Post on 25-Jun-2015
transcript
BRANDINBRANDINGG
The American Marketing Association The American Marketing Association defines Brand as: defines Brand as:
“ “ a name, term, sign, symbol or design or a a name, term, sign, symbol or design or a combination of them, intended to identify combination of them, intended to identify
the goods or services of one seller or group the goods or services of one seller or group of sellers and to differentiate them from of sellers and to differentiate them from
those of competitors”. those of competitors”.
ROLE ROLE OF OF
BRANDINGBRANDING
Brands: Identify the Source of maker allowing
customers and organisationto assign responsibilities
Evaluation of Identical products
Learn about Brands
Through pastexperience
Brands: Reduce decision making
&Reduce risk
-In firms they simplify product handling or tracing. -Help organise inventory and accounting records
-Legal protection of unique features.- IPR
Signals quality
Predictability andSecurity of demand
for firm.
Brand loyalty Customer
willingness& pay high price
Branding Secure competitive
advantage
Not all brands are successfulNot all brands are successful
Uninterrupted nurturing Good marketing programme
Established markets Product differentiation
Right distribution & sales support
Apt positioning
Meticulous planning & execution
TASKS IN TASKS IN BRAND BRAND
MANAGEMENTMANAGEMENT
- SELECTING BRAND NAME & LOGO SELECTING BRAND NAME & LOGO
identity and visual recognitionidentity and visual recognition- DIFFERENTIATION DIFFERENTIATION
Investing attributes & unique imageInvesting attributes & unique image- POSITIONINGPOSITIONING
value proposition & target right customersvalue proposition & target right customers- DISTRIBUTION & PROMOTION SUPPORTDISTRIBUTION & PROMOTION SUPPORT
BRAND rejuvenation, relaunches, extension, packaging.BRAND rejuvenation, relaunches, extension, packaging.- BRAND POLIFERATIONBRAND POLIFERATION
Adding more brands to a lineAdding more brands to a line- BRAND STRENGTHENINGBRAND STRENGTHENING
monitoring lifecycle, profitability, competitive positioning, monitoring lifecycle, profitability, competitive positioning, growthgrowth
- BRAND EQUITYBRAND EQUITY
SELECTING SELECTING BRAND NAME BRAND NAME
& & LOGOLOGO
DISTINCTIVE
EASY TO PRONOUNCE
RECOGNISE
NATURE & FUNCTION
REMEMBER
BRAND
SHOULD
DENOTE
THEM
DIFFERNENT DIFFERNENT APPROACHES APPROACHES
IN IN SELECTING SELECTING
BRAND NAMEBRAND NAME
SPECIALITY OF THE PRODUCT
FUNCTIONS & ATTRIBUTES
USE OF ACRONYMS
COMPANY NAME
Good Knight – mosquito repellantBoost – energy drink
Fair & Lovely - ?Walkman, Touchwood
AMUL – Anand Milk Union Ltd.,MRF – Madras Rubber Factory
Ford Ikon, Misubishi LancerHalo, Sunsilk
Taj Hotels
Bata, Cadbury, Samsung, Philips
SELECTING THE SELECTING THE LOGOLOGO
Visual identification Visual identification
communicate to customerscommunicate to customers
Symbol of identitySymbol of identity
Piece of creativityPiece of creativity
Increase memorability, recallIncrease memorability, recall
Words, alphabets, Words, alphabets,
pictures, graphicspictures, graphics
DO’S & DONT’S IN LOGO DO’S & DONT’S IN LOGO SELECTIONSELECTION
Fulfill requirements of Fulfill requirements of media suitabilitymedia suitability Should be reproduce on Should be reproduce on various mediavarious media like print, television like print, television
& other media vehicles& other media vehicles Attractive reproduction on Attractive reproduction on different surfacesdifferent surfaces like glass like glass Flexibility to Flexibility to accommodate accommodate national/global & business-national/global & business-
business marketing context.business marketing context. Memory valueMemory value of logo is vital. of logo is vital. UniqueUnique
CHANGING LOGOCHANGING LOGO
Brand Name, Logo & SloganBrand Name, Logo & Slogan
ONIDAONIDA The green eyed The green eyed devildevil
Neighbours envy Neighbours envy owners prideowners pride
MRF radialMRF radial The man with The man with steel musclessteel muscles
India’s answer India’s answer to world class to world class
carcar
AT&TAT&T The globeThe globe Connecting Connecting people, anytime, people, anytime,
anywhereanywhere
OPTIONS IN BRANDINGOPTIONS IN BRANDING
ADOPT INDIVIDUAL BRAND NAME FOR EACH PRODUCT
ADOPT A FAMILY BRAND/UMBRELLA BRAND NAME FOR ALL PRODUCTS
TO ADOPT THE COMPANY NAME AS BRAND NAME
OFFER ONE’S PRODUCTS FOR BRANDING BY MIDDLEMEN / DISTRIBUTION HOUSE
1. INDIVIDUAL BRAND NAME- Each product of the company is given an independent brand name.
- HLL –: Individual brands
Detergent: Surf, Rin, Wheel and Bathing soap: Dove, Lux, Pears, Liril.
Washing line: Sunlight and 501. Toothpaste: Close-up, Pepsodent.
Coconut oil: Nihar.
- HLL – Umbrella brands
HLL has both Individual brands and Umbrella brands
Brooke bond: Umbrella brand for Coffee and Tea
Kissan: Food line
Annapurna: Raw food items
Lakme : Beauty products
Reliance????
How about Nestle’?
NESTLE
NESCAFE MAGGI KITKAT
Also Milkmaid, Cerelac, Soups, Sauces, Ketchups, Jams
-Each brand gets promoted Separately and moves by itself.
-But the promotional costs may be high
- Associated benefits.
2. FAMILY / UMBRELLA BRAND2. FAMILY / UMBRELLA BRAND
Different products of the company are marketed under one brand Different products of the company are marketed under one brand name. name.
Family branding / umbrella branding does not mean that entire Family branding / umbrella branding does not mean that entire product mix of the company should go under a single brand name. product mix of the company should go under a single brand name.
Different branding approaches for different product lines.Different branding approaches for different product lines. Amul – umbrella brand for milk and milk products.Amul – umbrella brand for milk and milk products. Dhara – cooking oil line. Has 7 types of oils – mustard oil, groundnut Dhara – cooking oil line. Has 7 types of oils – mustard oil, groundnut
oil, sunflower oil etc..oil, sunflower oil etc..
BENEFITSBENEFITS
CONVENIENT TO ADOPT
PROMOTION – EASY & LESS EXPENSIVE
ASSURE STANDARD OF QUALITY
SAME CAMPAIGN CAN BE USED FOR
OTHER PRODUCTS
HIGH RECALL VALUE
NEW PRODUCT LAUNCH –
EASY & CHEAP
READY RECOGNITION &
MARKET SET UP
EASY TO PUSH NEW PRODUCTS
3. COMPANY NAME3. COMPANY NAME
BAJAJGODREJPHILIPS
CADBURY’SJOHNSON & JOHNSON
VIDEOCONBPL
SAMSUNG
COMPANY’S REPUTATION
GODREJ decided to change its name but later
retained it and changedthe style of logoDid not want
“IDENTITY LOSS”
BETTER IDENTITY
& IMAGE
MIDDLEMENS BRAND / STORE BRAND / MIDDLEMENS BRAND / STORE BRAND / PRIVATE LABELPRIVATE LABEL
- Some manufacture’s leave their products for branding by the Some manufacture’s leave their products for branding by the distributors / retail chains – MIDDLEMAN BRANDS OR distributors / retail chains – MIDDLEMAN BRANDS OR STORE BRANDS / PRIVATE LABELSSTORE BRANDS / PRIVATE LABELS
- Small manufacturers don’t have the resources to build own Small manufacturers don’t have the resources to build own brands for marketing and promotion. brands for marketing and promotion.
- Spencer’s Spencer’s Groceries, vegetables and fruits. Groceries, vegetables and fruits.- Shopper’s stop Shopper’s stop Clothes and accessories Clothes and accessories- Foodworld Foodworld Groceries, vegetables and fruits.Groceries, vegetables and fruits.
PROMOTE BRANDS EARN REWARDS
BRAND BRAND EXTENSIONEXTENSION
- Brand extension is an effective tool / weapon in brand Brand extension is an effective tool / weapon in brand management, and it basically means extending a brand name management, and it basically means extending a brand name to more products. to more products.
WHY OPT FOR BRAND EXTENSIONWHY OPT FOR BRAND EXTENSION
- Instant Instant brand recognitionbrand recognition- Saves costsSaves costs costs less that launching new brand costs less that launching new brand- Increases the Increases the strength / visibilitystrength / visibility of existing products of existing products- ““Superbrand”Superbrand” scope of profit & extended brand awareness scope of profit & extended brand awareness- If an existing brand name can be If an existing brand name can be extended across totally new extended across totally new
and unrelated productsand unrelated products its benefit is large its benefit is large
Extended to items in a related product lineMaggi Maggi Ketchup, Maggi Soup.
Related BRAND EXTENSION / CATEGORY EXTENSION
Extended to items in an unrelated product lineEnfield Motorcycles , Televisions, Gensets.
UNRELATED BRAND EXTENSION / OUTSIDE CATEGORY EXTENSION
Extend to other items in the same product lineLINE EXTENSION : Sunrise coffee Sunrise premium , Sunrise extra coffee
LINE LINE EXTENSIONEXTENSION
- Simplest form of brand extensionSimplest form of brand extension- Make additions in the line and cater to all usersMake additions in the line and cater to all users
““PRINCIPLE OF BENEFIT TRANSFER”PRINCIPLE OF BENEFIT TRANSFER”- Idea: Core strength of parent brand can be used for the Idea: Core strength of parent brand can be used for the
new item new item - New item will also give benefit to the parent brandNew item will also give benefit to the parent brand
Surf : HLL Surf Ultra, Surf ExcelMatic, International Surf Excel
Colgate: Dental Cream, Gel, Calciguard, Total, Sensitive, Herbal – INCREASED CORPORATE REVENUE & PROFIT
ADVANTAGES OF LINE EXTENSIONADVANTAGES OF LINE EXTENSION
Strengthens brand power & keeps brand alive, modern and contemporarySurf Ultra & Surf Excel
Reduces mounting costs on advertisements and promotions
Changing customer tastes can be accommodated But every change is notaccommodated
Few brands cannot stand independent they revert back to the parent brandNestle introduced Sunrise as an independent brand but later it reverted
as Nestle sunrise
Provides route for infusing new values continuously ; gaining new markets
EXTENDINGEXTENDING A A
BRAND NAME BRAND NAME TO TO
PRODUCT PRODUCT IN A IN A
RELATED LINERELATED LINE
DETTOL
-Antiseptic lotion
-Reckitt & Colman
-Wanted to expand into new antiseptic products
-Gain immediate identification
Dettol Soap – Antiseptic soapDettol Plaster – Antiseptic BandageDettol Handwash – Antiseptic wash
Line & Category extension PONDS
Ponds Dreamflower TalcPonds Dreamflower Talc Magic
Ponds Sandal TalcPonds Dreamflower Soap
Ponds Cold CreamPonds Face Wash
Ponds Age MiraclePonds Moisturizing Lotion
EXTENDINGEXTENDING A A
BRAND NAME BRAND NAME TO TO
PRODUCT PRODUCT IN AN IN AN
UNRELATED LINEUNRELATED LINE
Brand name is extended across completely new and Brand name is extended across completely new and unrelated products, falling under altogether new unrelated products, falling under altogether new product categoriesproduct categories
Maximum reward and risks.Maximum reward and risks. REWARD: Substantial savings in cost for REWARD: Substantial savings in cost for
developing new brandsdeveloping new brands RISK: Customer rejection RISK: Customer rejection
REQUIREMENTS REQUIREMENTS FOR SUCCESS FOR SUCCESS
OF OF BRAND EXTENSIONBRAND EXTENSION
In customer perception, there should be consistency between Parent brand and the extension
Ponds = mother products
Extension should be in the area of brand expertiseMaggi = culinary / food category
Benefit Transfer
BRAND BRAND REJUVENATIONREJUVENATION
Improves product attributes
Adds value to an Existing brand
Enhance overallappeal
Refocus attention of
customers
Reduce customerboredom
New, Special, Premium, Deluxe, Extra strong, Fresh, Super – Heard of them before?
new shapes, new pack size, new containers, new colours and flavors.
Objectives of brand rejuvenationObjectives of brand rejuvenation
Revival of A
brand
Breath life into a declining brand
Even healthy brands Can be rejuvenated
Reformulation duringcompetition
Brand gets life & becomes more focused
Steady success of brand
Cadburys, P&G, and Hindustan Lever. Cadburys, P&G, and Hindustan Lever.
HUL HUL continuous updation continuous updation
Surf, Close-up, Lux, Rexona.Surf, Close-up, Lux, Rexona.
Even 100 year old Lifebuoy got a facelift in Even 100 year old Lifebuoy got a facelift in
75 gm “rural pack” as ‘New’ Lifebuoy75 gm “rural pack” as ‘New’ Lifebuoy
Lifebuoy conducts 15 – 20 rejuvenation Lifebuoy conducts 15 – 20 rejuvenation programme every year.programme every year.
BRAND BRAND RELAUNCHRELAUNCH
Some brands fail to take offSome brands fail to take off Some brands decline after a spell of profitSome brands decline after a spell of profit After so much of marketing and spending After so much of marketing and spending
money, companies don’t want to give in.money, companies don’t want to give in.
TRIAL
IMPROVEMENTS & CHANGES
RELAUNCH WITH NEW CAMPAIGN
Wipro Santoor – Was a flop initially. But on relaunch it was Wipro Santoor – Was a flop initially. But on relaunch it was promoted as New Santoor - supported by new campaign. promoted as New Santoor - supported by new campaign. Premium category status.Premium category status.
Close-Up – Launched in 1970 as gel toothpaste. Relaunch in Close-Up – Launched in 1970 as gel toothpaste. Relaunch in 1989 in red and blue 1989 in red and blue extensive promotional activity. extensive promotional activity.
BRAND BRAND PROLIFERATIONPROLIFERATION
OPPOSITE OF BRAND EXTENSION
In brand extension, new items are added using an existing brand name &
Several products are added under the same brand name
In brand proliferation, more items can be bought in with new brand names. In other words the firm has several brands in the
same product / product category.
Unilever has more than 25 brands of ice creams &
P&G has dozens of detergents
SEVERAL INDEPENDENT BRANDS CROP UP
It helps expand the market as well as the company’s market share in the category
New brand also increases excitement for the
Sales people + pitfalls
Brand cannibalisation
Resources may be spent; but returns may
not be proportional
Brands which are positioned Strategically minimize
cannibalisation
Increases company’s clout at the retail level by
offering variety
BRAND DEVELOPMENT BRAND DEVELOPMENT
THROUGHTHROUGH
ACQUISITION / TAKEOVERACQUISITION / TAKEOVER
Long drawn-out, time consuming tasks
Companies in thick of competition & compulsion of growth = No time at their disposal
Take over, acquisition and buyout is the easy Way out
Heard of sellers of brands?
- Coca-Cola acquired Goldspot- Godrej acquired Good Knight
BRAND EQUITYBRAND EQUITY
- Is the added value endowed on products and services. Is the added value endowed on products and services. - It may be reflected in the way customers think, feel, act with It may be reflected in the way customers think, feel, act with
respect to the brand as well as prices, market share and respect to the brand as well as prices, market share and profitability the brand commands for the firm.profitability the brand commands for the firm.
““CUSTOMER BASED BRAND EQUITY”CUSTOMER BASED BRAND EQUITY”
- Differential effect that brand knowledge has on customer Differential effect that brand knowledge has on customer response to the marketing of the brand.response to the marketing of the brand.
- Positive customer-based brand equity:Positive customer-based brand equity: Customers reacting more favourably to the brand + when the brand is identified in clutter.
- Negative customer-based brand equity: Negative customer-based brand equity: Customers react less Customers react less favourably to the brand + brand not identified. favourably to the brand + brand not identified.
3 INGREDIENTS OF3 INGREDIENTS OFCUSTOMER BASED BRAND EQUITYCUSTOMER BASED BRAND EQUITY
1.1. Brand equity arises from differences in customer Brand equity arises from differences in customer response – response – Competition is probably based on priceCompetition is probably based on price
2.2. Brand knowledgeBrand knowledge – Thoughts, feelings, images, – Thoughts, feelings, images, experiences associated with the brand.experiences associated with the brand.
3.3. Differential response - by perception, preferences, Differential response - by perception, preferences, behaviour. behaviour. Stronger the brand greater the revenueStronger the brand greater the revenue
BENEFITS OF BRAND EQUITYBENEFITS OF BRAND EQUITY
1.1. Greater loyaltyGreater loyalty
2.2. Less vulnerable to competitionLess vulnerable to competition
3.3. Improved perceptionsImproved perceptions
4.4. Brand extension opportunitiesBrand extension opportunities
5.5. Licensing opportunitiesLicensing opportunities
6.6. Trade cooperation increasesTrade cooperation increases
7.7. Larger marginsLarger margins
8.8. Less vulnerable to marketing crisesLess vulnerable to marketing crises
MEASURING MEASURING BRAND EQUITYBRAND EQUITY
“The power of a brand to reside in the mind of a “The power of a brand to reside in the mind of a
customer and change his response to marketing”customer and change his response to marketing”
MEASURING BRAND EQUITYMEASURING BRAND EQUITY
DIRECT APPROACH:
Assesses the actual impact of Brand Knowledge on
customers responseto different aspects
of marketing
INDIRECT APPROACH:
Assesses potential sources of Brand equity
By identifying and tracking customer
Brand knowledge structures
SIMPLIER BRAND VALUE CHAIN
BRAND VALUE CHAIN
It is the outcome of the investment a firm makes in It is the outcome of the investment a firm makes in building a brand franchise. It is made up of: building a brand franchise. It is made up of:
- Usership of brandUsership of brand- Consumer loyaltyConsumer loyalty- Perceived qualityPerceived quality- Positive symbols & favorite associationsPositive symbols & favorite associations with brand with brand
MEASURING MEASURING BRAND EQUITYBRAND EQUITY
- Market share & market rankingMarket share & market ranking- Brand stability & track recordBrand stability & track record- Stability of product categoryStability of product category- InternationalityInternationality- Market trendsMarket trends- Promotional supportPromotional support- Legal protectionLegal protection
are used to evaluate brandsare used to evaluate brands
POPULAR EVALUATION POPULAR EVALUATION METHODSMETHODS
• Brand – earnings multiple Brand – earnings multiple approachapproach
• Royalty bases approachRoyalty bases approach• Profit split approachProfit split approach• Brand auditsBrand audits• Brand inventoryBrand inventory• Brand exploratoryBrand exploratory• Brand trackingBrand tracking
BRAND – EARNINGS MULTIPLE BRAND – EARNINGS MULTIPLE APPROACHAPPROACH
- Involves determination of brand strength scoreInvolves determination of brand strength score- Assessment of brand value / brand earnings Assessment of brand value / brand earnings - Charging adequate returns on capital Charging adequate returns on capital
ROYALTY BASES APPROACHROYALTY BASES APPROACH
Amount of hypothetical royal income Amount of hypothetical royal income that could be generated if the subject that could be generated if the subject brand were leased by an independent brand were leased by an independent third party owner to business currently third party owner to business currently using the brandusing the brand
PROFIT SPLIT PROFIT SPLIT APPROACHAPPROACH
The firm assumes that an The firm assumes that an independent third party owns the independent third party owns the brand and licenses it for an associate brand and licenses it for an associate profit.profit.
The firm has to estimate the amount The firm has to estimate the amount of profit that could be split between of profit that could be split between the brand and other tangibles. the brand and other tangibles.
BRAND AUDITSBRAND AUDITS- Customer focused exerciseCustomer focused exercise- Series of procedures involved to assess the Series of procedures involved to assess the
health of the brand.health of the brand.- Suggests ways to improve equitySuggests ways to improve equity
1.1. Are the current sources of brand equity Are the current sources of brand equity satisfactory?satisfactory?
2.2. Do certain brand associations need further Do certain brand associations need further strengthening?strengthening?
3.3. Does brand lack uniqueness?Does brand lack uniqueness?
4.4. What brand opportunities exists and what What brand opportunities exists and what potential challenges exists?potential challenges exists?
With this marketer can develop a market plan to With this marketer can develop a market plan to maximize long term brand equity.maximize long term brand equity.
BRAND INVENTORYBRAND INVENTORY
- Purpose : to provide a current, Purpose : to provide a current, comprehensive profile of how all the comprehensive profile of how all the products and services sold by a company products and services sold by a company are marketed and branded.are marketed and branded.
- Profiling each product or service Profiling each product or service requires identifying all associated brand requires identifying all associated brand elements as well the supporting elements as well the supporting marketing program!marketing program!
- Helps to suggest what consumers Helps to suggest what consumers perceptions may be.perceptions may be.
BRAND EXPLORATORYBRAND EXPLORATORY- Brand exploratory is also a research activity Brand exploratory is also a research activity
conducted under what consumers think and feel conducted under what consumers think and feel about a brand.about a brand.
- Prior research knowledge is importantPrior research knowledge is important- Therefore, better understanding of customers Therefore, better understanding of customers
perception.perception.- Additional research is also required to see how Additional research is also required to see how
customers shop and use products. customers shop and use products. - Durecell learnt that its customers had problems Durecell learnt that its customers had problems
removing tab from its hearing batteries, as a result removing tab from its hearing batteries, as a result introduced Easytab.introduced Easytab.
BRAND TRACKING:BRAND TRACKING:- Collecting information on routine basesCollecting information on routine bases- Understanding of how much of brand valus is Understanding of how much of brand valus is
lacking or needed. lacking or needed.
MANAGING MANAGING BRAND EQUITYBRAND EQUITY
Brand reinforcementBrand reinforcement Brand revitalizationBrand revitalization Brand crisesBrand crises
- Brand reinforcementBrand reinforcement: Kodak, Wrigley's, Coca-Cola, Heinz : Kodak, Wrigley's, Coca-Cola, Heinz continuously survived because they kept improving their continuously survived because they kept improving their products based on customers requirements. Eg., Kellogsproducts based on customers requirements. Eg., Kellogs
- Brand revitalization:Brand revitalization: Changes in customer tastes and Changes in customer tastes and preferences, emergence of new competitors. Dew brands preferences, emergence of new competitors. Dew brands have made compulsive come backs though they have made compulsive come backs though they disappeared due to hardships. disappeared due to hardships.
- Brand crises: Brand crises: the main idea is to be swift and sincere in the main idea is to be swift and sincere in branding activities. After initial experiences with serious, branding activities. After initial experiences with serious, potential and crippling brand crises they still suffer potential and crippling brand crises they still suffer problems in branding . problems in branding .
THANK YOUTHANK YOU