What is a brand ?

A traditional scenario of market

Company A
Company B

Product / services


Company C

In a traditional market scenario, the company is catering to the consumer. The number of competitors are small. In these markets the companies can come with advanced technologies and other strategies to capture more market share. (The size and power of the players is important.)

What is a brand ?

Company A Company B Company C
Product / services


In complex markets, the differences between companies are not much. The companies can not differentiate much themselves from others on the basis of quality and technology etc. factors as all the companies are competent enough. This scenario explains the need for the differentiation for the companies.

What is a brand ?

Branding is an effort to give a unique identity to the company’s products and create emotional associations with consumers. It is a form of marketing. A brand is a set of associations that are linked to a product range, a division, or company. These associations reside in the memory of customers. These associations help customers understand what the brand or company is, why it is potentially relevant to them, how it is different or similar to other products made by the company, and how it is similar or different from competitor’s products.

• One definition of a brand is as follows: • “A name, term, sign, symbol or design, or a combination of these, that is intended to identify the goods and services of one business or group of businesses and to differentiate them from those of competitors”. • Interbrand - a leading branding consultancy - define a brand in this way: • “A mixture of tangible and intangible attributes symbolized in a trademark, which, if properly managed, creates influence and generates value”.

What is a brand?

The meaning of brands
• Brands are a means of differentiating a company’s products and services from those of its competitors. • There is plenty of evidence to prove that customers will pay a substantial price premium for a good brand and remain loyal to that brand. It is important, therefore, to understand what brands are and why they are important.

Integrity of Brand Product Packaging


Product A Product B



A brand is a promise. A promise to achieve certain results, deliver a certain experience, or act in a certain way. A promise that is conveyed by everything people see, hear, touch, taste or smell about your business.


• McDonalds sums this up nicely in the following quote emphasizing the importance of brands: • “…it is not factories that make profits, but relationships with customers, and it is company and brand names which secure those relationships”

1. Coca-Cola

• “If Coca-Cola were to lose all of its production-related assets in a disaster, the company would survive. By contrast, if all consumers were to have a sudden lapse of memory and forget everything related to Coca-Cola the company would go out of business.” • Coca-Cola

Brand as an Asset
• “If Coca Cola lost everything except for ‘the formula’ and its brand name , it could walk into any bank in the world and get $100 billion loan to start from the scratch”
Fortune Magazine

From Products to Brands


 Awareness  Risk Reducer  Provides Information  Provide Symbolic Consumption


Module 1 - Stage 2


The Cola Wars: Energy Vs. Peace

Branding gives the seller several advantages
• Seller’s brand name and trademark provide legal protection of unique product features • Branding gives the seller the opportunity to attract a loyal and profitable set of customers. • Branding helps the seller segment markets. • Strong brands help build corporate image, making it easier to launch new brands and gain acceptance by distributors and consumers.

Benefits of Branding TO A BUYER
• Help buyers identify the product that they like/dislike. • Identify marketer • Helps reduce the time needed for purchase. • Helps buyers evaluate quality of products especially if unable to judge a products characteristics. • Helps reduce buyers perceived risk of purchase. • Buyer may derive a psychological reward from owning the brand, IE Rolex or Mercedes.

• What factors are important in building brand value? • Professor David Jobber identifies seven main factors in building successful brands, as given next:

• Quality is a vital ingredient of a good brand. Remember the “core benefits” – the things consumers expect. These must be delivered well and consistently. The branded washing machine that leaks, or the training shoe that often falls apart when wet, or a watch which needs frequent adjustments will never develop brand equity. • Research confirms that, statistically, higher quality brands achieve a higher market share and higher profitability than that of their inferior competitors.

• Positioning is about the position a brand occupies in a market in the minds of consumers. Strong brands have a clear, often unique position in the target market. • Positioning can be achieved through several means, including brand name, image, service standards, product guarantees, packaging and the way in which it is delivered. In fact, successful positioning usually requires a combination of these things.


Defining Your Brand

Positioning Statement
Fris Vodka Skandia is made from a special, freeze-distillation process that results in greater body and a smoother and more satisfying taste when served as cold as possible.

Physical Product Difference

Defining Your Brand

Positioning Statement
Bella Sera is the Italian wine that everyone is talking about. Imported from Italy, Bella Sera means “beautiful evening” and offers wines that capture the relaxed, authentic and welcoming essence of Italy.

Communication Difference

Repositioning • Repositioning occurs when a brand tries to change its market position to reflect a change in consumer’s tastes. This is often required when a brand has become tired, perhaps because its original market has matured or has gone into decline.

• Communications also play a key role in building a successful brand. We suggested that brand positioning is essentially about customer perceptions – with the objective to build a clearly defined position in the minds of the target audience. • All elements of the promotional mix need to be used to develop and sustain customer perceptions. Initially, the challenge is to build awareness, then to develop the brand personality and reinforce the perception.


First-mover advantage • Business strategists often talk about firstmover advantage. In terms of brand development, by “first-mover” they mean that it is possible for the first successful brand in a market to create a clear positioning in the minds of target customers before the competition enters the market. There is plenty of evidence to support this.

Long-term perspective
• The need to invest in the brand over the long-term is essential. Building customer awareness, communicating the brand’s message and creating customer loyalty takes time. This means that management must “invest” in a brand, perhaps at the expense of short-term profitability.

Internal Marketing
• Finally, management should ensure that the brand is marketed “internally” as well as externally. By this we mean that the whole business should understand the brand values and positioning. This is particularly important in service businesses where a critical part of the brand value is the type and quality of service that a customer receives. • Think of the brands that you value in the restaurant, hotel and retail sectors. It is likely that your favorite brands invest heavily in staff training so that the face-to-face contact that you have with the brand helps secure your loyalty.

An Effective Brand Name
● Is easy to pronounce ● Is easy to recognize and remember ● Is short, distinctive, and unique ● Has a positive connotation ● Reinforces the product image ● Is legally protectable

Branding Policies
• First question is whether to brand or not to brand. Homogenous products are difficult to brand. Branding policies are: • Individual Branding: Naming each product differently P&G, facilitates market segmentation and no overlap. • Overall Family Branding: All products are branded with the same name, or part of a name, IE Nokia, promotion of one item also promotes other items. • Brand Extension Branding: Use one of its existing brand names as part of a brand for an improved or new product, usually in the same product category. 75% new products are brand extensions!!

Brand image
• “Brand image” refers to the set of beliefs that customers hold about a particular brand. These are important to develop well since a negative brand image can be very difficult to shake off.

Communicating Your Brand

Brand Image
Brand image is everything. It’s the sum of all tangible and intangible traits consistently communicated. • Ideas, beliefs, values, culture • Name, symbol, packaging • Advertising, sales materials, web site Brand image may be the best, single investment a company can make.

“Image is everything” –Andre Agassi





• Other Way – Corporate brand – Family Brand – Individual Brand – Modifier

• Sometimes brand hierarchy trees can capture the brand portfolio structure. The brand hierarchy tree structure looks like an organization chart with both horizontal and vertical dimensions.

• The horizontal dimensions reflect the subbrands and endorsed brands that reside under a brand umbrella. The vertical dimension captures the number of brands and subbrands that are needed for different segments of the market.

• Brand Hierarchy Tress: Brand family
Colgate Toothpaste Colgate Toothbrush Colgate Dental Floss Colgate Mouthrinse




Diamond Heads

The wild ones

Individual Brands Versus Family Brands
Individual Brand
Using different brand names for different products.

Family Brand

Marketing several different products under the same brand name.

2 Microsoft






8. Disney


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