Noida Institute of Engineering and Technology, Greater Noida

PRODUCT AND BRAND MANAGEMENT

AMBA MK0312

Unit: 3

Product and Brand Mgmt

Ms.Priyanka Malhotra
Asst Prof.
MBA 2nd Year (3RD Sem) Dept of MBA

Faculty Name : Ms.Priyanka Malhotra 1

04/06/2024 Unit Number-3
 Definition of a Brand

A brand is a name, term, design, symbol or any other feature that identifies
one seller's good or service as distinct from those of other sellers. Brands are
used in business, marketing, and advertising for recognition and, importantly,
to create and store value as brand equity for the object identified, to the
benefit of the brand's customers, its owners and shareholders.
It 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.

04/06/2024
Faculty Name : Ms.Priyanka Malhotra 2
Unit Number-3
 Features of a Good Brand Name

A good brand name should have following characteristics:

1. It should be unique / distinctive (for instance- Kodak, Mustang)

2. It should be extendable.
3. It should be easy to pronounce, identified and memorized. (For instance-Tide)
4. It should give an idea about product’s qualities and benefits (For instance- Swift, Quickfix, Lipguard).
5. It should be easily convertible into foreign languages.
6. It should be capable of legal protection and registration.
7. It should suggest product/service category (For instance Newsweek).
8. It should indicate concrete qualities (For instance Firebird).
9. It should not portray bad/wrong meanings in other categories. (For instance NOVA is a poor name for a
car to be sold in Spanish country, because in Spanish it means “doesn’t go”).

04/06/2024 Faculty Name : Ms.Priyanka Malhotra 3

Unit Number-3
 Branding

Branding is the process of giving a meaning to specific organization,

company, products or services by creating and shaping a brand in
consumers’ minds. It is a strategy designed by organizations to help
people to quickly identify and experience their brand, and give them a
reason to choose their products over the competition’s, by clarifying
what this particular brand is and is not.

04/06/2024
Faculty Name : Ms.Priyanka Malhotra 4
Unit Number-3
 Significance of Branding

04/06/2024
Faculty Name : Ms.Priyanka Malhotra 5
Unit Number-3
 Branding Challenges and Opportunities

04/06/2024
Faculty Name : Ms.Priyanka Malhotra 6
Unit Number-3
 Strategic Brand Management
Strategic brand management is the process of building, measuring, and managing brand
equity, brand recognition, and presence to boost revenue and accomplish long-term business
objectives. Strategic Brand Management Process:

04/06/2024
Faculty Name : Ms.Priyanka Malhotra 7
Unit Number-3
 Strategic Brand Management Process

Eg.: Tesla
In the initial years of Tesla, it fails to meet its production target and fails to grab the attention of the
consumers. It was criticized for its electric vehicle. But with the efforts of the founder of Tesla, it
started performing well in the market.
The brand strategy of Tesla heavily relied upon providing the best customer experience. This brand
focuses on its brand reputation, and even its founder was responding to the tweets of the
consumers. This is how it made a good brand reputation and manages the brand strategically.

04/06/2024 Faculty Name : Ms.Priyanka Malhotra 8

Unit Number-3
 Daily Quiz

• A _______ is a name, term, design, symbol or any other feature that identifies
one seller's good or service as distinct from those of other sellers.
• _________ is the process of giving a meaning to specific organization, company,
products or services by creating and shaping a brand in consumers’ minds.
• Brands are considered as symbols of ______and social significance give ______
satisfaction to the consumers.
• Give two challenges faced in branding products.
• _________is the process of building, measuring, and managing brand
equity, brand recognition, and presence to boost revenue and accomplish long-
term business objectives.

04/06/2024 Faculty Name : Ms.Priyanka Malhotra 9

Unit Number-3
 Importance of Strategic Brand Management

1.Improvement in customer retention and establishing customer loyalty

2.Better engagement of employees in achieving the company’s objective
3.Employees feel more close to the company
4.Brand perception gets improved, and selling power strengthens up
5.Allows the company to have an impactful marketing communication.
6.A company gets less vulnerable to the drastic changes in the industry market
7.Increase customer responses and trade cooperation
8.It promotes licensing opportunities.

04/06/2024 Faculty Name : Ms.Priyanka Malhotra 10

Unit Number-3
 Identifying & establishing Strategic Brand Management

1) Identify the current standing of the brand (if existing product)

2) Identify the direct competition
3) Understand the standing of the competitor brands
4) Identify the uniqueness of the company
5) Develop the unique selling propositions
6) Formulate the messaging statements

04/06/2024 Faculty Name : Ms.Priyanka Malhotra 11

Unit Number-3
 Planning and implementing brand marketing programs

Once the positioning strategy is set, the next step involves the brand manager to actually
plan and implement strategies to position the brand as planned. It further involves three
steps –
• Choosing the brand elements brand name, logo, symbols, characters, packing,
and tagline. These are usually the first things customers will come across before actually
trying the product.
• Choosing the marketing activities and supporting marketing programs and the way the
brand is integrated into them
• Leveraging secondary associations like the country of origin, the channel of distribution,
etc. These are usually other entities that have their own associations. They result in
lending their own associations to add to the planned positioning.

04/06/2024
Faculty Name : Ms.Priyanka Malhotra 12
Unit Number-3
 Measuring and interpreting brand performance

The next step involves designing and implementing a brand equity measurement
system which helps the brand managers measure and manage brand profitability. A
brand equity measurement system is a set of research procedure designed to provide
timely, accurate and actionable information about the concerned brand to the brand
managers so they can make best possible tactical and strategical decisions to benefit
the brand in the short as well as the long run.
•Conducting Brand Audits: A brand audit is a comprehensive examination of the
brand’s current position in the market with respect to its competitors. It involves
assessing the strengths and weaknesses of the brands and providing suggestions on
how to strengthen it.
•Designing Brand Tracking: Brand tracking involves the collection of brand-related
information directly from the consumers on a routine basis over time, to measure the
present health of a brand, both in terms of consumers’ usage of it and what they think
about it.
04/06/2024
Faculty Name : Ms.Priyanka Malhotra 13
Unit Number-3
 Measuring and interpreting brand performance

•Establishing A Brand Equity Management System: It is a set of organizational

processes designed to improve how the brand equity concept is understood within
the company. This framework identifies sources and outcomes of brand equity and
permits tactical guidelines as to how to build, measure, and manage brand equity.

04/06/2024
Faculty Name : Ms.Priyanka Malhotra 14
Unit Number-3
 Daily Quiz

• Strategic Brand Management helps in _________& __________.

• Highlight the steps in Identifying & establishing Strategic Brand
Management.
• ___________ & ___________ are secondary associations which if
leveraged can help in implementing brand marketing programs.
• A __________is a comprehensive examination of the brand’s current
position in the market with respect to its competitors.
• ____________is a set of organizational processes designed to
improve how the brand equity concept is understood within the
company.

04/06/2024 Faculty Name : Ms.Priyanka Malhotra 15

Unit Number-3
 Brand equity

Brand equity refers to a value premium that a company generates from a product with a recognizable
name when compared to a generic equivalent. When a company has positive brand equity, customers
willingly pay a high price for its products, even though they could get the same thing from a competitor
for less.
The brand equity can be determined by measuring:
 The price premium that the brand charges over unbranded products
 The additional volume of sales generated by the brand as compared to other brands in the same
category and/or segment.
 Returns to shareholders
 The image of the brand on various parameters that are deemed important
 The future earnings potential of the brand.
 Or a combination of the above methods.

04/06/2024
Faculty Name : Ms.Priyanka Malhotra 16
Unit Number-3
 Brand equity

Brand awareness: Awareness essentially means that customers know about the
existence of the brand and can also recall what category the brand is in.
Brand associations: Anything that is connected to the customer’s memory about
the brand is an association like quality perceptions, their interactions with
employees and the organization, advertisements of the brand, price points at
which the brand is sold, product categories that the brand is in, product displays in
retail stores, publicity in various media, offerings of competitors, celebrity
associations etc.
Perceived quality: It is the perception of the customer about the overall quality of
a brand.
Brand loyalty: A customer is brand loyal when he purchases one brand from
among a set of alternatives consistently over a period of time.
Preference – When the consumer has a good experience with the brand, it
becomes the preferred choice.
Experience– Now that they recognize the brand and know what it is or stands for,
they try it.
Other proprietary brand assets: Proprietary assets include patents, trademarks
and channel relationships.

04/06/2024
Faculty Name : Ms.Priyanka Malhotra 17
Unit Number-3
 Importance of Brand Equity
Increases Market Share: Good brand equity results in loyal customers who prefer
one brand over the other and increases its market share.
Price Premium: Positive brand equity can charge more for its product than the
actual market price.
Asset: Brand equity is an intangible asset of an organization and like any other
asset; this too can be licensed, leased or sold to others.
Extension of Product Line: Positive brand equity makes it easier to introduce
new product lines. For example, Apple started with Mac operating systems and
easily converted its equity with iPhones.
Information processing: It helps customers in interpreting, processing, and
storing information about products and brands. It simplifies this process.
Customer confidence: A brand’s assets enhance customer confidence in the
purchase decision.
Customer satisfaction: The final value to the customer comes in the form of
usage satisfaction.
Marketing programmes: The effectiveness and efficiency of marketing
programmes are increased by brand equity assets.
Customer Loyalty: Brand equity dimensions allow a firm to have greater
customer loyalty. The customers can exhibit preference and commitment to a
brand only.
04/06/2024
Faculty Name : Ms.Priyanka Malhotra 18
Unit Number-3
 Daily Quiz

• _________ refers to a value premium that a company generates from

a product with a recognizable name when compared to a generic
equivalent.
• A clear ________when reinforced over a period of time in the
customer’s mind leads to creation of brand equity.
• Anything that is connected to the customer’s memory about the
brand is an association like quality perceptions is called ___________.
• A customer is ________when he purchases one brand from among a
set of alternatives consistently over a period of time.

04/06/2024 Faculty Name : Ms.Priyanka Malhotra 19

Unit Number-3
 Growing and sustaining brand equity
Once the brand equity is built, the next step involves maintaining and expanding it to make
sure that the brand continues to grow. This involves –
Defining brand architecture: It includes defining general guidelines about the branding
strategy and answers the what, why, where, who, and how about the brand structure and
brand elements.

Brand portfolio – listing all the brands a company has to offer, and a brand hierarchy –
listing the number and nature of common and distinctive brand elements across the
company’s products.

Brand reinforcement and revitalisation: It is all about making tactical decisions which make
sure that the customers have the desired knowledge structures so that the brands continue
having its necessary sources of brand equity.

04/06/2024
Faculty Name : Ms.Priyanka Malhotra 20
Unit Number-3
 Growing and sustaining brand equity

Brand sustainability is about perpetuating long-term differentiation and strong brand

recognition. This can be achieved through sustainable competitive advantage, which means
having unique abilities, attributes and company assets that are difficult to be reproduced or
exceeded by another company.

Through building and strengthening your brand and the business, you are protecting and
sustaining your brand equity. This can be done through :

Quality Credibility
Internal Marketing Positioning
Long-term Perspective Well-blended communications
Brand Building Repositioning

04/06/2024
Faculty Name : Ms.Priyanka Malhotra 21
Unit Number-3
 Brand Equity Models

THE 3 BRAND EQUITY MODELS ARE :

1. AAKER Model
2. Brand Asset Valuation
3. Keller’s Brand Equity or Brand resonance Model

04/06/2024
Faculty Name : Ms.Priyanka Malhotra 22
Unit Number-3
 Aaker Model

David Aaker has defined brand equity in his Aaker Model. He defines brand equity as a group of assets and
liabilities that can be directly associated with the brand and that which adds value to the product. For
Aaker, brand management starts with developing a brand identity, which is a unique set of brand associations
representing what the brand stands for and offers to customers an aspiring brand image.
Aaker model consists of 5 components:
Brand Loyalty
This explains the level of loyalty that a customer shows towards a brand
Brand Awareness
This is the extent to which the brand is popular in the market
Perceived Quality
The image of a product and its quality in the eyes of the customers
Brand Associations
The level of recognition that a brand has in its product category
Proprietary Assets
The number of patents, intellectual property rights, trademarks, etc. that a brand owns.
These components of the Aaker model help to influence the customer’s choice. A customer will be willing to
associate with a brand that offers higher quality and satisfaction.
04/06/2024
Faculty Name : Ms.Priyanka Malhotra 23
Unit Number-3
 Brand Equity Models

04/06/2024
Faculty Name : Ms.Priyanka Malhotra 24
Unit Number-3
 Daily Quiz

• ____________ includes defining general guidelines about the branding

strategy and answers the what, why, where, who, and how about the
brand structure and brand elements.
• Brand reinforcement and revitalisation help in _________ the brand equity.
• ___________ is about perpetuating long-term differentiation and strong
brand recognition.
• _________defines brand equity as a group of assets and liabilities that can
be directly associated with the brand and that which adds value to the
product.
• The level of recognition that a brand has in its product category is called
________.
04/06/2024 Faculty Name : Ms.Priyanka Malhotra 25
Unit Number-3
 Brand Equity Models

2. KELLER'S BRAND EQUITY MODEL

04/06/2024
Faculty Name : Ms.Priyanka Malhotra 26
Unit Number-3
 Keller’s Brand Equity Models

Keller’s Brand equity model is also known as the CBBE model which stands for Customer based brand equity. The CBBE
model or the Brand equity pyramid is actually a pyramid which tells us how to build brand equity by understanding your
customers and implementing strategies accordingly. If there is a connection between the brand and the consumer, it
results in positive brand equity & has a better chance of acquiring and sustaining customers, thereby giving a huge
advantage to the companies and products which are considered as “brands”.
By using the Brand equity pyramid or the CBBE model, brands know which strategies to implement and how to give the
right experiences to their audience so that they create the WOW factor.
THE KELLER MODEL HAS 4 LEVELS :
1. SALIENCE
This level of the pyramid deals with establishing the identity of the brand. Keller suggests a single building block for this
phase and terms it brand salience. To attain this level Keller suggests brand awareness , knowing the customers-their
needs , wants, segmentation , USP of the brand.
2. PERFORMANCE AND IMAGERY
The second layer of the pyramid deals with giving meaning to the brand and here Keller presents two building
blocks: brand performance and brand imagery.
Brand performance is the way the product or service attempts to meet the consumer’s functional needs. Brand
performance also has a major influence on how consumers experience a brand as well as what the brand owner and
others say about the brand.

04/06/2024
Faculty Name : Ms.Priyanka Malhotra 27
Unit Number-3
 Keller’s Brand Equity Models
3. JUDGEMENT AND FEELING
Judgments about a brand emerge from a consumer pulling together different performance and imagery associations. These
judgments combine into a consumer’s opinion of a brand and whilst there are multiple judgments that an individual can
make.
Judgments can be made about :

1.Quality : Actual and perceived ,

2.Creditability : The extent to which the brand is perceived as having expertise, being trustworthy and likable .
3.Consideration :Brand must be unique, relevant to the consumer so that they are likely to purchase or use it.
4.Superiority : Specialisation in brand.
Brand must have positive feelings : Warmth , Excitement , Security , Social approval and self respect.

4. RESONANCE
•Resonance is characterized by the intensity of the psychological bond that customers have with the brand and their level of
engagement with the brand.
•The challenge for the brand manager and strategist is to develop the bond and increase the number of interactions (repeat
purchases of a product or service) through the development of marketing programmes that fully satisfy all the customers’
needs, provides them with a sense of community built around the brand and even empowers them to act as brand
champions.
•To attain this final level a brand needs :behavioural loyalty, attitudinal attachment , sense of community, active
engagement.
04/06/2024 Faculty Name : Ms.Priyanka Malhotra 28
Unit Number-3
 BRAND ASSET VALUATOR EQUITY MODEL OR BAV MODEL

3. BRAND ASSET VALUATOR EQUITY MODEL OR BAV MODEL

DIFFERENTIATION ESTEEM
+ +
RELEVANCE KNOWLEDGE
= =
BRAND STRENGTH ------------ BRAND STATURE

04/06/2024
Faculty Name : Ms.Priyanka Malhotra 29
Unit Number-3
 BRAND ASSET VALUATOR EQUITY MODEL OR BAV MODEL

Brand Asset Valuator has 4 pillars

1. Differentiation
BAV’s Differentiation Pillar examines a brand’s unique meaning, dynamism and energy—what it is
that enables it to stand out and capture the attention of consumers. This pillar most relates to brand
pricing power, loyalty and cultural currency.
2. Relevance
BAV’s Relevance Pillar measures the connection brands have to people - how meaningful and
relevant they are in the lives of consumers. It is cost-of-entry to brand consideration and market
penetration.
3. Esteem
BAV’s Esteem Pillar captures how a brand lives up to its promise—how highly consumers respect
and regard it. Brands held in high esteem are more likely to see repeat usage from consumers.
4. Knowledge
BAV’s Knowledge Pillar measures the depth of understanding consumers have for a brand and is the
culmination of the brand-building process.

04/06/2024
Faculty Name : Ms.Priyanka Malhotra 30
Unit Number-3
 BRAND ASSET VALUATOR EQUITY MODEL OR BAV MODEL

THE POWER GRID : BAV MODEL

04/06/2024
Faculty Name : Ms.Priyanka Malhotra 31
Unit Number-3
 BRAND ASSET VALUATOR EQUITY MODEL OR BAV MODEL

1)Quadrant 1, brand is in the quadrant as a new brand and has newly entered the market or is an old stagnant
brand with no clear focus. Brand in the quadrant 1 has brand stature and brand strength which get lower. The
quadrant is divided into 2 parts a) brand which is not focused tends to be stagnant b) new brand which is better to
be marked by the less differentiation, relevance, esteem and knowledge. That can improved to move brand into 2nd
quadrant
2) Quadrant 2, here the company hasn’t yet to be able to realize the maximum potential from the company brand
or the brand plays in market niche. In the quadrant is marked with the brand strength in the form of differentiation
and some brand attribute which is relevant with the consumer needs but the lower brand stature is low, however,
the brand revenue into this quadrant is although low but having the potential to develop in the next.
3) Quadrant 3, here brand has the high income and also has the potential of high growth in the future. However, in
the quadrant 3 is divided into 2 diagonally parts, those are the leader and there is decreasing brand leader. The
decreasing leader in this brand results in the high sale marked by the high esteem and knowledge as the result of
building the past successful brand but currently is in a position of low differentiation and relevance which has the
meaning that the company need to do some research-based innovation to stay relevant.
4) Quadrant 4, The last quadrant spells “Danger” for the brand, an indicator of eroding potential. These brands in
this quadrant have failed to maintain their Relevance. If unattended, their Stature will also begin to fall. Unless steps
are taken to stimulate the differentiation and relevance, these brands will lose Esteem and could ultimately fade
from consumers’ consciousness
04/06/2024 Faculty Name : Ms.Priyanka Malhotra 32
Unit Number-3