Branding in Fashion and Luxury

Session 13

One word – two meaning


Recognizable identity, name, logo or other symbol which acts as a means of communication between organizations & conusumers

Particular business model in which a company creates desirable products and utilizes third-party channels to distribute them

A brand has grown to mean much more than a logo. Branding begins with the consistency of presentation that becomes the identity of a company. Beyond this it represents a consistent value system that a company presents to the world and that is seen to be that company’s way of doing things. On this branding ladder, the challenge is to move beyond the graphic symbols and metaphors to get to the more difficult cultural uniformity that customers and potential customers recognize and value.

colourings. However the two companies regularly obtain a 30% premium on their competitors.Why Should We Be Interested In Branding? Two companies whose products are virtually indistinguishable. This is because Coca-Cola and Pepsi-Cola have persuaded us that the phosphoric acid. the H2O. the two companies compete in a large market in which there are dozens of competitors. flavourings. . sugar and what ever else they throw into the dark sticky brew is better than that mixed by others and indeed better than simple H2O itself. In fact.

1 brand in the world. if the test is not 'blind' and the tasters know which beverage is which. The first shape that was registered is the coca cola bottle. they prefer the taste of Coke over Pepsi! That is the emotional power of a brand.What is a brand ? What a brand means to common person ? In 'blind' taste tests. The Coca-Cola brand has the power to actually change an individual's taste! Coca-cola is the no. people prefer the taste of Pepsi over the taste of Coke. However. .

B2C Branding Consumers are more numerous and diverse. Most contract clothing manufacturers do not brand themselves to consumers and their products are sold with the retailer’s brand logo on them through the retailers’ own stores.B2B Branding Customers value quality and reliability in the service provided. would not know of the PR agency involved. as opposed to conspicuous image. End user fashion consumer who buy client’s products. Likely to be less loyal Demand a “badge” that can be worn conspicuously .

the company is catering to the consumer.What is a brand ? A traditional scenario of market Company A Company B Product / services Consumer Company C In a traditional market scenario. (The size and power of the players is important. In these markets the companies can come with advanced technologies and other strategies to capture more market share.) . The number of competitors are small.

the differences between companies are not much. factors as all the companies are competent enough. .What is a brand ? Company A Company B Company C Product / services Consumer In complex markets. The companies can not differentiate much themselves from others on the basis of quality and technology etc. 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. how it is different or similar to other products made by the company. or company. . and how it is similar or different from competitor’s products. These associations reside in the memory of customers. It is a form of marketing. a division. why it is potentially relevant to them. These associations help customers understand what the brand or company is. A brand is a set of associations that are linked to a product range.

Marketing Brand Company Consumer Design .What is a brand ? Branding is a combined effort of the company which is projected to the consumer.

while entering new lucrative markets. thus providing clues that simplify consumers’ choice. which ensures consumers’ loyalty to the brands. (3) Brands create aspirational lifestyles based on these consumer relationships. Associating oneself with a brand transfers these lifestyles onto consumers. lifestyles and values allows brand owners to charge a price premium for their products and services. . (2) These added emotions and trust help create a relationship between brands and consumers. relationships. (4) The branded lifestyles extol values over and above the brands’ product or service category that allow the brands to be extended into other product and service categories. which otherwise are barely distinguishable from generics. Thus saving companies the trouble and costs of developing new brands. Brands add emotion and trust to these products and services. efficacy. assurance and care. reliability. (5) The combination of emotions.What is a brand ? (1) Products and services have become so alike that they fail to distinguish themselves by their quality.

. hear. deliver a certain experience. touch.Integrity of Brand Product Packaging Websites Product A Product B Company logo Advertisements A brand is a promise. or act in a certain way. A promise to achieve certain results. A promise that is conveyed by everything people see. taste or smell about your business.

Methods of expressing a brand .

How is branding physically applied? 1. Personal 7. On the outside or inside of the garment/ product 2. Transport 5. Printed communications 4. Packaging when garment is sold 3. All advertising and publicity 6. Sound 8. Retail outlets .

What is in a name? The name: refers to the company or product name that is used to articulate the brand. E. A signature: is often used in fashion & luxury to reference a distinctive designer who may not have the size or level of recognition to be a significant brand. A unique product attribute: a distinctive product attribute inevitably has the visible capability to convey brand image and values but is more likely to do so through the evolution of company’s history rather than as a planned tactic such as logo. A logo: is another expression of a company’s brand name. Burberry check .g.

Colour and Sound AIRTEL music .

It is ensures that all brand activity has a common aim.Brand Positioning In marketing.can it be delivered constantly across all points of contact with the consumer ? •Is it helpful for organization to achieve its financial goals ? •Is it able to support and boost up the organization ? . competitors ? •Is it significant and encouraging to the niche market ? •Is it appropriate to all major geographic markets and businesses ? •Is the proposition validated with unique. directed and delivered by the brand’s benefits/reasons to buy. Brand positioning must make sure that: •Is it unique/distinctive vs. Brand positioning refers to “target consumer’s” reason to buy your brand in preference to others. appropriate and original products ? •Is it sustainable . is guided. brand. or organization. and it focuses at all points of contact with the consumer. positioning is the process by which marketers try to create an image or identity in the minds of their target market for its product.

Armani and Mercedes Karl Lagerfeld designed for H&M’s Autumn Winter Line . e.Brand Positioning A brand image and message must make sense to the customers. who seek reassurance that is relevant to their needs and aspirations.g. Customer Loyalty A company’s brand positioning may shift slightly from its original one through co-branding. Co-branding describes the strategic link between two operating brands that believe a synergy develops from a collaboration.

But it is now extended to sunglasses. For instance. and if these values and aspirations are embodied in the brand. . If the customers of the new business have values and aspirations synchronizing/matching those of the core business. This new category to which the brand is extended can be related or unrelated to the existing product categories. A renowned/successful brand helps an organization to launch products in new categories more easily. and golf equipments. An existing brand that gives rise to a brand extension is referred to as parent brand. basketballs.Brand Extensions Brand Extension is the use of an established brand name in new product categories. soccer balls. Boundaries exist in consumers’ minds about the credibility of a brand selling particular products. it is likely to be accepted by customers in the new business. Nike’s brand core product is shoes.

chocolate drink and a slab of chocolate. cosmetics and beauty products . and soap. Mars is no longer a famous bar only.Instances where brand extension has been a success areWipro which was originally into computers has extended into shampoo. but an ice-cream. Haute Couture designers into perfume. powder.

What makes up a brand?? .

Brand models and theory .

Brand models and theory .

One – word brand equity Successful brands have relied on simple. clear cut proposition that summarizes a brand concept as concisely as possible. a brand will more easily take root in the consumer’s mind. Brand values normally refers to those values and philosophies held by a brand which are used to differentiate that brand from its competitors. Advocates believe that by effectively taking ownership of a word. Brand Image & Values Brand image refers to a particular mental picture and set of feelings that consumers have about a brand. .

g. New York etc may be falsely associated with the fashion status of the city. affording them a perceived quality and design status. Found at value end of the market. e.Bogus Brands These are imitation brands that use names which reference particular national stereotypes. a name that includes London. .

image and emotional benefits With increased competition. its become difficult for consumers to differentiate Growth of Experiential Retailing .Why bother Branding?? Brand conscious society. Desire products with meaning.

consumers buy regularly and there is potential for repeat purchasing. . the benefits sought from the products that an individual buys tend to relate to how that individual will be seen by others. Fashion is highly disposable and has limited life span.Benefits of Branding In fashion.

Benefits of Branding: to a business .

Benefits of Branding: to customers of branding .

How to Brands work? Interbrand has identified “five portals to a consumer’s mind” .

and •Subsequent risk to customers of brand switching . The key reason why companies brand themselves.Brands Loyalty It refers to the deliberate and sustained customer preference for one brand’s products over other brand’s products. Brand Loyalty depends on: •Type of market •Intangible benefits •Competition.

How do you measure Brands Loyalty? .

and A continuous dialogue with customers over their needs and wants .Relationship Marketing It is a strategic approach used by a company to retain customers through the delivery of real value and quality products and services that are differentiated from competitors. Achieved through: High commitment to meeting customer’s expectations Service provisions.

Categories of Fashion Brands .

Own Labels ---Own Brands Branding strategy is to create desire in customers so that retailers stock the product Manufacturers Retailers Sell the products made by manufacturers and invest in stores P A S T Retailers Own labels Own Brands Improved quality competing with Manufacturer’s brand P R E S E N T .

using image communication.Luxury Brands Until 1990s the luxury industry was niche. directly opened stores and runway shows. Focused on very wealthy and sophisticated consumers. Many began as leather goods business. LVMH etc Late 1990s . Gucci. Dynasty and heritage . DNA. they became formulaic. E. Strong fashion identity.g.


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