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Prof. Sachin Deshmukh
Branding is major component of product strategy What the brand signifies to the customers is an essential part of brand management. The values inherited by the brand merge with the company¶s values. The firm must regularly assess the nature of its brand image.
Prof. Sachin Deshmukh
What is a brand?
It defines a brand name, symbol, word, sign, design or combination that differentiates one or more offering of a seller or group of sellers from the competition. The brand helps the buyers in the following ways ± 1. Product identification which reduces the search costs 2. Signal particular quality level which reduces perceived costs. 3. Provide social status which reduces social and psychological risks.
6. 4. which aids in the introduction of the new product offerings 3. which allows for the identification of appropriate target segments and tailored communication and promotional campigns. The distinctiveness of product offering. which enables premium pricing.Prof. Sachin Deshmukh Branding The benefits delivered by a brand to the selling company are 1. Differentiation of company¶s offerings from those of competitors. Ability to identify specific product offerings clearly which aids promotional efforts. 5. The breeding of customer familiarity. The facilitation of customer identification & purchase which improves financial performance 2. Enhancement of brand loyalty which promotes repeat purchases .
Sachin Deshmukh Brand Identity Brand has a core identity which is its essence and which remain constant Brand has an extended identity which focuses on a series of psychological & physical aspects that gives nuance & texture. Brand identity is comprised of 12 dimensions grouped under 4 distinct brand perspectives. .Prof.
Sachin Deshmukh Brand Identity Extended core Brand as a product 1. Uses 5.Prof. Local vs global Brand as a person 9. Users 6.Brand customer relationship Brand as symbol 11. Organization attributes 9. Brand heritage . Personality 10. Product Scope 2. Product attribute 3. Country of origin Brand as a Organization 7. Visual & imagery metaphors 12. Quality/value 4.
Sachin Deshmukh Brand Equity Brand equity focuses on the measurement of brand value. .Prof. Brand assets are compared to brand liabilities and maintain a strong viable brand equity valuation. Brand value is a set of assets connected to a name & symbols of the brand that adds to the value of the product.
Prof. Sachin Deshmukh Brand Equity Brand equity is made of 5 categories of assets Brand awareness Brand loyalty Perceived quality Brand association Other brand proprietary assets .
. Sachin Deshmukh Brand Architecture A complex structure of brands in a brand portfolio with a variety of different types of brand roles and relationships.Prof. A house of brands is a company that manages a disparate group of brands that stand on their own. Aaker and Joachimsthaler created the brand relationship spectrum to help brand architecture analysis They show a different branding relationships that extend from the house of brands at one extreme to the branded house at the other. Proctor & Gamble and Colgate Palmolive represent the house of brands.
Prof. Sachin Deshmukh House of brands Not connected Shadow endorser Token endorser Endorsed brands Brand relationship spectrum Subbrands Linked name Strong endorser Co -drivers Master brand as a driver Different identity Branded house Same identity .
Prof. Sachin Deshmukh Creation of house of brands Allows the company to Avoid brand associations that would be perceived as incompatible Signal breakthrough advantages of new offerings Own a new product class association by using a powerful name that reflects a key benefit Avoid or minimize channel conflict .
Here the link is not actively identified.Prof. Shadow endorsement. Sachin Deshmukh House of brands There are two possible options for the make up of the House of Brands 1. but many customers understand the connection ± Tide (P & G) Lexus (Toyota) . No connection being made across the brands ± General Electric. General Motors 2.
Sachin Deshmukh Endorsed brands These brands are independent but they are endorsed by another brand.Prof. Three types are identified Token endorsement ± where the endorser brand is the main focus Linked name ± where a name with common components create an entire family of brands Strong endorsement ± where the endorser brand is not necessarily the main focus. .
Sachin Deshmukh Subbrands These brands are strongly connected to the parent brand and build additional association in to the combined offering. There are two options for the subbrands 1.Prof. Parent brand as a driver . Parent and subbrand as co-drivers with neither dominating 2.
Brand offerings with different identity . The strategic options are 1. Brand offerings with the same identity 2. Sachin Deshmukh Branded house Corporate brand has the dominating driving position for a variety of product offerings.Prof.
Consumer perceptions of brand and the potential for sustainable competitive advantage. Industry cost structure.Prof. . Sachin Deshmukh Strategic Brand Management Strategic brand management requires understanding of two important issues 1. brand efficiency & brand profitability 2.
Sachin Deshmukh Industry cost structure.Prof. brand efficiency & brand profitability Strategic brand decisions can have impact on financial performance of the company Brand managers con improve brand performance from cost & profitability perspective. Operational efficiencies can be achieved from Brand leveraging Brand consolidation Premium branding Co ± branding Use of non traditional communication/promotional channels Use of new brand valuation mechanism .
opening up new market opportunities 3. Leveraging causes spreading out of the support cost associated with brand management 2.Prof. Sachin Deshmukh Brand leveraging The company uses the name recognition that accompanies a strong brand to increase potential sales and profits by attaching the name to other company offerings. Convergence is causing the merging of many separate industries. The following factors drive brand leveraging 1. Relationship building appears to mean more to the customers than functional benefits .
Prof. If a company decides to consolidate the brands then three choices can be made 1. To phase out the brand 2. Sachin Deshmukh Brand consolidation There are many mergers and acquisitions taking place that present challenges to the brand managers. To combine brands using co ±branding or putting brands under a single umbrella brand. To quickly change to a single brand name 3. .
Creation of synergistic mixture which results in greater sales than the individual brands produced by themselves before consolidation due to reduction in cost of goods sold. . Sachin Deshmukh Can brand consolidation be successful? Correctly pursued brand consolidation can lead to 1.Prof. A µmakeover¶ for the previously stodgy brands that are now being fused together. 2.
Is the category µpremium¶ or value? 2. Brand managers must try to find answers to two questions while planning brand strategy. Is the brand¶s relative market share high or low? . 1. Greater profitability can be achieved if the market is dominated by a series of premium brands.Prof. Sachin Deshmukh Premium branding & relative market share Brand profitability is driven both by market share and by nature of market in which the brand competes. Studies reveal that brands with high market shares achieve approximately 10% on return on sales while those with low market share achieve less than 5%.
Prof. Sachin Deshmukh A four cell matrix for analysis Market share High High ± road brand Low ±road brand Low Hitchhiker brand Dead ± end brand Premium Value .
Prof. Kellogg¶s cereals with Walt Disney Dunkin¶ doughnuts with Baskin Robbins . Sachin Deshmukh Co ±branding Co ± branding refers to bringing together of two separate company brands to be marketed together to create a joint offering with additional value to the customer.
Sachin Deshmukh Non traditional communication channels Publicity Event sponsorship Theme park development ± Cadbury¶s in UK Membership club development Nestle¶ .Prof.
Prof. Brand ROI ± which is a ratio described as below Brand ROI = Brand sales brand value net income brand sales . Advertising turnover ratio which examines the relationship between advertising expenditure and brand value. Sachin Deshmukh New brand valuation mechanism Two ratios are used for brand assets evaluation 1. 2.
Sachin Deshmukh Consumer perception of brand and competitive advantage Brand management has image & personality component which must be carefully assessed and tracked over time .Prof.
Sachin Deshmukh Customer familiarity & brand regard Consumer¶s familiarity with the brand as well as consumer¶s regard for the brand must be carefully examined .Prof.
Brand usage . The ease with which it is brought to mind 3. Sachin Deshmukh Consumer¶s familiarity results from 1. Brand awareness 2.Prof.
Prof. User satisfaction 3. Sachin Deshmukh Brand regard results from 1. prestige . Product quality perceptions 2.
Lamborghini . Tarnished treasures ± with low consumer regard relative to familiarity. extension has a high potential. where price competition has hampered high regard & the risk of cannibalization is high.Prof. Coveted icons ± with high consumer appeal relative to familiarity. Sachin Deshmukh Categories of brands There are five major categories of brands in terms of familiarity & appeal 1. ± Bose. geared towards a broader market and good for extension that fit with brand image and quality perceptions ± Tropicana 3. Marlboro cigarettes 5. reflective of a prestige image. with a little problem of cannibalization and where extensions can build awareness ± Whirlpool refrigerators 4. Developers ± which are low in familiarity and appeal. Diamonds ± are high very on familiarity & appeal have exceptional brand equity & serve as a powerful bases for brand extension . Troopers ± which are high in familiarity and appeal.Coke 2.
Prof. Sachin Deshmukh Brand personality It is the embodiment of the personality traits of the consumer in the brand itself Example ± Victoria¶s secrets .
Prof. Sachin Deshmukh Customer brand involvement & perceptual connections The key to brand success is to build strong relationships with customers by enhancing customer experiences with the brand. its personality. & its heritage .
IKEA Singapore Airlines . Sachin Deshmukh Brand perceptual reinforcement & revitalization Keller ± Brand management must always take a long term perspective with respect to brand equity and valuation.Prof. Any strategic decision made in the short term can affect the future potential of the band. Brand audit ± A comprehensive examination of the various sources of brand equity from the perspective of the company as well as the consumer. Lovemark ± A move beyond branding to where the name becomes a symbol of love to the consumer. The key is that the name triggers an emotional attachment that transcends reasons Examples of lovemarks ± BBC.
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