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What is a brand?

What is a brand? A brand is a name, term, sign, symbol, design or a combination

A brand is a name, term, sign, symbol, design or a combination

of the above to identify the

goods or service of a seller and

differentiate it from the rest of the

competitors

A brand comprises of
A brand comprises of
  • Tangible attributes

  • Intangible attributes

Tangibles
Tangibles

Eg.

  • Product

  • Packaging

  • Functional benefits

Intangibles
Intangibles

Eg.

  • Quality

  • Emotional benefits

  • Values

  • Culture

  • Image

branded the destination with a

brand name, logo, and the

tagline “God’s Own Country”
tagline “God’s Own Country”
branded the destination with a brand name, logo, and the tagline “God’s Own Country” Copyright ©

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Brand Identity

Brand Identity It is the marketer’s promise to give a set of features, benefits and services

It is the marketer’s promise to

give a set of features, benefits

and services consistently

Advantages of Branding
Advantages of Branding
  • Easy for sellers to track down problems and process

orders

  • Provide legal protection of unique product features

  • Gives an opportunity to attract a set of loyal and profitable customers

  • Helps to give a product at different segments having separate bundle of benefits

  • Helps build corporate image

  • Minimises damage to company if brand fails

Brand Building

Brand Building Involves all the activities that are necessary to nurture a brand into a healthy

Involves all the activities that are

necessary to nurture a brand into a healthy cash flow stream after launch

What kind of activities?
What kind of activities?

Eg.

  • Product development

  • Packaging

  • Advertising

  • Promotion

  • Sales and distribution

What is brand equity?
What is brand equity?
  • The premium it can command in the market

  • Difference between the perceived value

and the intrinsic value

What happens when brands

have high equity?
have high equity?
  • The company can have more leverage with the trade

  • The company can charge a premium on their product

  • The company can have more brand extensions

  • The company can have some defense against price competition

Advantages of Strong Brands
Advantages of Strong Brands
  • Improved perceptions of product performance

  • Greater loyalty

  • Larger margins

  • More inelastic consumer response

  • Greater trade cooperation

  • Less vulnerability to

competitive marketing actions

  • Increased marketing communications effectiveness

  • Less vulnerability to crises

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Dorling Kindersley

(India) Pvt. Ltd.

  • Possible licensing opportunities

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Brand Loyalty Pyramid Committed buyer it a friend incur costs to switch Satisfied buyer/no reason to
Brand Loyalty Pyramid
Committed buyer
it a friend
incur costs to switch
Satisfied buyer/no
reason to change

Likes the brand. Considers

Satisfied buyer. Would

Switchers/Price

sensitive

Brand Parity

Brand Parity Consumers buy from a set of acceptable preferred brands

Consumers buy from a set of acceptable preferred brands

Umbrella Branding
Umbrella Branding
  • Products from different categories under one brand

  • Dangerous to the brand if the principal brand fails

  • Sometimes the company name is prefixed to the brand. In such cases the company name gives it legitimacy and the product name individualizes it.

How are brand names

chosen?
chosen?
  • What does the brand name mean?

  • What associations / performance / expectations does it evoke ?

  • What degree of preference does it create?

A brand name should indicate
A brand name should indicate
  • Product benefits

  • Product quality

  • Names easy to remember, recognise, pronounce

  • Product category

  • Distinctiveness

  • Should not indicate poor meanings in other markets or languages

Brand Strategy

Brand Strategy  Line extension – existing brand extended to new offerings in the same product
  • Line extension existing brand extended to new offerings in the same product category

  • Brand extension existing brand name extended to new product categories

  • Multi brands Different brands in the same product category

  • New brand

Brand Repositioning

Brand Repositioning This may be required after afew years to face new competition and changing customer

This may be required after afew

years to face new competition and changing customer preferences

Figure 10.3 Brand Dynamics Pyramid Strong Relationship
Figure 10.3 Brand Dynamics Pyramid
Strong Relationship

Bonding

Advantage

Performance

Relevance

   

Presence

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Kindersley

(India) Pvt. Ltd.

 

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Figure 10.3 Brand Dynamics Pyramid Strong Relationship Bonding Advantage Performance Relevance Presence Copyright © 2009 Dorling

Weak Relationship

Figure 10.3 Brand Resonance Pyramid

Figure 10.3 Brand Resonance Pyramid Copyright © 2009 Dorling Kindersley (India) Pvt. Ltd. 10-21

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Internal Branding
Internal Branding
  • Choose the right moment

  • Link internal and external marketing

  • Bring the brand alive for employees

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Devising a Branding Strategy

Develop new brand
Develop new brand
elements Apply existing brand elements Use a combination of old and new Copyright © 2009 Dorling
elements
Apply existing brand
elements
Use a combination of
old and new
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Dorling Kindersley
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Reasons for Brand Portfolios
Reasons for Brand Portfolios
  • Increasing shelf presence and retailer dependence in the store

  • Attracting consumers seeking variety

  • Increasing internal competition within

the firm

  • Yielding economies of scale in

advertising, sales, merchandising, and

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distribution

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Brand Roles in a Brand

Portfolio
Portfolio

Flankers

Low-end

Entry-level

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Cash Cows

High-end

Prestige

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