Brand Management MBA Dr Amit Rangnekar

MBA Notes 3.0

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Brand Management MBA Dr Amit Rangnekar

Session Plan

Session Theme / topics Pedagogy

Theory
Brand and Branding
Case: From No One to Number One
1 Brand value proposition
Ghadi, Chik, PaperBoat, Moov
Brand promise
Reading : Chapter 1 & 2

Brand personality Theory

2
Brand identity- articulation and execution Case: Audi: Brand Identity

Crafting the brand position Theory

Frame of reference Case: Xiaomi: Chinese Challenger
3
Brand positioning Reading : Chapters 4 &5
Testing the brand position
Brand Portfolio
Theory
Branding strategy
4 Case: VIP Bags: Luggage legacy
Portfolio strategy
Reading : Chapters 6 &7
Brand Architecture
Brand Pentagon
Brand building framework Reading: Chapter 2 &3
5
Application to business

Theory
Brand performance
Case: DMart: Big in small markets
6 Brand Track
Reading : Chapters 8
Brand Audit

Individual Assignment: (Off- contact submission) Weightage 20%: After S2

Q1. Craft the brand position for your family business or one which you intend to start (15)
Q2. How will you validate the brand position? (5)

Group Project (Off- contact submission) Weightage : 40%: After S4

Anita Dongre: Fast Fashion:
What should be the brand strategy to successfully compete against the plethora of Indian and
global bridge to luxury brands? (10)
As the scale of operations increases, how should they overcome the challenge of maintaining the
creativity and innovation levels? (10)
How do they remain relevant to the old customers and how do they get younger customers on
board? (10)
What strategies should they adopt to emerge as a global luxury brand? (10)

End Term Examination: After S6

Reference Book: Building Brand value : Ambi Parameswaran

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Class Notes
No Key Topic Coverage Page

1 Industry, competition Industry, competition and customer 7

and customer overview

2 Product Insights Commodity, generics, features, benefits, 8-10

customer value hierarchy

3 Brand and Branding Brand, value proposition, branding 11-16

4 Brand Identity Brand identity, articulation, execution 17-20

5 Brand Positioning Corporate positioning, repositioning, 21-31

perceptual map, value curve,

crafting the brand position

6 Brand Portfolio Brand portfolio, brand extension, branding strategies 32-38

Strategies

7 Brand Architecture Brand architecture, 39-42

house of brands, branded house, blended house,

brand hierarchy tree

8 Branding Models Brand personality scale, 43-53

Brand identity prism- Kapferer,

Brand Identity planning system- Aaker

Strategic brand management- Keller,

Brand laddering

9 Brand Equity Brand equity, 54-60

Aaker’s brand equity model,

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Keller’s brand equity pyramid

10 BAV, CBMS Via PPT

1.0 Brand and Branding

1.0 Features and Benefits

Buyers may be attracted by the features of a product but repeat purchases and loyalty results if a
product delivers benefits to customers which they feel they do not get in similar products. Features are
inherent to the product and benefits are what the customers derive from the product.

Brand Features Benefits

Moov Ointment Acts against back pain Relief from back pain
Hush Puppies Soft, easy to walk Comfort
Maruti cars Affordable, mileage, service Value for money
Mercedes Benz Luxury cars Prestige, status
Flipkart 24x7, range, great prices Convenience, ease of use
Swiss Knife Multi purpose tools Utility
Louis Vuitton Luxury leather goods, premium Exclusivity
Volvo Reinforced build quality, features Safety
Natural Ice cream Fruity, milky, natural, tasty Healthier, satisfying
Nokia Phones Good build quality, rugged Durable
Bisleri Safe, pure Protection
Tupperware Quality, life time guarantee Reliable, durable
Apple Premium, technology, must have Superior performance, experience
Taj Hotels Luxury service, food, care Memorable experience
Dabbawallas Consistent, timely delivery Trusted service

1.1 Brand

A brand has been defined in many ways by different authors.

• “Promise” Harish Bijoor

• “Strategic Asset” Nirmalya Kumar
• “Functional, Economic & Emotional Value Propositions” Dipak Jain
• “A collection of perceptions held in the mind of the consumer” Susan Fournie4
• “A name, term, design, symbol, or any other feature that identifies one seller's good or service as
distinct from those of other sellers.” AMA
• “A mixture of tangible and intangible attributes symbolised in a trademark, which, if properly
managed, creates influence and generates value” Interbrand6

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A brand stands out in the customers mind and reflects a relationship with the customer, which makes
them remember the brand, but not necessarily purchase the brand. Customers may remember 20
brands of soap but may prefer only one. A brand can differentiate itself from its competitors if it offers
differences that are relevant and meaningful to its targeted consumers. Leading brands can command
premium prices, high margins, better availability and wide customer loyalty. Brands like Audi, Apple,
Rolex command premium prices as targeted customers perceive that they cannot derive the same
benefits from other brands. Firms like Procter & Gamble, Johnson & Johnson, Colgate, Disney, Parle,
Pidilite and Coca Cola market brands that continue to be leaders for over five decades.

1.2 Value Proposition

“Companies should not define themselves by the products they sell, but rather reorient themselves to
their customers’ perspective by defining themselves through the value they produce in consumers’
lives—the “value proposition.” Ted Levitt, Harvard Business School

A brand is a value proposition. Value is the customer’s expectation of a product to satisfy his or her
need. The word ‘expectation’ is important as the customer feels this product will satisfy their need and
hence they purchase the product. Even if the customer is loyal he still believes the product will satisfy
his need every time he purchases and if the product does not live up to his expectations, the customer
may switch brands. Proposition is a promise. So value proposition is a ‘promise of value’ to the
customer and the ‘reason to buy’.

Table Value Proposition

Value Proposition
Functional Economic Emotional
What a product does How a product saves time or How a product makes you
money feel
Performance ROI Style
Quality Ownership Cost Self-actualisation
Reliability Economic value Self-expression
Flexibility Reduces time Control
Durability Reduces cost Freedom
Ease of use Productivity Independence
Compatibility Less errors Reason to belong
Versatility Value for money

Brands based on value propositions (Reason to buy)

Functional Economic Emotional
Nirma Economy

Mont Blanc Prestige, status

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Bata Durability, range

Amul Butter Taste Value for money Indian

Rolex Superior quality Prestige, status

Bisleri Pure Safe

Maruti Performance, service Low ownership cost

Apple Super performance Productivity Desirable, aspirational

Parle G Taste Value for money Nostalgia

Titan Performance Value for money

LIC Prompt settlement Affordable premium Trust

Every brand offers three value propositions- functional, economic and emotional, but their relevance
may differ within each brand. In each brand either one of the three value propositions may be
dominant, or in others, two may be equally dominant, or in some others all three may be equally
relevant.

1.3 Branding

It endows a product or firm with the power of a brand by creating signals that generate powerful
associations. A common brand story or consensus view emerges as all the stories, images, and
associations around a brand converge in everyday social life. These associations are continually
reinforced and ultimately treated as a fact—which creates tangible benefits in the form of significant
brand equity and brand value. Branding helps distinguish Kohinoor Basmati Rice from unbranded
commodity rice, Apple MacBook from laptops, Mont Blanc pens from other pens and Samsung Galaxy
series from other smart phones. For consumers, good branding gives them confidence in their purchase
decision, allows for easier interpretation and processing of information, and ultimately provides higher
satisfaction in use. From a company perspective, branding increases the effectiveness of marketing
programs, enhances brand loyalty, allows higher prices and margins, provides greater leverage with
distribution channels, and creates a significant competitive advantage. The examples quotes in this
reading focus on physical goods or products , but branding can be applied in any category a consumer
chooses. Eg Services (Taj, LIC), stores (Shoppers Stop, Big Bazaar), person (Sachin Tendulkar, Amitabh
Bachchan), place (Goa, Kerala), company (Tata, Infosys), commodity (Kanchipuram Sari, Kolhapuri
chappal).

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2 Brand Identity
A brand typically follows four steps- brand identity, image, perception and position to enter the
customer’s mind and stay there. The brand entry may not result in any purchase but the brand may still
hold a position in the mind. For instance Rolls Royce sells less than 5,000 cars annually but it is
positioned in the minds of at least half the world’s population of 7 billion people as an uber luxury car,
although they will never be able to afford one.

Brand identity
• What a brand wants to convey to its customers
• What the brand does
• What the brand stands for
Brand Image
• What the customer associates with the brand
• Formed through communications, references, usage and company image
Brand perception
• The strong, unique and favourable associations with the brand that a customer easily recalls
Brand position
• The central benefit of the brand located in the customer’s mind

Figure How the brand enters the customer’s mind

Brand

Identity Position

Image Perception

Table Identity, Image, Perception and Position of leading brands

Brand Identity Image Perception Position

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Bisleri Logo, green, bottled Generic for Pure and safe Protection, trust
water bottled water

Flipkart Book e-tailer, cash Simple to use, Reliable, original Convenient e-tailer,
on delivery safe, range credible

Harley HD logo, rumble, Heritage, Iconoclastic, Freedom, self

Davidson heavy bikes American passionate expression

Parle G Glucose biscuit, Glucose biscuit, Nutrition, taste High value, genius
baby photo, yellow heritage
white wrapper

Taj Indian luxury hotel Traditional yet Unique experiences Finest Indian
modern hospitality, Tajness

Natural Natural, fruity Traditionally Preservative free, Natural, fruity, unique

Ice cream made, taste fresh fruits taste

Cadbury Logo, purple colour, Generic for milk Tempting taste, Enjoyable, for every
milk chocolate chocolate celebration occasion

Source: Author’s analysis based on survey by 180 MBA students across India 2011-2012

2.1 Brand identity

“A unique set of brand associations that the brand aspires to create or maintain. These associations
represent what the brand stands for and imply a promise to customers from the organisation.” David
Aaker

The brand identity is what the firm wants to communicate about the brand. As the customer is exposed
to hundreds of brands, each brand tries to enter the customer’s mind. To break the clutter and
effectively enter the customer’s mind, the brand needs to create a relationship with the customer by
communicating what the brand does, what it stands for, the value proposition and its differentiators.

To create the brand identity, brand elements that are easily recognized and recalled, inherently
descriptive, likeable, transferable, adaptable, protectable, persuasive, and meaningful to customers, are
identified and then communicated so as to ensure faster entry into the customer’s mind and help
differentiate the brand. Marketing research and customer interactions help understand and develop the
brand elements. These elements add personality, values, associations, perceptions and aspirations to the
brand, which makes it attractive to customers.

2.1.1 Articulating the brand identity

The brand may use elements or tools to enter the customer’s mind like creating unique colours, logos,
characters, mascots, symbols, slogans or by using atmospherics and celebrities.

2.1.1.1 Brand Elements

• Brand name or distinctive font- Coke- written with a slanting flourish, the Johnson & Johnson font,
Google multi-coloured letters.

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• Logos/ symbols- Nike swoosh, Audi four rings, Dettol sword, Mont Blanc six pointed star, Bacardi
bat (mammal)
• Mascots- Ronald McDonald, Asian Paints Gattu, Air India Maharaja, 7UP Fido Dido
• Slogans- Nike ‘Just do it’, McDonald’s ‘I’m lovin it’, Tata Tea ‘Jaago Re’.
• Themes- Timberland rugged, Rolex precision, Louis Vuitton luxury

2.1.1.2 Atmospherics or Sensories- Using elements that appeal to the five senses

• Sight (visual)- Use distinctive shapes/design- Coke bottle, Hyundai fluidic or use distinctive colours-
Colgate red and white, DHL yellow, Cadbury purple and white.
• Sound (auditory)- The ‘thump’ of an Enfield Bullet bike, the Cadbury and Titan ad jingles, Indian
Premier League (IPL) or the Kaun Banega Crorepati (KBC) tune instantly connect customers to the
brand.
• Taste (gustatory)- The unique taste associated with brands help create and retain customers, like
the extra fizz and spicy taste of Thums Up, the unique tastemaker from Maggi noodles, or the
traditional taste of Natural Ice cream.
• Smell (olfactory)- The distinct fragrance of Mysore Sandalwood Sandal soap or the Brut perfume
fragrance create a strong brand identity and association.
• Touch (tactile)- Mont Blanc pen have a heft in hand, Hidesign leather goods have a unique texture,
FabIndia apparel have a distinct handloom finish.

2.1.1.3 Celebrity- Celebrities or brand ambassadors break the clutter and instantly connect the brand
and enter the customer’s mind faster if the associations of the celebrity and the brand match.
Customers may try the brand as the celebrity endorses it but may prefer it only if it delivers on its
promise. Sachin Tendulkar, India’s best known sports icon, stands for associations like superior
performance, great consistency, patriotism and integrity, hence these associations rub-off positively on
brands endorsed by him like Adidas, Toshiba and Aviva Insurance.

2.1.2 Executing the brand identity through the 4Ps

The brand elements and the sensories are integrated to identify factors that will lead to better
awareness, recognition, brand promise and differentiation, which help create the brand identity. By
activating the consumer touch points, the brand identity is effectively executed through the marketing
mix (4Ps).

• Product- consumers’ brand experiences should meet/surpass expectations, especially performance

• Pricing- communicate perception of value and quality at purchase or over the life of the product
• Place- ensure availability and visibility
• Promotion- integrate marketing communication to effectively communicate the message

2.1.2.1 Executing the brand identity through the 4Ps- Bisleri

The brand associations and core brand values of Bisleri are ‘safe and pure’ due to which their brand
positioning is ‘protection and trust’. To articulate safety, Bisleri emphasizes on their tamper proof,
tamper evident break away seal, which they introduced in India. To articulate purity, Bisleri
communicates the 6 step purification and the double ozonisation in their manufacturing process.
Consumers derive the benefit of protection through purity and safety as they believe Bisleri protects

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them against water borne diseases when they drink water outside home. Bisleri was also the first
mover in the bottled water category in India, hence it is generic to the category, and has been a leader
for over four decades. Together, these associations plus the customer’s experience, consistent product
performance, and Bisleri’s communications help effectively position the Bisleri brand on the twin
platforms of ‘trust and protection’.

2.1.2.2 Executing the brand identity through the 4Ps- Audi

The core brand values of Audi are ‘sporty, progressive and sophisticated’. To articulate ‘sporty’ Audi
emphasizes on its models, whose designs are exciting, and the cars are dynamic and thrilling to drive. To
articulate ‘progressive’ the features incorporated in the car are of industry leading standards and
futuristic and their communication speaks of their heritage of innovation and famous racing car wins. To
articulate ‘Sophisticated’ they use the finest quality material, emphasize on their perfection to detail,
cultured and refined interiors, and model designs with a demanding sense of style. Audi was a distant
third in the global luxury car market, behind BMW and Benz, but leads in few key markets, and is a close
second in major international markets.

2.1.2.3 Executing the brand identity through the 4Ps- Maruti Suzuki

Maruti markets a wide portfolio of brands, including Alto, A-Star, Wagon-R, Ritz, Swift, Dzire and Ertiga
with 3 variants– LK, VA, AX, of each brand. Maruti has expertly differentiated these brands to customers
within a small price band of Rs 4 to Rs 7 lakhs to minimize cannibalization. In this segment Maruti offers
middle to higher end models of Alto, A-Star, Wagon-R, Ritz, Swift and lower models of Swift Dzire and
Ertiga. In all Maruti offers 7 brands and 21 variants in this narrow price band. Each brand is clearly
differentiated based on a unique identity like Alto- economy, Wagon-R- office + outdoors, Ritz- family
car, Swift- classy design, DZire- family sedan and Ertiga for large families and multi-activity. Each brand is
refurbished every 3-5 years to maintain the excitement and appeal to new customers. This way the
product lifecycle is efficiently managed and brands like Versa, Gypsy, Zen, Estillo, Baleno and Esteem
have been pruned if there is a customer disconnect. Besides the above, Maruti offers affordable
vehicles, low maintenance cost, low priced spares, world class service, sales and service touch points in
1500 towns in India, exciting loyalty offers and low EMI for extended periods. These factors helped
Maruti sustain its leadership for over 3 decades and account for 50% of the units sold in the Indian cars
market.

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3 Brand Positioning
3.0 Positioning

Al Ries and Jack Trout, advertising professionals, introduced the term positioning in the 1970s as a
communication tool to reach targeted customers in cluttered markets. They stated that positioning
begins by placing a product in the mind of the consumers who are exposed to continuous ads, but
accept only what is consistent with their prior knowledge or experience. A great brand positioning
strategy need not be more than three words to define a clear, concise, and believable brand position,
which is instantly meaningful to consumers.

Positioning helps to locate a brand in the customer’s mind by outlining the uniqueness of the brand vis-
a-vis competitive brands, its similarity with other brands in the same product category, and the central
benefit why consumers should use the brand. Positioning communicates the central benefit of the brand
to the customer not only through advertising, publicity and other parts of the communication mix, but
also through brand usage, brand experience, user references and word of mouth advocacy.

Apple products are “innovative”, Volvo cars are “safe”, Mercedes Benz bestows “status”, Rolex connotes

CK Prahalad and Gary Hamel, in their book ‘Competing for the future’ identified three positions that
corporate brands can be grouped into. Companies having built these positions can focus on adding
layers from the other two groups.
• Innovation driven companies (Intel, Apple)
• Value driven companies (Toyota, McDonald)
• Customer driven companies (Jet Airways, Taj Hotels)

“luxury watches”, Lodha Builders build “luxury homes” while holidays at Taj Hotels offer “unforgettable
experiences”. How have these brands entered and attained distinct positions in our mind even though
many of us have actually owned or experienced only a few of these brands.

3.1 Corporate Positioning

Michael Treacy and Fred Wiersema, in their book ‘The Discipline of Market Leacer’ identified three
value dimensions and observed that successful firms fall into either one of them.
• Operationally excellent firms, who have economies of scale and are cost leaders in their category,
like the Dabbawallas, and Parle-G.
• Customer intimate firms, who delight customers with their service and cater to their specific needs,
like Jet Airways and Taj Hotels.
• Technologically excellent firms make advanced products using the latest technology, and are
focused on innovation (Intel, Bose speakers).

To sustain their leadership they need to maintain excellence in their best dimension, and meet

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acceptable standards in the other two. So the Dabbawallas also maintain a high level of customer
service, while Maruti Suzuki is an efficient company with over a million cars produced, and Bose has a
good support system in place.

3.2 Repositioning

Due to changing consumer preferences and needs, the sales of a product may decline or plummet, as
consumers switch to other brands. In such cases crafting a new position or repositioning may be the
best course of action. It involves a major change in the elements of the marketing mix by changing the
perceptions about the brand to make it attractive for consumers. Repositioning is difficult to accomplish,
and involves heavy promotional investment.

In 2008, Shoppers Stop, India’s leading fashion and lifestyle retail chain, unveiled its new identity and
upgraded its positioning to a 'bridge to luxury' store. The new logo and tagline, 'Start Something New',
encourage customers to take a step ahead to upgrade their lifestyles and move up to their newfound
aspirations and global ambitions. The new position, ''bridge to luxury'', is articulated by classier stores,
improved atmospherics, a wide collection of international premium brands; and trial rooms, with day
and night lighting options.

3.3 The perceptual map or gap analysis

The perceptual map identifies the perceptions owned by various competitors in the consumers mind.
From among directly competing brands, the determinant attributes or variables are first identified

• Moov was positioned for back pain relief, others targeted multipurpose pain balm segment
• Domino’s offered 30 minutes pizza delivery or free than compete on taste, range and experience
• Bajaj Pulsar’s distinct design was positioned for ‘men’, others communicated mileage and price
through interviews and focus groups. Then by surveying consumer perceptions, the desirable benefits in
the brands are determined. The positions owned by competitive brands in the minds of targeted
customers are plotted across 2 key determinant attributes to create a perceptual map. The map helps
identify weak/strong/vacant competitive positions and the gaps are regarded as opportunities to
position or reposition a brand against its competition.

Figure Perceptual map for IPad

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The perceptual map for IPad 3 conveys that the existing Apple brand IPad 2 is perceived as high in
features and premium price followed by Samsung and Sony. Although there are vacant spaces in the
perceptual map, there is ample scope to position the IPad 3 higher than the IPad 2 on features and
price. This can be done by enhancing the current IPad2 experience with new features and technology
desired by the customers but not provided by any competitor, and charging a premium price than
earlier.

Figure Perceptual Map for Natural Ice Creams

The perceptual map for Natural Ice Creams shows the clear position that the brand enjoys in the
traditional-affordable ice cream space, and how crowded the industrial space is in both the premium
and affordable segments. The position of Natural is well entrenched in the customer’s mind and the
management is so confident about their product, that they do not spend any money to promote the
brand although now the chain has crossed over 100 outlets across 8 states in India. Natural Ice creams

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are only promoted by word of mouth of satisfied customers.

Limitation of the perceptual map is that it does not identify the most potential or profitable
opportunities or positions that appeal to consumers. The perceptual map only identifies the current
positions owned and the vacant spaces available to position the new product but does not convey the
market scope.

3.4 The Value Curve

Value curves are multidimensional unlike the two-dimensional perceptual maps. Here multiple factors
within a category can be compared for multiple attributes based on customers ranking of the preferred
attributes in order of ranking. Customers rank the most important and relevant attributes in the
category, which helps marketers to identify the desired and undesired attributes.

A survey of 1,200 car users in various car segments across India, conducted by 200 MBA students in
Mumbai in Nov-Dec 2010. The key attributes on which different segments prefer car brands were
ranked by relevant car users where 1 was most important and 6 was the least important. Maruti Suzuki
cars rule the small and mid segments and their positioning of Price and Mileage are the key attributes
on which customers prefer cars in this segment, while comfort, design and prestige are least important
for them. So Maruti’s position is desirable to customers and with new introductions and new designs,
Maruti can continue to consolidate their hold on this segment. For the executive and premium
segments, the brand is the most important attribute, while for the luxury segment it is prestige.
However, price and mileage, which are the key segments for the small and mid segments, are least
important attributes for the premium and luxury customers. Thus the value curve can help identify the
key attributes across various segments within the car industry and help marketers effectively position
their cars across multiple segments.

Figure Value Curve of key attributes for preference across different car segments

7
6
5
4
3
2
1
0
Small Mid Executive Premium Luxury
Price 1 1 2 5 5
Mileage 2 2 3 6 6
Brand 3 3 1 1 2
Design 5 4 4 3 3
Prestige 4 5 5 2 1
Comfort 6 6 6 4 4

Source: ‘What matters most’, survey of 1,200 car users across India, Nov-Dec 2010.

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Exercise Value Curve

Reason to Buy
Cars Small Mid Executive Premium Luxury
Price 1 1 2 5 5
Mileage 2 2 3 6 6
Brand 3 3 1 1 2
Design 4 4 4 3 3
Prestige 5 5 5 2 1
Comfort 6 6 6 4 4
Etail Amazon Flipkart PayTM SnapDeal
Price 4 5 4 4

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Convenience 5 5 4 4
Choice 5 4 3 2
Service 4 4 3 3
Experience 5 4 3 2
Consumer Electronics Apple Samsung One Plus Oppo Xiaomi
Premium 5 4 3 2 1
Value 3 4 5 4 5
Economy 1 2 3 4 5
Range 3 5 3 4 4
Service 5 4 3 3 3
Experience 5 4 4 3 3
QSR McDonalds Dominos KFC Haldiram Subway
VFM 5 4 4 5 3
Health 1 1 1 2 4
Taste 5 5 5 5 3
Outlets 3 4 4 3 3
Convenience 5 3 5 5 5
Detergents Surf Ariel Ghadi Rin Tide
Whitest 4 3 2 5 4
Keeps Clothes Soft 5 5 2 2 3
Protects 5 4 3 3 4
Cleans Best 5 5 4 3 3
Value 3 2 5 3 2
Multiplex PVR Inox Carnival
Experience 5 4 3
Premium 5 4 3
Value 4 4 5
Reach 4 3 3
Services 5 4 4

3.5 Crafting the brand position

The perceptual map and the value curve help identify the competitive positions, the vacant unexplored
positions in the market, and the attributes that matter to target consumers. The position is then crafted
by creating a frame of reference which contains the following steps.

Target segment- identify the market segment to be served by the product

Consumer behaviour- consumer considerations in choosing brands- attitudes, preferences

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Nature of competition- direct, indirect, broad competitors offering products satisfying similar needs,
intensity of competition

Points of parity (POP)- product associations consumers view as essential to be part of the category

Points of difference (POD)- product associations unique to the product, that consumers positively
evaluate and believe they cannot find to the same extent in competitors

Brand position- the central benefit which the brand offers, reason to buy

Testing the brand position- test the position on consumers for either of the 2 tests to ascertain whether
consumers believe the brand can deliver on its promise

RUB test- whether consumers find the position relevant, unique and believable OR

2D test- whether consumers find the position desirable and deliverable

Table Crafting the brand position of IPad Air2 and Moov

Crafting the Apple iPad Air 2 Moov Pain Reliever

position

Target segment Apple enthusiasts, innovators, technosavvy, Middle class Indian housewife
professionals

Consumer Price insensitive, must-have, latest seeking Price sensitive, value seeking
behaviour

Nature of Hardware, mobile, internet, software, Intense competition from

competition consumer electronics and technology firms national, local and international
players

Points of parity Apps, gaming, superlative performance, Pain killer

(POP) consistency, legacy, reputation

Points of difference Apple, design, resolution, heritage of Specialist against back pain
(POD) innovation

Brand position Enhanced iPad Air experience and Relief from back pain
performance

Validation of the brand position

RUB

Relevant Consumers seek a better iPad experience Consumers seek relief from
back pain

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Unique No one else claims this position Moov is specific to back pain

Believable Demonstrable evidence and Apple has Moov has delivered for last 3
always delivered on its promises decades

2D

Desirable Product lusted, consumers seek enhanced Back pain is very common in
experience, ‘must have’ housewives

Deliverable IPad earlier models have delivered, iPad Air2 Moov has delivered for last 3
will decades

3.5.1 Target segment

Who are the consumers likely to use the product. What are their perceptions and preferences of about
different brands in this segments. The features of a product or the associations with the company that
are unique should be identified to satisfy the needs of different consumer groups in that category.
McDonalds offers western fast food in their outlets at affordable prices but Kids love McDonalds for the
happy meals, teens for a cool hangout, the youth for its taste, value and the experience.

3.5.2 Consumer behaviour

Within a target segment consumers may have similar demographics (age, income, education) but
different psychographics (lifestyles, preferences, attitudes, values) and behavior (benefits sought, usage,
loyalty) due to which consumption patterns may vary. Hence a deep understanding of consumer
attitudes and preferences towards brands is important in creating a favourable position of the brand.
Some consumers may seek economy, others value, while few others may seek hedonic benefit
(pleasure) or prestige or exclusivity. Consumers who are innovators may opt for the latest Apple
products or Bose technology, irrespective of the price (price insensitive) as they want to be the first to
be seen (innovators) using that product.

3.5.3 Nature of competition

In today’s world, besides direct competitors there are indirect competitors who satisfy similar needs or
broad competitors which are substitutes for the same need. Hence it is important to analyse
competition broadly than narrowly as consumer preferences may be based on benefits sought, than on
features. A budget of Rs 30-40,000 to buy a convergence device could purchase anything from a smart
phone to a tab to a laptop to a desktop. Hence, an Apple IPad may not only compete with other tabs but
also affect sales of major players in laptops and desktops (HP, Dell), mobile phones (Blackberry, Nokia,
Motorola), technology (Intel), software (Microsoft), internet (Amazon, Google), gaming (Nintendo) and
consumer electronics (Samsung, Sony, LG, Toshiba) space.

3.5.4 POP

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The core features of the product establish the category to which the product would belong to. All the
players in that category would have products with similar basic configuration but may differ in features
and benefits. The consumers would slot the product into a specific category based on their
configuration, but purchase the products based on their differentiators and benefits.

For a product to qualify as a Tablet or a Tab, it should possess a slate shape, 7 to 10 inch full touch
screen, 0.5-2 gb RAM, 16/32/64 gb HDD, with internet, email, music, camera, video and movie
capabilities. Optional feature may be a mobile phone. Any product with such features will be considered
by customers as a Tab.

3.5.5 POD

The POD offered by a brand is the most compelling reason/s for a consumer to prefer a brand over other
brands. Strong differentiators are created which ‘benefit’ consumers or solve their problems or offer a
perceptible improvement or a superior alternative to existing brands. Consumers use multiple attributes
to evaluate brands but may finally choose brands based on few key differentiators or in many cases only
a unique differentiator, which they believe they cannot find in competitive brands.

3.5.6 Brand positioning

Based on the POP and POD associations, the brand positioning or the central benefit of the brand to the
consumer is arrived at. The positioning is based on the value proposition offered which may be
functional, economic, emotional or self-expressive benefits. Insights into the consumer’s mind unravel a
compelling or unmet need or a consumer truth which if met, can be a big opportunity area, if identified
correctly. These insights hook the brand into the consumer’s needs and wants, and build a strong brand
connection that positively influences consumer behaviour.

Usually brands are promoted on a single differentiator and the second or third differentiators may be
emotional benefits acquired through credibility and consistency of results. Taj hotels differentiate on the
platforms of luxury and great hospitality but also draw on the ‘trust’ differentiator of their parent, the
Tata group. Apple stands for innovation, but also for great design and a superlative user experience.
Bisleri owns the differentiator ‘protection’ and has added ‘purity’ over the years but by delivering
consistent results Bisleri is also the ‘most trusted’ brand in bottled water.

While consumers prefer a brand on one differentiator they may reject on another differentiator. Apple
products are perceived as well designed and innovative but also as expensive. Louis Vuitton, the world’s
leading luxury brand with a rich century old heritage has a legion of loyal followers who patronise it for
its timeless design and exclusivity but the challenge is to remain relevant to the younger generation who
may prefer more contemporary designers.

3.5.7 Positions owned by leading brands

Most brands own distinct positions in the consumer’s mind while different firms have also claimed
similar positions in the consumer’s mind across different categories. Dettol, Lifebuoy, Good Knight and
Bisleri all lay claim to the word ‘protection’ but in different categories like antiseptic liquids, soaps,

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Brand Central benefit (Position) Value proposition

Dove Beauty Self-expressive

Zara Cool Self-expressive
Cartier Exclusivity Self-expressive
Enfield Bullet Macho Self-expressive
Tata Trust Emotional
BMW Driving pleasure Emotional
Hush Puppies Comfort Functional
Flipkart Ease of use, convenience Functional
Dettol Protection Functional
Dabbawallas Reliable delivery Functional
Nirma Affordable detergent Economic
McDonalds Value for money Economic
mosquito repellants and bottled water as this position is relevant to consumers in their respective
segments. Similarly Tata, LIC, SBI and Colgate mean ‘trust’ in the Indian consumer’s mind.

Table Brand positions and value propositions

3.5.8 Testing the positioning

The positioning is validated to check if the differentiators are clearly conveyed, whether those
differentiators are relevant to consumers and whether the consumers believe that the product or the
company is capable of delivering on its promise. The final positioning is then validated with the
customers either through the RUB or the 2D tests. Eg Timberland, a global rugged outdoor brand.

The RUB test checks whether the positioning is important to consumers (relevant), not claimed by
others (unique) and convincing (believable), if yes, then the positioning is accepted.

Timberland’s positioning of ‘rugged outdoor products’, caters to customers who love the outdoors
(relevant), the positioning is not claimed by other brands (unique), and Timberland products match the
expectations of their customers (believable).

Alternately, the positioning is put through the 2D test where it is tested on the platforms of desirability
and deliverability. Timberland’s products are positioned as rugged which is desired by their consumers,
who love the outdoors and seek tough, durable products. Timberland has a legacy of four decades of
consistently delivering quality, rugged and durable products, and has a loyal consumer base

3.5.9 The positioning statement

The brand positioning statement is a short description of the meaning of the brand in a single sentence
and should ideally include the target consumer, the category and the differentiation. It should be noted
that the positioning statement is only the tagline used in the product promotion and not the brand
positioning. The taglines may change from time to time but the broad positioning of a brand is long
term. The position in the mind of the customer may not be based on the positioning statement or the
tagline alone but also through usage, experience, reference, exposure to the product, company image
etc. Geoffrey Moore, in, ‘Crossing the Chasm’, suggests the following framework for a positioning
statement:

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For (target customers), who must (solve a specific problem), our product is a new (new product
category), that provides (central benefit or better solution), unlike (competitor in new category), we
have (whole product most relevant for you)

Harvard Business School Professors Jill Avery and Sunil Gupta designed the following format for
positioning statements:
For [target market], Brand X is the only brand among all [competitive set] that [unique value claim]
because [reasons to believe].

• Positioning statement of 3 bottled water players addressing 3 distinct target markets with unique
value claims:
• For [upscale consumers looking to make a design statement with their choice of water], Evian is
the only brand among all [bottled waters] that offers [the purest and most distinctive drinking
experience] because [it derives from an artesian source in southern Norway and is packaged in a
stylish, iconic glass bottle].
• For [discerning middle-class consumers looking for an affordable and accessible luxury],
Himalayan is the only brand among all [bottled waters] that offers [an elegant, sparkling, and
refreshing water, with just a hint of zaniness] because [it is naturally carbonated by acquifiers
high up in the Himalayas and features a distinct bottle design].
• For [quality conscious consumers who seek safe bottled water outside home], Bisleri is the
only brand among all [bottled waters] that [offers safety], as [it has a tamper proof tamper
evident seal and purity as it undergoes double ozonization].

Exercise-

Leader brand ________________ and Key competitor_________________________________

Positioning statement of leader

• For [target market], _____________________________________________________

• Brand X is the only brand among all [competitive set] ___________________________
• that [unique value claim] _________________________________________________
• because [reasons to believe]_______________________________________________

Positioning statement of competitor

• For [target market], _____________________________________________________

• Brand X is the only brand among all [competitive set] ___________________________
• that [unique value claim] _________________________________________________
• because [reasons to believe]_______________________________________________

Nokia’s tagline is “connecting people” since the last 20 years, but its position in the customer’s mind is
that of a user friendly, rugged and reliable mobile phone although Nokia has never communicated so.
This position is gained through years of interaction with the brand where the brand has delivered
consistent performance, ease of use, and has survived many falls!

Nike’s ‘Just do it’ slogan was originally conceived to make people believe in themselves and to persuade
them to stay fit by taking to sports or exercise. However Nike’s ads used world class athletes which

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Brand Management MBA Dr Amit Rangnekar

communicated that one of the key reasons for their superlative performances was the use of Nike
products. Nike’s superior products and the celebrity endorsements convinced its customers that
purchasing Nike products would also enhance their performance due to which Nike’s position in their
mind was ‘superior athletic performance’ with the use of Nike products.

Maruti-Suzuki’s tagline is ‘count on us’ which conveys dependability and reliability. However, the
position in the Maruti customer’s mind is that their cars are ‘value for money’ because they are
affordable, offer good mileage, economical spare parts, low maintenance costs, provide excellent
service, and the cars fetch good resale value.

Table Positioning statements or taglines of leading brands:

Brand Positioning statement (taglines)

All Out Macharon ka Yamraaj

Amaron Lasts Long, Really Long, Ting Tong

Audi Vorsprung Durch Technik or Advancement through Technology

Binani Cement Sadiyon Ke Liye

Bingo No Confusion, Great Combination

Center Fresh Zubaan Pe Lagaam

Dairy Milk Kucch Meetha Ho Jaye

Dettol Be 100 % Sure

Domino’s Khushiyon ki Home Delivery

Indigo Airlines On Time is a Wonderful Thing

Louis Phillippe The Upper Crest

Raymond The complete man

4.0 Brand Portfolio Strategies

4.1 Brand Portfolio is a set of all brands, lines, sub-brands a firm offers to customers.

A portfolio of brands can

• Cater to different customer needs- value, economy, status, exclusivity, convenience
• Help attract variety seeking consumers- size, flavours, healthy, natural, faster, durable
• Increase shelf presence- extension of known brands accepted by retailers
• Offer pricing breadth- give consumers occasions to use- Bisleri 250ml to 20 liters
• Help new market entry- existing brand associations will lead to new product trial by consumers
• Economies of
- Production- could be manufactured at existing facility
- Promotion- same consumer may buy for different needs or housewife may buy for the family
- Distribution- extension of known brands better accepted by retailers, wholesalers

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However the brand and its extensions should be clearly targeted and differentiated so as not to confuse
customers or cannibalise sales of own other brands. It is also important to monitor the portfolio
regularly and prune weak and unprofitable brands. Bisleri markets bottled water from 250 ml to 20 liters
but each pack is targeted for a clear segment or occasion to use. The 250 ml targets caterers as this pack
is distributed during weddings and parties, the 500 ml pack targets single users, the 1 liter pack targets
families who share water, the 5 liter pack targets homes who do not have access to proper potable
water and the 20 liter pack targets offices. These are presented at different price points where buying
larger packs will lead to economy. The 250 ml pack may cost Rs 5 or Rs 20 per liter while the 1 liter pack
is Rs 15 per liter and the 20 liter pack is Rs 60 or Rs 3 per liter.

Business Leisure
Business Trip Long Stay Ocean Wild life Palaces
Luxury Premium Taj Wellington Mews Taj Exotica Taj Safaris Taj Palaces

Premium Vivanta
Segments

Mid Price Gateway

Budget Ginger
Occasion to use

Taj Hotels, India’s best known hotel group stands for luxury, grandeur and traditional Indian hospitality
with modern amenities. With over 100 properties including hotels, resorts and palaces across India with
the Taj name, each Taj property offered a different experience, charged different rates and was
positioned differently, which confused customers as to what the Taj name actually stood for. For
instance, the experience at the three Taj five star hotels in Mumbai- The Taj Mahal at Apollo Bunder,
The Taj President at Cuffe Parade and The Taj Land’s End in Bandra- were completely different but all
carried the Taj name. These experiences varied further in Taj properties in other cities, resorts and
palaces across India. Hence Taj reached out to customers in a more targeted manner by creating distinct
identities for its different hotels, resorts and palaces. Taj divided their portfolio horizontally by occasion
to use- business and leisure, and further divided business into short and long stay and leisure into ocean,
wildlife and places. The Taj name was only used to target the Luxury premium segment in India and
abroad. The other Taj hotels were rebranded as Vivanta for the premium segment, Gateway for the mid-
price segment and a new budget segment was targeted with the Ginger name. Each brand offered a
unique and differentiated value proposition targeting different customer segments.

4.2 Brand Extension

When a new product or service is introduced with an existing brand name, the new product is called a
brand extension. If differentiated and executed well, brand extensions can broaden and clarify the brand
meaning. Extensions help add sales by catering to new markets, new needs and new customers.

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As consumers are familiar with the existing brand, they may prefer to try an extension over an unknown
brand. Retailer acceptance and gaining shelf space may be easier for an extension than for a new brand.
Development of an extension product and its development costs and time, will be much lesser and
riskier than for a new product. Can avoid trademark and patenting issues especially for brands marketed
across multiple countries.

Table Brand Extensions

Product category
Old New
Brand name

Old Line extension Category extension

(New SKU, flavours- Mirinda lemon, (Titan Raga, Junior Horlicks)
Rasna mango, Pepsi 1.5L)
New Sub brand New brand
(Gillette Sensor Excel, Ford Ikon Flair, (Maruti Ritz, Tata Nano)
Kellogg Frosties K)

With too many extensions the firm may lose focus and erode its brand identity and equity. If not clearly
differentiated then the extensions may weaken brand associations, confuse consumers, and cannibalise
sales of own brands. Failure of a brand extension may impact the parent brand.

• Parent brand- the existing product/ firm – Gillette, Ford, Cadbury Dairy Milk
• Brand extension- established brand + new product- Gillete Sensor, Ford Ikon, Cadbury Dairy Milk Silk
• Sub-brand- new brand + existing brand- Gillete Sensor Excel, Ford Ikon Flair, Cadbury Dairy Milk Silk
Fruit & Nut
• Line extension- variants of packs, flavours, range, colours- Ford Ikon Flair LX, VX, AX, Gillette Deo in
50 ml, 100 ml packs and Lime, Cologne and Aqua fragrances, Cadbury Dairy Milk Silk Fruit & Nut 69
gm and 160 gm
• Category extension- when the parent brand is used to enter a different product category from that
currently served by the parent brand- Kingfisher Beer to Airlines, Amul Butter to Cheese, Ice Cream,
Milk Powder, Cabdury Bournvita, Cadbury Celebrations gift packs.

4.3 Branding strategies

4.3.1 Product Branding

A product with an unique brand name, own identity, value proposition and set of associations.
Resources and promotion are focused on the brand hence may be expensive. The firm’s name is not
prominent so the brand’s success or failure does not affect the brand.

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4.3.2 Line Branding

A brand concept that is successful is extended across complementary and uncomplimentary categories.
The identity of the main brand is leveraged across other extensions.

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4.3.3 Range Branding

Built on a common association, competence or promise of the main brand or firm. The association is
extended across related and unrelated categories. Amul stands for milk and the co-operative
movement, which is extended to related categories. Maggi is associated with instant and taste due to its
noodles, which is extended to other food related categories.

4.3.4 Umbrella Branding

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A single brand for all the products or categories, drawing upon the strength of the corporate brand. As
the brand is accepted, it is less risky and cheaper than building a new brand, but the association should
strategically fit the extended categories. Godrej stands for trust and reliability, and the corporate master
brand is extended to unrelated categories. Virgin stands for bold and audacious innovation, which they
leverage into other categories without creating any sub brands.

4.3.5 Source/Double Branding

The corporate and the product brand are given equal prominence in communication and branding. It is a
combination of the umbrella and product branding strategies. The Hyundai name stands for good value
cars and fluidic design, and each brand of Hyundai has an unique identity. The corporate and the
product names are given equal prominence like Hyundai Verna. Johnnie Walker & Sons markets its
famous scotch whiskies as Johnnie Walker Black Label, Blue Label, drawing on its corporate values and
unique brand values equally.

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4.3.6 Endorsed Branding

Similar to source branding, but the product brand is given more prominence than the corporate brand.
Cadbury stands for milk chocolates with great taste, which is leveraged over its brands like Dairy Milk
and 5 Star which have their unique identity and features, and which are more prominently displayed.
Nivea has a strong association with quality skin care, which is used to extend the brand into different
skin care, hair care, body care and men’s grooming categories. Nivea does not create sub brands but the
corporate brand is noticeable, although the category name is more prominently displayed.

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The various branding strategies are summarized below with examples

Figure Branding strategies

Branding Strategy Meaning Example

House of brands Draws from unique brand name

Product brand Unique brand, company name not prominent HUL, P&G, Parle, Marico
Line brand Unique brand concept extended to other Saffola, Axe, L’Oreal, Amar
categories Chitra Katha
Range brand Specialisation extended to other categories Amul, Maggi, Honda,
Vaseline
Endorsed brand Brand name prominent, company name less Cadbury, Nivea, Armani,
prominent 3M
Branded House Draws from company name
Master Brand Company name extended to categories, no Godrej, Virgin, Tata,
product brands Whirlpool
Source Brand Company and brand name equally prominent Hyundai, Johnnie Walker,
Audi, BMW
Blended House Branded house strategy but house of brands in some categories. Samsung,
Gillette, Sony

4.3.7 Other branding strategies

4.3.7.1 Co-Branding

Brands that are sold or marketed jointly with other unrelated brands from different categories, to
maximize their individual brand advantages, equity and image. Should be perceived by customers as a
logical fit between the two brands. The idea is to generate more sales from the existing target market
and open additional channels and opportunities. Should ideally reduce the promotional costs and have a
complementary effect. Co-branding should avoid brand eclipse where one brand overshadows the
other. Can lead to negative repercussions of unsatisfactory performance or the risk of overexposure.

• McDonalds- Coke
• Shoppers Stop-Citibank Credit Cards
• HPCL- Jet Airways Credit Cards

4.3.7.2 Ingredient branding

Using another brand to promote own brand by creating an equity for materials, components or software
of suppliers. Ingredient branding strategy is commonly used in consumer electronics.

• Dell laptops with Intel Inside, Multiplexes with Dolby sound system
• Nirlep pans (Tava) with Teflon coating
• Samsung Android phones, Sony digital cameras with Carl Zeiss lens

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5 Brand Architecture
An organizing structure, family tree or hierarchy of the brand portfolio that specifies brand roles and the
nature of relationships between brands and sub brands (Aaker & Joakimsthaler)

Brand architecture is like a soccer team with the football pitch as the market map, and each football
player as a brand playing a major, minor or support role. Hence individual players/brands will benefit
from identity and communication programs

The ideal portfolio Typical market/brand portfolio

Source: Designing brand architecture (Davidson, 2002, portfolio managing matters. Brand Strategy pp 28-29)

Objectives of brand architecture are- creating effective & powerful brands, allocate brand building
resources, create synergy, clarity of product offering, leverage brand equity, and provide platform for
future growth.

5.1 House of Brands or Branded House strategy

Companies are faced with which branding approaches to adopt- house of brands or branded house. In a
house of brands strategy, the company name is not identified and the brand names drive purchases. A
branded house strategy has one unique brand name or company name that motivates purchases and
offers value. Many organizations use a hybrid or variation of one of the two approaches.

5.1.1 House of Brands strategy

• Every product is individually branded, corporate name is not prominent

• Individual brands can extend into new brands /extensions / sub brands
• Easier for different brands to connect to different / adjacent markets
• Costlier to create and establish separate brands
• Brand performance may not affect the firm
• Parle Biscuits - Parle G, Krackjack, Monaco, Milano, Hide & Seek, Cheeselings
• Maruti- 800, Alto, SX4, Swift, Ritz, Dzire, Ertiga
• Procter & Gamble- Ariel, Tide, Whisper, Pantene, Vicks, Gillette

5.1.2 Branded House strategy

• Every brand leverages the corporate brand values, identity and associations
• Also called master brand strategy as it uses the corporate name for every category/product

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• Harvard- Business School, Law School, School of Medicine, Business Review

• Samsung- LCD/LED/Smart TV, Monitors, Cameras, Laptops, Laser Printers, Fridge, AC (For mobile
phones, tablets they create sub-brands like Galaxy)
• Godrej- Property, Consumer Products, Consumer Durables, Interiors
• Luxury car brands like BMW (1,3,5,7 series), Mercedes Benz (S,C,E series) and Audi (R,Q,A series)
use this strategy where they do not create sub brands but models with alpha-numeric names
and leverage strong corporate brand association
• Difficult to extend the brand into categories not associated with the corporate or master brand-
Harvard may not connect to consumer products, or Godrej to apparel, and Samsung to FMCG
• However exceptions are Disney which stands for ‘fun’, and Virgin which stands for
‘flamboyance’, both of whom have extended their brands across over 100 categories
• Since only the corporate brand is promoted, branding costs may be low
• Failure in a category may hurt the master brand

5.1.3 Blended House strategy

• Mix of branded house plus house of brands

• Samsung uses branded house strategy by leveraging the corporate brand across all categories,
without creating any individual brands. But in the mobile phones category it markets its
products as individual brands with extensions like Galaxy, Galaxy Note, Galaxy S, Alpha, Champ,
Corby etc
• Gillette uses a branded house strategy for its shaving creams, deodorants etc but within razors it
has created great brands like Sensor, Fusion, Guard, Vector, Mach etc

Setting the context

• Brand portfolio- all brands, subbrands, cobrands; add /extend/ delete brands
• Portfolio roles of each brand-
• Strategic Role- important source of future profits/vision- Virgin Air, Tata indicom
• Linchpin Role- brand provides key basis for customer loyalty. First Citizen Club for Shoppers Stop,
J&J baby range
• Silver Bullet- brand positively influences image of another brand- IBM Thinkpad boosted public
perceptions of IBM, Nano of Tata Motors
• Cash Cow- significant customer base may not require high level of investment but generates funds to
be invested in strategic, linchpin, silver-bullet brands. Parle G, Nivea Creme

Design Your Portfolio Graphics

• Visual representations across portfolio of brands- logos, packaging, symbols, product design, layout
of print ads, taglines- look and feel of each brand presentation
• Do visual representations send right signals of relationships between brands in portfolio?
• Exercise: put all graphic representations of brand portfolio (logos, packs, mascots) on paper. Do
they convey consistent message and support brand portfolio’s structure

Develop Brand Portfolio Structure

• Brand portfolio structure is a way of grouping brands to clarify logical relationships

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• Brand hierarchy tree for Indian Hotels- Taj Hotels, hallmark of luxury and service
• But Taj tag was on every group hotel, guests were confused what brand Taj stood for?
• Differentiated by quality & service standards , hive off hotels not fitting architecture

Specify the Product-Market context of each brand

• Endorser brands- Brand endorsed by parent or corporate brand where parent brand is identified
with the brand, but, endorsed brand is given greater visual weight than parent brand. The
corporate/parent brand lends credibility or assurance to endorsed brand without overpowering it
with its own associations. Cadbury’s Dairy Milk / Five Star. Xylys, Swiss Made- Brought to you by
Titan
• Subbrand- A new brand combined with a product or corporate brand. The subbrand can make the
parent brand more vital and relevant to a new consumer segment or within a new product category.
Ford Ikon- Flair, Hyundai Getz- Prime, Gillette Sensor Excel
• Benefit brands- branded features, components, or services that augment the brand offering- Maruti
Ritz with Kappa engine
• Cobrands- combine your brand with brand/s from another firm to create a unique offering-
Citibank-Jet Platinum credit cards or highlight an ingredient of another firm in your brand
communication- HP laptops with MS Office or Intel inside, Dolby system in Multiplexes, Teflon
coating in Pans, Carl Zeiss in mobile cameras

Brand Hierarchy Tree

Taj Brand Architecture

Exercise- clarify relationships among brands by drawing a “brand family tree”.

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Titan Brand Architecture

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6 Branding Models
6.1 Brand Personality Scale (Jennifer Aaker)

Brand personality- the human characteristics or traits that are associated with a brand

As we assess the personalities of people surrounding us, we also tend to assign personality traits to
objects, like brands. Brand personality traits attract customers as they recognize themselves in those
brands or those traits present in that particular brand, and hence prefer or are loyal to that brand.

Marketers also assign and create specific personalities to/for brands so that they can attract customers
who possess those personality traits or seek those traits in a brand or see those brand traits in
themselves. Brands that have little differentiation in terms of functionality can carve out a clear
differentiation by appealing to the brand personality (psycho-social-emotional).

Aaker, after studying 37 American brands, identified the five dimensions of brand personality- sincerity,
excitement, competence, sophistication and ruggedness. Each dimension was further defined on typical
facets or personality traits.

Table The five dimensions of brand personality

Sincerity Excitement Competence Sophistication Ruggedness

a Down-to-earth: Daring: trendy Reliable: Upper class: Outdoorsy:

firmly grounded, and exciting meticulous, attractive, sex manly, wild
family-oriented, careful, appeal
narrow-minded hardworking

b Honest: sincere Spirited: cool Intelligent: Charming: Tough:

and genuine and young content-driven, feminine, soft rugged,
(pure) social rough

c Wholesome: Imaginative: Successful:

original (not fake) remarkable and leadership, self-
special confidence

d Cheerful: Up-to-date:
sensitive and independent and
friendly contemporary

Examples by industry

Cars Maruti Suzuki Audi BMW Benz Mahindra

Mobiles Sony Samsung Micromax Apple Nokia

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Clothes Raymond Arrow Zodiac Louis Phillipe Levis

Shoes Bata Puma Adidas Nike Woodland

6.2 Brand-Identity Prism- J.N. Kapferer

Kapferer identified the 6 aspects of brand identity and divided them over two dimensions.
Kapferer posited that the 6 aspects come to life when the brand communicates with the
consumer. Strong brands weave all 6 aspects into an effective whole, and offer a concise, clear
and appealing brand identity. A firm can analyse whether the brand identity the company
intends to offer to the consumer, is actually what the consumer internally feels when he
interacts with the brand, and also whether the brand– consumer relationship outwardly reflects
the same brand identity. The Brand Identity Prism enables brand managers to assess the strengths
and weaknesses of their brand using the six aspects of this prism. Firms can take corrective
measures to fine tune its identity or communicate effectively based on the analysis.

Kapferer’s Brand Identity Prism (1997)

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The 6 aspects of brand identity

1. Physique
The brand’s physical features, evoked in the consumer’s minds, when the brand name is
mentioned. The core or purpose or basis of the brand, what it does, how it is recognised and
differentiated. Eg Benz- luxury automobiles, Rolex- luxury watches, Nokia- reliable mobile
phones, Levis- rugged jeans, comfortable fit.
2. Personality
The brand’s characteristics or personality traits, if it was a human. The soul of the brand. The
brand personality attracts consumers who seek these traits in a brand, or consumers have
those traits in themselves hence are attracted, or they aspire for those traits and through this
brand can achieve those traits. The brand’s personality can be communicated through design,
features, performance, imagery (brand identity tools and endorsers), and packaging. Michael
Jordan and Swoosh for Nike, Apple design and innovation.
3. Culture
The system of values and basic principles on which a brand links its firm to customers. Country
of origin or the brands culture resonates with customers. Audi and BMW are German, Coke and
McDonalds are American, Amul and Tata are Indian.
4. Relationship
Every brand symbolises a relationship between the customer and brand which is expressed when
they are together.
5. Reflection (of the consumer)
The values of the stereotypical brand user becomes the source for identification of the brand
although the target segment could be much broader. The reflection of Pepsi would be college going
kids with values like fun, sporty and friendly but the target segment could be youth including
children and the young working population.
6. Self-image
The mirror the target group holds up to itself. In developing the brand identity, firm should factor in
this dimension as a deep understanding of the underlying intrinsic drivers of consumers can help
the firm communicate a compelling reason to buy the brand. A Porsche driver will think others will
perceive him as rich because he can afford such a flashy sports car. A Nike product user perceives
self as sporty even if he does not actively play any sports. This knowledge helps firms create its
image on the basis of its brand identity.

2 These six aspects are divided over two dimensions:

a. The constructed source vs. the constructed receiver: a well-presented brand has to be able
to be seen as a person (constructed source: physique and personality) and also as the
stereotypical user (constructed receiver: reflection and self-image).

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b. Externalisation vs. internalisation: a brand has social aspects that define its external
expression (externalisation: physique, relationship and reflection) and aspects that are
incorporated into the brand itself (internalisation: personality, culture and self-image).

Illustration of Kapferers Brand Identity Prism

• 6 personality & physical facets define brand identity
• Helps marketers gauge brand identity, provide answers to questions like- If the brand was a
person, how would he look? What traits would he have? Warm, cold, aggressive,
approachable or smart?
• Knowing identity helps design strategy, positioning & affects marketing collaterals
• Physical facet, brand relationship and customer reflection are externalization factors, rest
represent internalization
Physique Core, central purpose, foundation
What is the product, what does it do, how does it add value, fill gaps
Titan and Nokia performance, Head & Shoulders dandruff
Personality Soul, what the brand would be if it were a person, personality traits
Disney fun, Woodland rugged, Raymond well-groomed man
Reflection External mirror, how target identifies himself wrt brand
Brand reflects customers’ image outward, image of buyer using brand
Lux- beauty, Pepsi young, Thums up adventurous
Consumer Internal mirror, consumers attracted to brands where they see own traits
mentalisation Self image, how the targeted identifies brand wrt self, inner relationship
Nike- athletic, sporty, Enfield Bullet- armed forces
Relationship Intangible brand and consumer connect, exchanges, experiences
How should brand be seen by customers in marketing communication?
Nokia reliable friend
Culture Culture spawns brand values and principles which bind customers
Strong dimension, differential, internalises in customer’s conscience
VW- German engineering, Amul- Indian, HSBC World's local bank
Case- Brand identity of Adidas & Nike

Nike Adidas

Promo strategy focus on individual athletes Sponsors teams & global events

Physique Sports & fitness Sports & fitness

External

Relationship Sponsorship, ethics Quality & heritage

Reflection Aggressive, provocative, in-your- Sportsmanship, team player, strong

face work ethic
Inter

Personality Michael Jordan, Tiger Woods Traditional, conservative, collective

nal

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Culture American, Just Do It European, traditional

Self-Image Cool, trendy Competitor, competent

Key differences between the two companies are at the cultural and the self-image level.

• Adidas stands for European culture, traditional, conservative, collective & competent
• Nike symbolises American way: individual & aggressive- Michael Jordan, McEnroe
• Adidas connected to positive emotions, more to competing than to winning
• Adidas- challenging oneself is exciting; winning is reward, not reason for playing well
• Adidas personality reflects true sportsmanship, good team player & strong work ethic.
• Nike has a cool attitude, You don’t win silver, you lose gold, winning is paramount

Nike Adidas
Picture of Sender Picture of Sender
Physique: Personal ity:
Physique: Personal ity: Sports and Tradi tional , conserva-
Sports and Like Jordan, fitness ti ve, collective
Externalization

Internalization
fitness Woods…
Externalization

Internalization

Re lationshi p: Culture:
Re lationshi p: Culture: Quali ty and European,
Sponsorship, American, heritage Traditional
ethi cs Just do It!
Reflection: Se lf-Image:
Reflection: Se lf-Image: true sportsman- Rel ates more to
Aggressive, Cool, I am an ship, A good team competing t han t o
provocative, ”Athlete ” player, strong work winning
in-your-face ethic
Picture of Recipient
Picture of Recipient

6.3 Keller’s Brand Equity Pyramid- From brand salience to brand resonance

Brand Guru Kevin Keller said brand resonance is characterized by strong connections between the
consumer and the brand. Brands with strong resonance benefit from increased customer loyalty and

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Brand Management MBA Dr Amit Rangnekar

decreased vulnerability to competitive marketing actions. The brand should ensure that the customer
has the right experiences to create the right brand knowledge.

Building blocks- structure to build brands with customers

• Salience- consumer’s brand recall in a purchase situation- depth & breadth of brand awareness
• Performance- What a brand does to meet customers' functional needs- intrinsic properties
• Imagery- Think abstractly than physically about brand, intangibles- extrinsic brand properties
• Judgments- Customer brand evaluation (performance+ imagery association)- brand opinions
• Feelings- emotional brand response/ reaction (mild/intense; +/-, or experiential / enduring)
• Experiential feelings (warmth, fun and excitement)- immediate & short-lived
• Enduring feelings (sense of security, social approval, self-respect), private, of day-to-day life
• Resonance- Intense, active loyalty- customers feel a connect to brand, will miss it if it went away
• Nature of relationship, extent to which customers feel they are “in sync” with a brand
• Behavioural loyalty- repeat purchase rates
• Attitudinal attachment- intensity or depth of psychological bond customers have with a brand
• Active engagement- level of activity engendered by this loyalty
• Sense of community- extent to which customers seek brand info, events, loyal customers

Figure Keller Consumer based Brand Equity Pyramid or Brand Resonance Pyramid

Building resonance involves a series of steps

• Identity- Who are you- consumers begin to understand what a brand stands for, means
• 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.

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• Meaning- What are you- consumers link in/tangible associations, understand PoD & PoP The second
stage is meaning. Here, consumers begin to understand points of difference and points of parity
such as performance and reliability.
• Response- What about you- judge brands on credibility, expertise & trustworthiness
• 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.
• 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.
• Relationships- What about you and me- How to connect, create intense, active loyalty
• The final stage is resonance, or intense, active loyalty. This is where customers feel a strong
connection or sense of community with the brand and they would miss it if it went away.
•
There are brands like Surf, Levis, Samsung, Nokia which are extremely popular with very loyal customers
which have high salience, but such brands have low resonance. Brands like Enfield Bullet, Apple and Old
Monk have high salience and high resonance as they have customers who have intense active loyalty
towards the brand and exhibit their loyalty publicly in an extra ordinary way. The brands with high
resonance are not expensive or exclusive but have customers who resonate with the brand and revere
and highly respect the brand hence advocate the brand at every stage.

Table Brands with Salience and Resonance

Brand High Salience High Resonance

Surf Yes No
Levis Yes No
Enfield Bullet Yes Yes
Old Monk Yes Yes
Nokia Yes No
Samsung Yes No
Apple Yes Yes

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Examples

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7 Brand Equity
Brand equity is a set of brand assets & liabilities linked to a brand that add to or subtract from
the value provided by a product / service to a firm and/or to that firm’s customers. (Aaker)

From the firm’s viewpoint- Brand equity is the value of the brand to the firm in monetary terms.

Eg The brand value of Coke is $100 billion while the annual sales of the company is only around
$40 billion, hence the brand is a strategy asset for the company.

From the customer’s viewpoint- Brand equity is the differential in a customer’s mind that
makes him prefer one brand over another.

Eg All toothpastes perform the same function, but Colgate has a 50% market share in India.
Colgate’s consumers believe Colgate offers superior benefits in oral care which other
toothpastes do not offer, and hence they prefer Colgate. This strong loyalty helps Colgate
command a premium over other brands, ensures wide availability, facilitates new extensions in
tooth pastes and oral care segments, and its consumers strongly advocate Colgate to other
consumers.

Building Brand Equity

• The marketer’s challenge in building a strong brand is to ensure customers have the right type
of experiences with products and services and their marketing programs create the desired
brand knowledge structures for the brand.
• Customer knowledge drives the differences that manifest themselves in brand equity
• Value may be reflected in how consumers, think, feel, and act wrt the brand as well as the
prices, market share, and profitability that the brand commands for the firm
• Marketers and researchers use various perspectives to study brand equity
• Customer-based brand equity is the differential effect that brand knowledge has on consumer
response to the marketing of that brand
• +ve customer-based brand equity- when consumers react more favorably to a product & the
way it is marketed when the brand is identified, as compared to when it is not.
• -ve customer-based equity- when consumers react less favorably to marketing activity for the
brand under the same circumstances.

9.1 Aaker’s Brand Equity model

This model outlines the brand’s equity and provides insight into the relation between the
different brand equity components and performance of the brand.

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Figure Aaker’s Brand Equity model

Source: Managing Brand Equity: David Aaker1991

Brand Equity components:

Brand loyalty: the extent to which consumers are loyal to a brand, and leads to:
- Reduced marketing costs, as retaining existing consumers is cheaper than converting new
- Trade leverage- loyal consumers and fast moving products are a stable source of revenue
- Attracting new customers- convinced consumers advocate brand, create new consumers
- Time to respond to competitive threats- loyal consumers do not switch easily
Brand awareness: extent to which a brand is known among potential customers segment
- Anchor to which associations can be attached, to influence brand awareness
- Familiarity and liking, consumers spread brand awareness
- Signal of substance/ commitment to a brand.
- Brand salience- top of the consumer’s mind during the purchase process
Perceived quality: extent to which a brand is perceived to provide good quality
- The quality offered by the brand is a key reason to buy it
- Level of differentiation/ position in relation to competing brands
- Price or the premium commanded is considered as a quality indicator
- Consumers perceive brands to be of a higher quality if widely available
- Consumers perceive line/ brand extensions as a sign of brand acceptance and popularity
Brand associations: features, characteristics and benefits, consumers associate with a brand
- The extent to which a brand association is ‘retrieved’ from a consumer’s mind

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- How much consumers perceive associations to differentiate brand from the competition
- How much the brand associations influence the buying process
- The extent to which brand associations create positive attitude/ feelings
- The number of brand extensions, add to the brand associations
Assets: patents, IPR, technology, integration, design, reach, backward linkages and intellectual property
rights, relations with trade partners, and airlines' landing slots (the more pro- prietary rights a brand has
accumulated, the greater the brand’s competitive edge in those fields)

Model limitation: This model does not make a strict distinction between added value for the customer/
consumer and added value for the brand owner/ company.

Brand equity drivers- creating right brand knowledge structures with right consumers, 3 key
drivers:
• The initial choice for the brand elements or identities making up the brand
• Product, service, accompanying marketing activities & supporting marketing programs
Other associations indirectly transferred to the brand by linking it to some other entity

Measuring Brand Equity Across Products and Markets

What measures will be most effective in evaluating and tracking brand equity over products
and markets? The Brand Equity Ten, outlines ten sets of measures grouped into five categories.
The first four categories represent customer perceptions of the brand along the four
dimensions of brand equity—loyalty, perceived quality, associations, and awareness. The fifth
includes two sets of market behavior measures that represent information obtained from
market- based information rather than directly from customers.

The ability to set objectives and measure results are the hallmarks of successful managers. But
measuring these intangible assets like brands, information technology, and people are
extremely difficult.

Within a brand context the 10 measures should be tracked which are summarized in the table,
but the measurement set should be adapted to include brand-specific information. The
associations/differentiations should also consider brand-specific elements and the functional
benefits, brand personality measures, and organizations can all be tailored to a brand context.
The elements of the brand targeted by the communication program should also be part of the
measurement system. Eg within shampoos, Clinic Plus will monitor benefits like overall
effectiveness, Pantene will monitor benefits like healthy hair, while Head & Shoulders will
monitor relief from dandruff.

The conceptualization of brand equity at the level of measurement and the development of
specific measures should provide a missing ingredient for those who would build and nurture
brands.

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How Brand Equity Generates Value (Aaker)- Illustration Titan

Brand equity Brand equity What it means Illustration- Titan

components metrics
1 Loyalty Price premium What a consumer is willing Titan products deliver
measures to pay for benefits he feels performance at value prices,
he gets only in this hence customers trade up to
products over premium Titan offerings
competitors, the trade-off
Satisfaction / I would buy this brand the Satisfied customers gift Titan
loyalty next time, recommend to on occasions and advocate the
others brand strongly
2 Perceived Perceived This brand has high quality Titan has credibility as it
quality / quality and delivers it consistently consistently delivers on its
Leadership as compared to promises
measures competitors
Leadership This brand is a leader, Titan products command
popular, widely accepted respect and loyalty, dominant
leadership
3 Association / Perceived value This brand provides VFM Titan offers high quality
Differentiation products at affordable prices,
measures high perceived value
Brand This brand has a distinct Titan’s brand personality is
personality personality, which I have, sincere, aspirational,
aspire for or which this competent, connects to
brand will bestow on me customers who seek or identify
with these traits
Organisational The organisation which Parent, Tata’s image is trust,
associations/ makes this brand is trusted nation builder, which is
Differentiation and credible. This brand is leveraged over Titan, who has
different / similar from/to consistently delivered for 4
competing brands decades
4 Awareness Brand I know what this brand Titan enjoys high salience and a
measures awareness does, offers, stands for sense of belonging with
customers
5 Market Market share More customers prefer 60%+ national market share,
behaviour this brand loyalty, wide availability, brand
measures preference
Price and Average brand price Titan offers full product range
distribution divided by average brands at all price points, for all
indices in product class. %age of occasions, across all segments.
stores carrying the brand Titan has exclusive and multi
and %age of people having brand outlets with highest
access to the brand reach across India
Source: David Aaker California Management Review Vol 38 No 3, Spring 1996

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