BRANDS & BRAND MANAGEMENT

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Luxury Car Mercedes Benz
◦ Jaguar
◦ Aston Martin
Smart Car/ Sustainable
Tesla
◦ Mercedes SMART in China

Reliable Car Toyota

Sports Car Porsche

Power & Luxury BMW

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 Category first- Brand Next

Establishing Category Membership

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Southern New Hemisphere
University
President- LeBlanc

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The ‘Volvo’ Story
Safety
To

Luxury
To

Sports

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 The concept of Categories
NOT Brands
By: Al Reis
For every category there is a ladder in the mind

The ‘NAME’ is the hook that hangs the ‘BRAND’ on the

ladder

Find an open hole or category in the mind

Touch base with what already in the mind

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You can’t move a brand in the mind
◦ Blackberry, Kodak

Initials don’t exists in mind

◦ IBM, HP, GE

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 What is a brand?
(AMA), a brand is a “name, term, sign, symbol, or design, or a
combination of them, intended to identify the goods and
services of one seller or group of sellers and to differentiate
them from those of competition.”

These different components of a brand that identify and

differentiate it are brand elements.

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 Brands vs. Products

Product- anything we can offer to a market for attention, acquisition, use, or

consumption that might satisfy a need or want.

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Five Levels of Meaning for a
Product
 The core benefit level is the fundamental need or want that
consumers satisfy by consuming the product or service.
 The generic product level is a basic version of the product containing
only those attributes or characteristics absolutely necessary for its
functioning but with no distinguishing features.
 The expected product level is a set of attributes or characteristics that
buyers normally expect and agree to when they purchase a product.
 The augmented product level includes additional product attributes,
benefits, or related services that distinguish the product from
competitors.
 The potential product level includes all the augmentations and
transformations that a product might ultimately undergo in the
future.

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Meta

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A brand is therefore more than a product, as it can have dimensions
that differentiate it in some way from other products designed to
satisfy the same need.

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Some brands create competitive advantages with product performance;
other brands create competitive advantages through non-product-
related means.
Engine oil
Intel
Cadbury Celebration
“A diamond is forever”
“Make your two months salary last forever”

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 Why do brands matter?

What functions do brands perform that make them so valuable to

marketers?

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 Importance of Brands to Consumers

Identification of the source of the product

Assignment of responsibility to product maker
Risk reducer
Search cost reducer
Promise, bond, or pact with product maker
Symbolic device
Signal of quality

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 Reducing the Risks in Product
Decisions
 Functional risk—The product does not perform up to
expectations.
 Physical risk—The product poses a threat to the physical
well-being or health of the user or others.
 Financial risk—The product is not worth the price paid.
 Social risk—The product results in embarrassment from
others.
 Psychological risk—The product affects the mental well-
being of the user.
 Time risk—The failure of the product results in an
opportunity cost of finding another satisfactory product.

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 Importance of Brands to Firms
Identification to simplify handling or tracing
Legally protecting unique features
Signal of quality level
Source of competitive advantage
Source of financial returns

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Can everything be branded?
Flour--------------------------------Aashirbad by ITC

Coffee-------------------------------Starbucks

Water---------------------------------Bisleri

Place-------------------------------------Kerala

Beer--------------------------------------Budweiser

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What is branded?

Physical goods
Services
Retailers and distributors
Platforms
People and organizations
Sports, arts, and entertainment
Geographic locations
Ideas and causes

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Importance of Brand Management

The bottom line is that any brand—no matter how strong at one point
in time—is vulnerable, and susceptible to poor brand management.

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 Branding Challenges and Opportunities

Savvy customers
Brand proliferation
Media fragmentation-----------------------------------Real challenge to engage,
Continuous partial attention, i-Brain, by: Gary Small
Increased competition---------------------------------Hyper-competition by Richard D
Aveni, making Porter’s 6 forces model irrelevant
Increased costs------------------------------------------ SEO, Social Media, Ad, machine
learning, Greater challenge for Indian companies in the west, Nirmalya Kumar’s
Diaspora strategy
Greater accountability-------------------------------- MNCs gifting Obesity to
developing nations, Polycystic Ovary Syndrome & Hypertension. Coca cola India MoU
with Govt. of India, Grove to Glass, Fruit Circular Economy.

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 The Brand Equity Concept

No common viewpoint on how it should be conceptualized and measured

It stresses the importance of brand role in marketing strategies.
Brand equity is defined in terms of the marketing effects uniquely attributable
to the brand.
◦ Brand equity relates to the fact that different outcomes result in the marketing of a
product or service because of its brand name, as compared to if the same product
or service did not have that name.

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David Aaker’s Brand Equity

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Brand Awareness to Purpose
Brand
Disney
Discovery Health
Airbnb
Uber
Mayo Clinic
All of these are Purpose Brands
Synonym with what they are solving

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GE and Jack Welch

“The man who broke capitalism”

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Brand Loyalty to Brand Tribalism
◦ Social and cultural similarity or homophilic, beyond brand ownership
◦ Social media has intensified Tribalism

Brand Awareness to Brand Advocacy

Perceived quality leads to Classical Conditioning/ Operant conditioning
effect
Brand Association to High Recall
Other proprietary assets (IPR, Trade Associations) leads to Perceived Brand
Superiority (Nirmalya Kumar’s Invisible innovation in captive MNCs in India)

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Loyalty to Tribalism

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Perceived Quality Impact
Sony Nintendo
Last 10 years sales Last 10 years sales
$696.3 Billion $75.3 Billion
Net Profit Net Profit
$8 Billion $11.5 Billion
Margin Margin
1.1% 15.3%

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 Brand Association
Primary and Secondary association

A trivial mistake has potential to damage the brand significantly

Tim Cook’s strategy to ship second hand iPhones to India in 2015

After Impact
Electrolux’s zero down payment washing machine in Sweden and Social
identity

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 Strategic Brand Management

 It involves the design and implementation of marketing programs and activities

to build, measure, and manage brand equity.
 The Strategic Brand Management Process is defined as involving four main
steps:
1. Identifying and establishing brand positioning and values
2. Planning and implementing brand marketing programs
3. Measuring and interpreting brand performance
4. Growing and sustaining brand equity

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