referring to a Referring to a
products or services particular enterprise particular quality of
of one enterprise which offers the the product or
from those of other products or services service for which it is
enterprises on the market used

Promoting the
marketing and sale
of products, and the
marketing and
rendering of services
 REQUIREMENTS TO SEEK REGISTRATION

Not be Not be
Be distinctive
deceptive descriptive

Not belong to Be in conformity

the exclusions with public
provided by the order and
law morality
 COPYRIGHT

Does not protect the The creativity protected

ideas themselves but is the originality in the
only the form of choice in the
expression of ideas arrangement of words,
represented in a musical notes, colors,
physical embodiment and shapes
 HOW TO PROTECT COPYRIGHT
Arises automatically on
No formal registration
creation of the work,
process required
provided it is original
Term of copyright
depends on the type of
work that is protected,
when it was made and
whether it was
published.

Generally, protection
lasts for 70 years after
the death of the
creator.
 COPYRIGHT

Thanks to the copyright, owners Mostly there are two types of

can prohibit or authorise that their limitations to copyright:
works be: • Free use
• copied or reproduced in various forms • Non-voluntary licences
• distributed to the public in copy format
• performed in public
• broadcasted and used on-line
• translated into other languages
• adapted, such as novel into screenplay
 SYLLABUS – SESSION 5
• Brand Communication & Integrated Branding: What is Brand
Communication?
• Consumer Culture
• Brand Perception; Advertising; Media Type Selection;
• Above the Line Media; Below the line Media;
• Packaging; Integrated Branding;
• Process and Issues Around Integrated Branding;
• How Does Integrated Branding Help an Organization?
 Market Communications
Customer Interface
& Branding
• The customer interface • The motivators that a
brings to life the value company can utilize to
proposition and motivate consumer
associated business traffic and ultimately
model consumption
INTEGRATING MARKET COMMUNICATIONS
AND BRANDING
• Branding
• Customer’s perception of the offering
• Performance
• Looks
• How does it make me feel
• Messages it sends to others
• Branding Basics
• What makes a good brand
• Framework for brand equity
• 10-step process to build brands
• Branding choices
• Market Communications
• Nurtures perceptions
• Broad vs. individual
 BRANDING

Necessary but not Maybe more important

Adds value in each step
sufficient condition for in online than offline
of the decision process
success environment
• Pre-purchase
(attracting prospects)
• Purchase (erasing
doubt)
• Post-purchase
(assurance)
 VALUE OBJECTIVE
• Brand Creation
• Initially awareness, then follows loyalty
• Communications initially awareness, later detailed information of the brand
• Store Traffic
• Brand campaign leads to increased traffic
• Product Trial
• Product Sales
• Brand reinforcement
• Communication mix to increase brand awareness, recognition, and customer
benefit awareness
 BRAND STRENGTH MATTERS
Flood of new
Strong brands –
entrants – too many
customers come to All winners currently
brands. Hence,
you vs. chasing have strong brands
need to build your
customers
presence

Conversion rates –
Instant Message – stronger the brand
contains lots of higher the closure /
associations conversion rate of
prospective sale
 BRANDING BASICS

Core product or service

“Wrap-arounds” such as superior service, clubs, environment

Communications

Simple conceptual model of brand equity

• A set of assets (and liabilities) linked to a brand’s name and symbol
• Financial criteria – dollar value
• Customer responses to brand
• Benefits to both customer and the firm
 COMPONENT OF BRAND EQUITY
• Brand awareness - depth and/or breadth
• Brand associations
• Strength – of association, intensity of word, phrase, or brand meaning
• Two criteria – relevancy and consistency
• Valence – association is positive or negative
• Uniqueness – memorable and/or distinctive
• Customer benefits
• Confidence
• Loyalty
• Satisfaction with experience
• Firm benefits
• Revenue growth
• Increased margins
• Lower marketing costs
 WHAT IS A GOOD BRAND?

⚫ Mix of off-line and on-line advertising

Marketing Communications
⚫ Emphasizes advantages to AAdvantage
memberships, including non-expiring miles
and on-line services

⚫ Superior service
Core
Product / ⚫ AAdvantage frequent flier mile club
Service ⚫ Award winning Admirals Club lounges
⚫ Comfortable chairs
⚫ Portable defibrillators on every flight

⚫ Safe, on-time transportation from A to B

Brand Prestige
 A SIMPLE CONCEPTUAL MODEL OF BRAND EQUITY
… provides positive … and benefits both target
A good brand... consumer responses... customers and the firm

BRAND AWARENESS CUSTOMER BENEFITS

Marketing Communications ⚫Depth ⚫Confidence

⚫Breadth ⚫Loyalty

⚫Satisfaction

Core
Product /
Service

BRAND ASSOCIATIONS FIRM BENEFITS

⚫Strength ⚫ Reduce marketing costs

⚫relevant ⚫ Increased margins

⚫consistent ⚫ Opportunity for brand

⚫Valence extensions
⚫Uniqueness

⚫memorable

⚫distinctive

Source: Keller (1996), Aaken (1996), Strategic Market Research Group, Marketspace Analysis
 POINT-COUNTERPOINT: NEW BRAND VS. USE EXISTING BRAND
New Brand
⚫ An existing brand name limits the size
of the user base
• A single company brand name cannot
be the “objective, third party portal (I.e.
Travelocity will attract more visitors as
compared to AA.com)
• Existing brands are less likely to “get
it” (e.g. less usable interfaces)
Use Existing Brand
⚫ Enormous amounts of time and
money are necessary to build new
brands
• Customer understands and will
respond to a known brand
• Customer will understand the value of
being able to use both on-line and off-
line services interchangeably
• Target customers will not be confused
 MARKET COMMUNICATIONS
• Interaction with the brand
• Other’s experience
• Mass marketing approaches
• “Shelfspace equals marketshare”
• “Mindshare leads to marketshare”
• Mentalspace is marketspace
• Innovation in communications techniques for business
• Power and impact of strong brands
• Opportunity to reinforce online with offline and visa versa
• Hybrid approaches to marketing communications
 THE 4 CATEGORIES OF COMMUNICATION
Traditional Mass General
Direct Personalized
Marketing Approaches
• Sales Force • Permission • Television • Banner Ads
• Retail Sales Marketing • Radio • E-Mail
• Customer service • Personalized • Print • Viral Marketing
reps recommendations • Billboards • Portal
• Personalized • Superior customer Sponsorships
advertisements service • Associate
• Personalized web Programs
pages • Online / offline
• Personalized partnerships
Upsell • Leverage large
customer base
 INTEGRATED BRANDING

Integrated Non-Integrated

• Instantly recognizable • Identity less consistent and therefore blends

• Consistent message that is easy to in amongst market noise
remember • Less distinctive and less focused so easier to
• Easily understood forget
• Acting together • Requires more effort to understand
• Trustworthy • Individuals, departments, divisions of an
• Pleasing character organization appear to act independently
• Less trustworthy as product/service will
appear less consistent
• Character less identifiable and harder to
anticipate
 BENEFITS OF INTEGRATED BRANDING

Integrated marketing
communications helps
The brand is easier to sell
companies sell more, more
and will generate more
profitability and achieve
revenue because it is more
their objectives, increasing
appealing and trustworthy
the return on marketing
spending
CONSUMER CULTURE
 CONSUMER CULTURE
• What is it?
• The sum total of learned beliefs, values, and customs that serve to regulate the
consumer behavior of members of a particular society
• Why do we care?
• Shapes behavior
• Subculture
• Culture provides meaning
• Cultural norms
• Cultural sanctions
• Pop culture
• Sex roles
 KEY CHARACTERISTICS OF CULTURE
• The Impact of culture is hard to identify
• Culture is dynamic
• Culture is shared
• Culture is learned through enculturation and acculturation
• Culture offers order, direction, and guidance
• in all phases of human problem solving
• e.g. When to eat, Where to eat
 CORE VALUES
• Where does culture come from?
• Ecological factors
• Physical environment and habitat
• Traditions
• How is culture communicated?
• Language and symbols
• Ritual
• Sharing of Culture
 CULTURAL VALUES
• Dimensions
• Individualism / Collectivism
• What does it measure?
• Masculinity / Femininity
• What does it measure?
• Power Distance Index
• What does it measure?
 CULTURAL VALUES
• Dimensions (cont’d)
• Uncertainty Avoidance
• What does it measure?
• Long-term Orientation
• Guanxi
• CSV Scoreboard
• Cultural distance
 HOW IS CULTURE LEARNED?
• Socialization
• Enculturation
• Acculturation
• Influences
• Ethnic identification
• Consumer ethnocentrism
 HOW IS CULTURE LEARNED?
• Quarter of Institutions
• What are they?
• World Teen Culture
• Non-smoking ads
• Modeling
• Shaping
 COMMUNICATIONS
• Verbal Communication
• Dialects
• Translations equivalence
• Metric equivalence
 COMMUNICATIONS
• Nonverbal Communications
• High-context
• Time
• Body language
• Space
• Etiquette
• Relationships
• Agreement
• Symbols
 EMERGING CULTURES
• Purchasing power parity
• Glocalization (not a typo)
GLOBAL CONSUMER
CULTURE
Culture in a globalized context
Global Consumer Culture
 CULTURE IS. . .

The accumulation of
shared meanings,
rituals, norms, and
other traditions among
the members of an
organization or society
 CULTURE

Values
Homogenous
group of Ideas
people
Attitudes
 TYPES OF CULTURE

Objective Culture Subjective Culture

• Can be easily seen and • Not so easily understood

thus more easily on immediate
interpreted or observation
understood • The roles we play
• Cars we drive • The beliefs we hold
• Clothes we wear • The values we possess
• Food we eat
ICEBERG CONCEPT OF CULTURE
 DIFFUSION OF INNOVATIONS
Innovators (2.5%)

Early Adopters (13.5%)

Early Majority (34%)

Late Majority (34%)

Laggards (16%)
 DIFFUSION OF INNOVATIONS

2.5% 13.5% 34% 34% 16%

Innovators Early Adopters Early Majority Late Majority Laggards

• venturesome, • social • deliberate, • skeptical, • neighbors

educated, leaders, many traditional, and friends
multiple info popular, informal lower socio- are main info
sources, educated social economic sources, fear
greater contacts status of debt
propensity to
take risk
DIFFUSION OF INNOVATIONS
 CONSUMPTION

People buy
products not for
what they do, but
for what they mean
 CULTURAL DIFFERENCES

Cultural differences
influence the way we,
as humans, see the
world, interact in the
marketplace, and
relate to one another.
FUNCTIONAL AREAS OF A CULTURAL
SYSTEM
Aspects of Culture

Ecology Social System

Ideology

World View Ethos

 CULTURAL VARIABILITY
Hofstede's Typology
Dimensions of Variability

Individualism/
Power Distance Collectivism

Uncertainty Avoidance Masculinity/Femininity

 CULTURAL VARIABILITY

Individualism / Uncertainty Masculinity /

Power Distance
Collectivism Avoidance Feminity
• Level of social • The extent to • Degree to • One gender’s
inequality and which the which people roles are
how willing welfare of the feel threatened considered
members of a individual by ambiguous superior to the
society are to versus that of situations and other gender
accept the group is have beliefs
authority valued and institutions
that help them
avoid
uncertainty
 VALUES AND NORMS

Values are very general ideas about

good and bad goals

Norms are rules dictating what is right or

wrong
 ENACTED NORMS

explicitly decided upon rules

 CRESCIVE NORMS
embedded in a culture and are discovered
through interactions with that culture

•Customs - norm handed down

•Mores - custom with strong moral overtone

•Conventions - norms regarding conduct of

daily life
 CULTURE THEN AND NOW

I Love Lucy

Will & Grace

 CULTURAL OPPOSITION

Subculture Counterculture

• Relatively cohesive • Culturally homogenous

cultural system that group that develops
varies in form and values and norms that
substance from the differ from the larger
dominant culture society because of
their opposition to it
 MYTHS & RITUALS

A set of symbolic
behaviors that occur in
a fixed sequence
• Many rituals are at the heart
of consumers’ relationship
with their favorite products
• Many business owe their existence to customers’ need for ritual artifacts such
as birthday cakes, diplomas, ceremonial wine, cigars, greeting cards, etc.
 CONSUMPTION PATTERNS

Consumption
Sensitivity comes
choices cannot be “Lens” through
understood through
which people view
without cultural understanding
products
underlying issues
context
A consumer’s culture
determines the priorities the
consumer attaches to activities
and products
• Will determine success or failure
• Product benefits must be consistent
with culture
A successfully designed “new”
product will be a reflection of
dominant cultural ideals of that
period
• TV dinners
• Cosmetics made with no animal
testing
• ipods
 Sacred Consumption Profane Consumption

• Involves objects and • Involves consumer

events that are “set
apart” from normal
activities and are treated
with some degree of
respect or awe
objects and events that
are ordinary, everyday
objects and events that
do not share the
“specialness” of sacred
ones
 Sacralization Desacralization

•Ordinary events or •Sacred events or

products are products are stripped
accorded special of special status
significance by and/or reproduced in
culture mass quantities
 SYLLABUS – SESSION 6
• Branding in Different Sectors: Global Branding;
• Retail Branding;
• Service Branding;
• Techno Branding.
 DEFINITION OF ‘SERVICES’

“Services are intangible

activities or benefits that an
organization provides to
consumers (such as airline trips,
financial advice, or automobile
repair) in exchange for money
or something else of value”
Kerin et al (2006, p. 316)
THE CONTINUUM OF MARKET OFFERINGS
Equipment-based

Self-service petrol Pacific cruise

‘Almost
pure’ ‘Almost pure’
physical service
goods
Self-service Personal training
groceries

People-based
SHOSTACK’S CONTINUUM
 CHARACTERISTICS OF SERVICES
• There is no physical presence
Intangibility

• The customer must be present for the

Inseparability service to take place

Inconsistency (No • The service provider cannot provide

repeatability) exactly the same service every time

• A service cannot be stored or stockpiled

Inventory
 FOUR BRAND STRATEGIES
Product Category
Existing New
Brand Name

Existing Line Brand

Extension Extension

Multibrands New
New
Brands
 ARE YOU PRO OR NO LOGO?
(NAOMI KLIEN “NO LOGO” FLAMINGO 2000)
• Consumers manipulate Brands • Brands manipulate Consumers
• Brands are not merely products but • Branding influences consumers self
they used by consumers as forms of expression and they represent
self expression and they represent lifestyle
lifestyle • Hence brand decisions drive
consumer choice
• Hence consumers choice drives
brand decisions • Companies whitewash over third
world production, horrible labor
practices, monopolistic competition
and consumer brain washing
• Hence companies and their brands
can’t be trusted

http://www.brandchannel.com
 ARE YOU PRO OR NO LOGO?

Consumers manipulate Brands Brands manipulate Consumers

• Brands are not merely products but
they used by consumers as forms of
self expression and they represent
lifestyle
• Hence consumers choice drives brand
decisions
• Branding influences consumers self
expression and they represent lifestyle
• Hence brand decisions drive consumer
choice
• Companies whitewash over third
world production, horrible labor
practices, monopolistic competition
and consumer brain washing
• Hence companies and their brands
can’t be trusted

(Naomi Klien “No Logo” Flamingo 2000)

http://www.brandchannel.com
 SYLLABUS – SESSION 7
• Presentations