Brand Concepts &

Strategy
 Structure
• What is a Brand?…. Product vs Brand
• Brand Identity … Developing a Brand
Framework
• Brand Strategies … Extension &
Revitalization
What is a Brand?
 Essence of a Brand : Aaker
• “A company’s brand is the primary
source of its competitive advantage and
a valuable strategic asset.”
• “The challenge for all brands is that
they have distinct clear image that
matters to customers and truly
differentiates from the rest.”
• The key step is to create a broad band
vision or identity that recognizes a
brand as something greater than a set
of attributes that can be imitated or
surpassed.
 Product vs Brand
• A product is made in a factory… A
Brand is bought by the customer.

• A Product can be copied… A brand is

unique

• A Product is quickly outdated…A

Brand is Timeless
 Product vs Brand
Brands differentiate Products
• Fairness Creams: Fair & Lovely vs Ponds
Dream Fairness
• Coconut Hair Oil: Parachute vs Dabur
Vatika
• Cola: Coca Cola vs Pepsi

Products largely undifferentiated: Product

choice function of Convenience / Availability
/ Price.
• Petrol : BPCL vs IBP vs ….
• ATM : HDFC vs HSBC vs ….
 Product Levels : Kotler
• Core Product: Core Benefit or service

• Tangible Product: Brand Name,

Packaging, Features, Quality, Styling

• Augmented Product: After sale

service, Installation, Delivery & credit,
Warranty

Eg: Consumer Goods … Products

extending Services … Asian Paints:
Painting Homes; Surf: Laundry
Brand Identity
 Brand Image vs Brand
Associations vs Brand
Brand Association

Personality Based on:

• Expression of self or User Imagery
Eg: Nike – Achivement Performance
• User/Customer – Brand Relationship Eg: McDonalds-
Fun Family
• Functional Benefit – Association Based Eg: Gujarat
Ambuja- Strong Man
 Identity vs Image
Consum Corpor
er Consumer Research ate
Brand Noise Brand
Image Identity
• Brand Communication
Market,
Competition, •Activities
Strategic
Media Vision,
Business

Image:
• Consumer Perception: What is vs What can be
• Awed by Competition : Problem of Imitating
• Desire to Impress: Lacks genuineness
• Caught in the Refection: Unable to see True self
 What is Brand Identity?
• Simply put: What does a Brand stand for?
• Heart and Soul of the Brand: Brand Constitution,
Brand Framework
• Provides Strategic Vision – Direction, meaning,
purpose to the brand
• Combination of Brand Vision, Purpose, Values &
Associations
• “… is a set of brand associations that the brand
strategist aspires to create or maintain. These
associations represent what the Brand stands for
and imply a promise to customers from the
organization members” - Aaker
 What is not Brand Identity :
Traps
• Brand Image Trap: Eg: Denim: Macho
– Based on consumer perception. Tactical, Reactive
– Lacks Strategic Future Perspective
• Brand Position Trap: Eg: Elle 18 : Teenagers
– Based on Competitive Advantage. Relates to
current market scenario, consumer needs.
Communication captures only a particular aspect of
the Brand
– Limited Scope. May not be applicable in the Future
• External Perspective Trap: Eg: Tata: Trusted
Quality
– Customer centric, lacks employee buy-in
• Product –Attribute Fixation Trap: Eg: Britannia
Biscuits
– Based on Product Attributes, Product Benefits
 Brand Concepts
SENDER
BRAND
Brand
Framework

Product
Framework

How it does?

PRODUC
T/S
What it does?
RECEIVE Associations
R Brand Image , Personalities,
 How? – Strategic Brand
Analysis
Processes: Semiotics- Image Study: Factor Analysis-
Attribute Rating, Perceptual Map, Cluster
Analysis- Profiling
Consume
r
Image
Needs
Trends
Performan
ce
Image Image
Heritage Positioning
SWOT Communicati
Company Relationshi on Competit
ps SWOT or
 Brand Identity Systems:
Aaker
Brand as an ORGANISATION

Extended Identity
Brand as Brand as
Core
PRODUCT Identity PERSON
(Peripheral Support Values)

Brand as Symbol

VALUE PROPOSITION
Functional + Emotional + Self
Expressive Benefits
SUPPPO
RT
 McDonald’s Brand Identity
System
Efficient Service, Hygienic, Clean , Smart

VFM, Tasty, Service

VFM, Fun, Happy,
Quality, Burgers
Hygiene, Friendly,
& Fries, American Ronald
Happy Family, Warm,
Happy Meal Fun Family Outgoing
Promos

Ronald, Happy Meals, Parties

Tasty, VFM Burgers, Fries & Drinks

Create environment to provide fun &
entertainment For family and kids

Ronald, Happy Meals.

Clean Environment, Efficient Srvice
 Why ? – Leveraging Brand
Identity
• Guides Brand Strategy
• Strengthens Brand Memorability,
Communication, Associations
• Provides Brand Extension possibilities
• Assists Portfolio Reorganization
• Improves Competitive Advantage
• Adds Value to organization – Market Value
• Gives a sense of direction to employee
 When? – Change vs
Consistency
• Need to change Identity Position
Communication:
– Poorly Conceived Mismatch: Digen Verma
– Obsolete: Philips… Innovation
– Shrinking Audience: Ponds … Oil Control
– Not Contemporary: Lakme…Fashion
– Fatigue: Britannia… Health & Nutrition…
Intelligence
 Need For Consistency
• Brand Building takes time:
– Amul girl & Utterly Butterly Delicious Amul
– Marlbro Rough Cowboy
• Results in Cost Efficiencies
Organizational Pressures to change:
– “Change” a solution to all problems
– “Facelift” to fight Boredom
– “Self-Promotion”
 BRAND-WAGON

BRAND
ENGINE
Marketing
Busines Segmentati Mix
s Brand on Product/Pkg Mktg Sales
Potenti Value Target Price Plan Plan
al Positioning Place
Promotion

BUSINESS STRATEGY MARKETING STRATEGY

SALES STRATEGY
 Brand Strategies
To Fuel the Brand Engine
• Strategy 1:- Extension- Giving birth to
new product brands
• Strategy 2 :- Revitalization- Injecting life
to the existing brand
Revitalization:- Injecting life to
same brand, energizing a mature brand

Need to inject life into the Mature Brand

“Facelift” … Recharging the Brand
Batteries
 Brand Decisions: Leveraging
Brand Identity

• Brand Extension Strategy

• Brand Revitalization / “Restage”
 Simply Put…
• Brand Identity: What does a Brand
mean / stand for
• Brand Extension: What would you like
(enjoy, love, admire) the brand to do for
you.
• Brand Revitalization: How would you
like to see the Brand tomorrow (Future
Expectations).
• Brand System / Architecture: What
are the important Relations that the
Brand has
Brand Extension Strategy
 Need for Brand Extension
• Brand Growth
– Mature brand : provide fillip to
stagnating sales
– Threat of new entrants: Protect Market
Share
– Strengthen franchise
• Enhance Brand Image
– Strengthen Brand Identity
– Revive core values
– Reposition core values
 Ways in which a Brand can be
Extended
1. Line Extension
2. Brand Extension
3. Multiple Brands
4. New Brands
 Line Extension Strategy
• Extend existing brand name to existing
product category: Identify & occupy
different segments of the market –
“market fragmentation”

– Pack variants: shampoos: sachets to economy

packs… tubes to jars, bottles to cans :
differentiate uses
– Price variants: Rin Shakti to Rin Supreme. Taj
Luxury to Taj Executive: differentiate user
groups… Parachute Uttam (differentiate
markets)
 Line Extension Strategy
• Flavours / Variants: Diet Coke,
Sunsilk Black, Parachute Lite…. Hair
type, skin type, user groups:
Differentiate user needs
… Colgate Gel, MaggiChinese
Noodles
• Ingredient Lead: Lux Sunscreen,
Pond’s Talc with SAM : upgrade user
needs
 Brand Extension Strategy
• Extend the brand name to a new Product
Category: Brand fit in a new business
area
– Supplementary Categories: BPL TV to
Washing machines, Maggi soups & sauces,
Lakme lipsticks to perfumes
– Complementary Categories: Colgate
toothbrush & toothpaste
– Image Accessories: Bennetton T-shirts to
sun-glasses, Nike sports shoes to T-shirts
– Diverse Categories: Similar core values:
Britannia biscuits to dairy products. Dabur
Chavanprash to Vatika
Multiple Extension Strategy
• New Brand names in the same product
category “market saturation”
• Expensive strategy: Leading
corporates… often through
acquisitions… economies of scale
– HLL soaps- Lux, Breeze, Kai, Hamam,
Lifebuoy, Dove, Pears
– P&G Detergents: Ariel, Tide
– Coca Cola: Coca Cola, Thums Up…
– Lakme: Elle 18, Orchids
– Nescafe, Sunrise
 New Brand Strategy
• New Brand Name for a product
category: poor brand fit but
business potential
– Kotex to Kleenex
– Huggies to Depend
– Thums Up to Gold Spot, Pepsi to Mirinda
– Lakme to Elle 18
 Stretching the Brand
Vertically
Understanding the terms:

• Vertical stretch: Technically a Line extension since it is

the introduction of Price Variants of an existing Brand
in the existing Product Class

• Stretching Up: Extending the Brand to a Higher Priced

Segment
Eg: From Surf detergent 500g at Rs 43 to Surf Excel
detergent 500g at Rs 60

• Stretching Down: Extending the brand to a Lower

Priced Segment
Eg: From Ariel Washing Powder to Ariel Gain Washing
Powder
 Brand Stretch & Market
Segments
STRETCH
UP
Image

Potential
Brand

Market
EXISTING
BRAND

STRETCH
DOWN
Brand Extension Horizons
Brand Extension
Horizon 2

Brand Extension
Horizon 1

Line Extension
Horizon 1
 Effect of Brand Extensions
• More Good: Extension enhances
Brand name.
• Good: Extension aids Brand Name
• Bad: Extension fails to help Brand
Name
• Ugly: Extension Damages Brand
Name
• More Ugly: Brand Name is Forgone
 Post Mortem
• Colgate Gel: More Good
• Rexona Does: More Good
• Close Up Whitening: Good or Bad ?
(credibility?)
• Amul Pizza : Good or Bad (price?)
• Britannia Cheese, Ghee… More Good
• Sunsilk Hairoil : Bad (Identity or product?)
• Diet Coke: Bad… Good?? (Identity… Market
evolution)
• Frooti Apple Drink: Ugly (Identity?)
 Note…

Good understanding of the Brand

Identity… may or may not lead to the
Success of the Brand Extension.

But a poor understanding of Brand

Identity will definitely lead to the
failure of the Brand Extension… &
may also damage the existing Brand.
Brand Revitalization
 Brand Revitalization
• Inject life into a Mature Brand = Facelift
• Enhance Brand equity: improved
recognition, enhanced perceived value,
changed associations, an expanded
consumer base & or increased loyalty
• Movement from milking Cash Cows to
Brand Restage (External Stars), ina
competitive context
• Recognition of the Power of Old Brands
vs the Expense & Risk of Creating New
 Brand Revitalization/
Rejuvenation Efforts to extend
SALES

Prevent
further
Decline,
retain
sales
growth

TIME
 Today’s need:
Continuous Process of

Revitalization:
Starts at an
Sale

early stage
before a brand
s

shows a decline

Time
 Ways to Revitalize

Increased Repositioni
Usage ng

New Augmenting
Users Product

Obsolescing
New Product
Markets

Extensio
ns
 Increased Usage
• Increased Salience: Dettol
• Increased Frequency/Regular Use:
Shampoos : Head & Shoulders,
economy pack, travel pack
• Incentives/Promotions: Filmfare,
Frequent Flier Programs
 New Uses
• New Gifting Solutions: Tiffany’s &
Cadbury’s
• Festive Occasions: Asian Paints
• Multiple Functional Uses: Milkmaid
recipes
• Behavioral shifts: Moov – Sprains to
Back Aches
 New Markets
• Redefine Target Segment: Cadbury’s
Dairymilk Chocolates for Adults
• Growth in new segments: Personal
Computers
 Repositioning the Brand
• Image Upgrade: Philips “Lets make
things Better”
• Revive Image: Lakme, Dettol
• Change Association: Britannia
from biscuits to healthy food
 Augmenting the Product
• Packaging Upgrade: Crocin,
Shampoo, fliptops
• Product Upgrade: New improved
Lux
• Increased Customer
Involvement: Wills & Cricket,
Sunsilk & Parlours, Surf & Laundry
Service
 Obsolescing the Product
• Fashion Products: Colour cosmetic
range, Revlon, Designer Watches-
Titan
• Technology Products: Sony
Music… mobiles… Windows
• Dying Categories: Pond’s vanishing
cream – Oil Balanced Formula
 Restage Vs Re-engineer
• Restage: Maintain the Star Status of a
product through constant innovation &
activity to CONTINUOUSLY enhance
the brand equity salience over a period
of time

• Re-engineer: To reinstate the Star

Status of a Cash Cow / Dog product….
inputs risk…. multiple changes to be
orchestrated in conjunction …..
 Remember… If you don’t,
someone
What Iodex did not do, Moov did.
What HMT did not do, Titan did.
What Indian Airlines did not do, Jet
Airways did.
 Brand Exercise
• Develop a Benefit Ladder for the product
Category based on Consumer needs /
Motivation
• Create a perceptual map for the leading 3-4
brands in the Category
• Outline the Brand Image (from consumer
research & Brand Values assuming the role
of the Company)
• Give 3 possibilities of Brand extension, Line
extension and Brand Revitalization
• Develop a brand Positioning Statement
• Identify a consumer insight which you can
 Motivation Perception Image
Insight…. Question Bank
1. How would you describe Hit as a person vs
Raid vs Baygon?
2. Imagine 10 years from now, where would you
see these people… (individually)
3. Can you describe their family members
4. Which animal would you associate with the
following brands?
5. Which Car would you associate with eash of
the above brands?
6. Which celebrity / sport person would you
associate with each of the above brands?
7. Which kind of person do you think will use the
above brands?