Professional Documents
Culture Documents
BY
P.S.VENKATESWARAN
UNIT – I INTRODUCTION
• Basics Understanding of Brands
• Definitions
• Branding Concepts
• Functions of Brand
• Significance of Brands
• Different Types of Brands
• Co branding
• Store brands.
BRAND…….
• A brand can take many forms, including a
name, sign, symbol, color combination or
slogan.
• A legally protected brand name is called a
trademark.
• The word brand has continued to evolve to
include identity - it affects the personality of a
product, company or service.
It is possible to brand everything……
• A physical good (Nestle soup, Pantene shampoo or
Maruti Swift
• A service (Kingfisher Airlines, TATA AIG medical
insurance),
• A store (Big Bazaar, BATA stores),
• A place (The state of Tamilnadu),
• An event (Chittirai festival)
• A person (Shahrukh Khan, Sachin Tendulkar,
Kalam, Tiger Woods, Roger Federer)
• An organization (PSNACET, UNICEF or BCCI)
• Godrej acquired Hit and Goodnight brands of
mosquito repellents for a consideration of
Rs.131 crores.
• Marico acquired Saffola and Parachute
brands for an estimated of Rs.30 crores from
Bombay Oil Industries.
• Philip Morris bought Kraft brand for $12.9
billion.
• Brands are new avatars for fighting
competition and achieving superiority.
BRANDING CONCEPTS…..
A) BRAND
The AMA defines it as:
• "A brand is a name, term, sign, symbol, or design, or a
combination of them, intended to identify the goods or
services of one seller or group of sellers and to
differentiate them from those of competitors."
There are three aspects of this definition.
• Firstly, it focuses on 'What' of the brand.
• Secondly, it emphasizes on what the brand 'does'.
• Brand is the personality that identifies a product, service
or company (name, term, sign, symbol, or design, or
combination of them) and how it relates to key
constituencies: customers, staff, partners, investors etc.
b) BRANDS AND PRODUCTS
• A brand name is used by the marketers because of the roles it can
perform. It identifies the product or service. This helps consumers to
specify, reject or recommend brands. This is how string brands
become part and parcel of a consumer's life.
• Secondly, brands help in communication. Brands communicate either
openly or subconsciously.
• For instance, the brand 'Fair and Lovely' Communicates what the
product does. Similarly, a brand like Johnson and Johnson is a
symbol of expression of a mother's love.
• Finally, a brand becomes an asset or property which only the owner
has the right to use. The brand property is legally protected. All the
registered names are the valuable assets of the owners.
• Coca-Cola brand name is perhaps the most valued asset of Coca-
Cola Corporation.
• Brands were seen to perform identification and
differentiation functions. But mere identification may not
be a sufficient condition for survival in competitive
marketplace.
• For instance, the brand Premier identified the
automobiles with the Premier Automobiles Limited very
well.
• At the same time the 'Premier' brand distinguished
these cars from rest of the competitors Iike Hindustan
Motor's Ambassador, Maruti, and others.
BRAND PERSPECTIVES……
The customers' choice behavior is influenced by five types
of values which they tend to satisfy:
• First, the functional value: It is the physical or functional
performance of the product or service.
• Second, social values: It means the satisfaction that the
consumer seeks by association with certain social groups
of the society.
• Third, emotional value: It means the ability of the product
or service to satisfy the customer by creating feelings like
joy, love, and respect ete.
• Fourth epistemic value: It means the need to know or learn
something new'
• Finally, situational value: It refers to the ability of the
product to satisfy' situational needs.
• There are six perspectives on brand
1. Visual/Verbal Perspective
The visual and verbal aspects of brand serve important
functions of identification and differentiation.
Symbols enhance brand recognition and brand recall, visual
images leave imprints in the visual memory of the prospects,
even at the pre-processing level.
For instance, the strong connection between colour and
brands helps prospects retrieve or recall brand name upon
seeing the colours.
– Red connects with Colgate and Coke,
– Blue is tied to Pepsi,
– Yellow reminds one of Kodak.
2. Positioning Perspective
• The brand must hold a position in the consumer’s mind
that sets it apart from the host of the players in the
category. The route to achieving a unique position is to
get into concept of Brand the prospect's mind first.
• For instance IBM owns 'computers',
• Kodak owns photography' and Xerox owns
'photocopying' in the prospect's mind.
• The brand is nothing more than a position occupied in
the perceptual space of the consumer.
3. Value Perspective
• A brand starts with a product and name. The product is
extended by adding values around it. There are three
tiers of values that a brand offers:
• Functional, expressive and central values.
• The functional values refer to performance aspects of
the brand. That is what it does at the functional level.
• For example,
• Watch keeps time. Bottle of water reduces thirst.
• So these may by the functional sides of a brand like
• Titan and Bisleri.
• The expressive values reflect the customer side of brand.
• They state more about the customer and less about the
product.
• Customers buy brands for their ability to express values.
• For instance, Mercedes, Rolex, Asmi brands offer status
values to customers.
• Central values, at their purest, are alive in religious,
national or political persuasion.
• For instance, in today's world of suspicion, the respect
associated with brands like Nike or Pepsi makes them very
powerful in the same way as the Michael Jackson also
carries a value which is central to today's younger
generation.
4. Brand Image Perspective:
• Brand image building is "The effort to differentiate the
brand psychologically rather than physically.“
• Pepsi is choice of the new generation because it is
essence of what youthfulness is all about.
• The brand image building must begin with thorough
understanding of consumers' psychological self - the
thoughts and feelings.
• The brand must project what target consumers are and
what they want to be in a social setting. This approach
must be taken with caution.
• Symbolism alone may not be sufficient to attract and keep
the customer. The brand must also be satisfying
functionally.
5.Added Value Perspective
• This perspective's thrust is on the value added by the
brand in making the product more satisfying. "The
difference between a brand and a commodity can be
summed up in the phrase 'added values'.
• A brand is more than the sum of its component parts.
• The cement supplied as a generic product to a contractor
is not the same as it comes in bags named 'Raymonds'.
• The brand name adds value to the generic product,
making it more desirable for the buyer.
• The brand in this case brings a host of assurances in the
form of reliability, consistent quality, confidence and
support.
6. Perceptual Appeal Perspective
acceptability of a brand.
• The brand name is quite often used interchangeably with "brand", although it
products or services.
"Registered Trademarks".
• There are three main types of brand name:
(1) Family brand names:
• A family brand name is used for all products. By building customer trust and
loyalty to the family brand name, all products that use the brand can benefit.
• Good examples include brands in the food industry, including Kellogg’s,
Heinz and Del Monte.
(2) Individual brand names:
• An individual brand name does not identify a brand with a particular
company.
• For example, take the case of Heinz. Heinz is a leading global food
manufacturer with a very strong family brand. However, it also operates
many well-known individual brand names.
• Examples include Farleys (baby food), Linda McCartney Foods (vegetarian
meals) and Weight Watcher’s Foods (diet/slimming meals and
supplements).
(3) Combination brand names:
• The idea here is to provide some association for the product with a strong
Office in personal computing software and Heinz Tomato Ketchup and Heinz
Pet Foods.
BRAND FUNCTIONS
• Brands make the choice of the product easier for the buyers.