Core &

augmented
benefits
 Product Levels
Core Benefit
(Rest and sleep)

Basic Product
(Bed, bathroom, towels)

Expected Product Customer-value

(Clean bed, fresh towels)
Hierarchy

Augmented Product
(Free Internet; free breakfast)

Potential Product
(Future augmentations)
…….a
…….ashort-hand
short-handthat
thatcommunicates
communicatespowerfully
powerfully&&reduces
reducesuncertainty
uncertainty
 The Brand

“The sum of all characteristics, tangible and

intangible, that make the offer unique.”

Brand Name Coca-Cola

Brand Logo Bottle Design and Red Cap
Trademark ™ Legally Protected Marks

Brands and organizations spend considerable sums

telling customers what they stand for.
 Views on Brands

“A name, logo, or symbol that

evokes in customers a perception of
added value for which they will pay
a premium price.”
John Torella, J.C. Winters Group, Toronto

“A product with a personality.”

Chris Staples, Rethink, Vancouver

Marketing communications in any form has an impact

on customers’ perceptions.
 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
Coke the brand
 Benefits of Branding
For customers a brand offers:

1. A desired level of quality.

Consistently
2. Psychological rewards from
ownership
3. A means of distinguishing one brand
from another

The brand image helps create loyalty.

 Benefits of Branding

For the company branding offers:

1. A means of communicating features and

benefits
2. An opportunity to create and sustain an
image
3. Customer satisfaction and repeat purchase
opportunity
 Brand Loyalty
“The degree of consumer attachment
to a brand.”

Recognition Awareness of name,

Recognition
benefit and package

Preference Is useful, consumer will

Preference
buy if available…evoked
set
Insistence
Insistence Will search for; must have
The 22 Immutable
laws of Branding

12
 1. The law of Expansion
• The power of a brand is inversely
proportional to its scope
• Marketers constantly run branding
programs in conflict with people’s
perception of their brands. Customers
want brands that are narrow in scope and
are distinguishable by a single word, the
shorter the better."
13
• Chevrolet used to be the largest selling brand
in the US with 1,718,839 cars sold in 1986. But
trying to be all things to everyone undermined
the brand and today Chevy sells less than a
million cars and is no longer the market leader.
14
 2. The law of Contraction
• A brand becomes stronger when you
narrow its focus

15
• In a few short years Starbucks has become one
of US’s best known and most popular brands.
Narrowing one’s focus is not same as carrying a
limited line. Starbucks offers thirty different
types of coffees.
16
 3. The law of Publicity
• The birth of a brand is achieved with publicity,
not advertising
• Advertising is best used to maintain a brand, but
it is very difficult and expensive to launch a new
brand through advertising alone
• The best way is to be first in a new product or
service category, and reap the attendant
publicity
17
• Anita Roddick created the concept of
Body Shop in 1976 around the concept
of natural cosmetics made of pure
ingredients, no animal testing and kind
to environment and indigenous people.
With no advertising but massive
amounts of publicity, it is today a
powerful global brand.
18
 4. The law of Advertising

• Once born, a brand needs advertising to

stay healthy

19
• A consistent theme of Goodyear
advertising over the years has been #1 in
tires. So who makes the best tires? It
must be Goodyear thinks the customer.
It’s the leader.

20
 5. The law of the Word
• A brand should strive to own a word in the
mind of the consumer
• If you want to build a brand, you must focus
your branding efforts on owning a word in the
prospect's mind. A word that nobody else owns.

• Examples: Mercedes = prestige; Volvo =

safety; Kleenex = tissue; Xerox = copier; .
21
Immutable
ImmutableLaw
Lawof
ofName
Name

In the long run the brand is nothing more than a name

• Federal Express became successful by
becoming the first air cargo carrier to
narrow its focus on overnight delivery
thereby owning the word overnight in
customers minds. FedEx has become
synonymous with overnight delivery.
23
 6. The law of Credentials
• The crucial ingredient in the success of any
brand is its claim to authenticity. The best
claim is being the leading product or service in
your category, because consumers assume
that if it is a leading seller, it must be good
• Never forget leadership. No matter how small
the market, don't get duped into simply selling
the benefits of the category
• There are also the long-term benefits of
leadership. Once you get on top, its hard to
lose your spot.
24
• In 1942, Coca Cola launched an Ad
Campaign “ The only things that tastes
like Coca Cola is Coca Cola Itself. It’s the
real thing.” It has used the real thing
slogan over the years to claim its
authenticity.
25
 7. The law of Quality
• Quality is important, but brands are not
built by quality alone
• In fact, most people have no idea as to
the "real" quality of a product or service.
• Is a Rolex really better at keeping time
than a Timex? How do you know?

26
• Rolex has become the world’s best known and
best selling brand of luxury watches. Does
quality have anything to do with its success?
Probably not. Does Rolex make high quality
watches? Probably. Does it matter? Probably
Not.
27
 8. The law of the Category

• A leading brand should promote the

product or service category, not the
brand.
• This may seen counter-intuitive, but the
best way for the brand leader to build
sales is to promote the category, not
their specific brand.
28
• Eatzi’s is the first brand in the new
category it calls the meal market. Jointly
owned by Brinker international and Phil
Romano, Eatzi’s focuses on restaurant
quality food primarily for take out
consumption.
29
 9. The law of the Name

• In the long run, a brand is nothing more

than a name

30
• One of the world’ most powerful brands, Xerox
demonstrates many of the important laws of
branding, including being the first in its category
with a short unique name , so much to become
generic for copying. How ever when it put its
name to computers the result was huge losses

31
 10. The law of Extensions

• The easiest way to destroy a brand is to

put its name on everything

32
• With a powerful marketing program,
Miller high Life was rapidly gaining on
market leader Budweiser. ( It got within
20% of King of Beers) Then it introduced
a bevy of line extensions and stopped
Miller High Life cold.
33
 11. The law of Fellowship

• In order to build the category, a brand

should welcome other brands

34
• One of the best locations for a number two
brand is across the street from the leader. The
best place for a Planet Hollywood is right
across the street from its biggest competitor,
Hard Rock Café. Both brands will benefit.

35
 12. The law of the Generic

• One of the fastest routes to failure is giving a

brand a generic name
• Generic names (i.e. names describing the
product or service category, such as "Wine
Coolerz"), do not strongly position the product
or service within the category, and are thus
liable to confuse potential customers.

36
• Blockbuster Video is a good brand name
for a video rental store while General
Video Rental is not. Brands should Avoid
generic names like the plague. Yet you
see a large number of such generic
names especially in the retail area.

37
 13. The law of the Company

• Brands are brands. Companies are companies.

There is a difference.

• Brand names should always take precedence

over company names. Consumers buy brands,
they don't buy companies. So when a company
name is used alone as a brand name like GE,
Xerox, Intel customers see these names as
brands.
38
• Does Tide need the corporate endorsement
of company name Procter & Gamble?
Probably Not. Will the endorsement hurt the
brand? Probably not. But Corporate
endorsements are for the trade , not for
customer’s enlightenment. 39
 14. The law of Sub brands

• What branding builds, sub branding (i.e.

brand extensions) can destroy.

40
• Holiday Inn has become a mega brand
with the launch of sub brands like
Holiday Inn Express, Holiday Inn Select,
Holiday Inn Garden Court etc. This sub
branding is eroding the power of core
brand.
41
 15. The law of Siblings
• There is a time and a place to launch a
second brand.
• The key to a family approach is to make
each sibling a unique individual brand
with its own identity.
• Resist the urge to give the brands a
family look or identity. You want to make
each brand a different and distinct as
possible.
42
• When Honda wanted to introduce an expensive
car, it didn’t call the brand Honda Plus or Honda
Ultra. It developed a new brand called Acura
which became a huge success. As a matter of
fact , it became the largest selling imported
luxury car in US.
43
 16. The law of Shape

• A brand's logotype should be designed to

fit both the eye.
• The ideal shape for a logotype or brand
symbol is two and a quarter units wide
and one unit high.
44
• A customer sees the world through 2
eyes peering out of his head like
looking out windshield of an
automobile. For Maximum Visual
Impact a logotype should be same
shape as a windshield. Avis is almost
perfect while Arby’s is too vertical.
45
Brand Logo
• Simple logo, designed to fit both eyes
• Mercedes three star- It symbolizes Daimler's pursuit of
transportation over Land, Sea and Air. Three mediums, three
points on the star.
• Logos with a horizontal bias
• Logo with a horizontal bias is esp. useful for retail brands
• Logo font has to be clear and legible
 17. The law of Color

• A brand should use a color that is the

opposite of its major competitor's.

47
 Attributes

The
TheCola
ColaWars:
Wars:Energy
EnergyVs.
Vs.Peace
Peace
• What color is a Tiffany’s box . It’s a
distinctive Robin’s egg blue. All tiffany
boxes are blue. If Tiffany had used a
variety of colors for its boxes ,it would
have lost a marvelous opportunity for
brand name reinforcement with a
distinctive color.
49
• Colours have long been a battleground in marketing.

For the first 100 years of modern branding, you could not trademark a colour. But all
that changed once and for all - thanks to insulation.

Owens-Corning began making Fiberglas insulation in 1938. When insulation is

manufactured, it is white. So after many years of all insulation looking alike,
• Owens-Corning made the decision to dye their product red in 1956.

But the red dye made the Fiberglas wool look pink.

• Source:usedvictoria.com

•
The pink insulation was shipped out, but the company wasn't happy with the colour.
So Owens-Corning abandoned pink and went back to the original colour. Then they
got the most unexpected response:
•
Installers began asking for the PINK insulation.So the company stuck with PINK. It
was a marketing master stroke. In 1987, Owens-Corning made legal history when it
became the first company to trademark a single colour. They had proved to the
courts that their insulation was clearly identified as pink, they had spent over $50
million dollars marketing it as such, and they had even licensed the Pink Panther as a
mascot.
Pink Panther
 18. The law of Borders

• There are no barriers to global branding. A

brand should know no borders.

52
• Heineken exports it beer to some 170
different countries. In most of these
countries, it is the largest selling high
priced beer. It locally brews its beer in 50
countries.
53
 19. The law of Consistency

• A brand is not built overnight. Success is

measured in decades, not years

54
• BMW has been ultimate driving machine for 25
years. What's more remarkable is the fact that it
retained its strategy even while changing 3
advertising agencies. Change of agencies usually
signals end of a brand’s consistency.

55
 20. The law of Change

• Brands can be changed, but only

infrequently and very carefully.

56
• Citibank changed from a corporate bank to a
consumer bank with plans of becoming the first
global consumer bank. It took a while but was
done. But a merger with Travelers Group
threatened the entire branding process.

57
 21. The law of Mortality

• No brand will live forever. Euthanasia is

often the best solution.

58
• Film Photography is slowly being replaced
by digital photography. But Kodak refuses
to face that reality. Instead it is trying to
save its brand by using Kodak name on its
Digital products.
59
 22. The law of Singularity

• The most important aspect of a brand is

its single-mindedness.

60
• Volvo has been selling safety for over 35 years.
In the process it has become the largest selling
European luxury car. In the past decade, it has
sold 849,348 cars in the US, outselling BMW
and Mercedes Benz.
61