BRAND EQUITY BRAND IDENTITY

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BRAND EQUITYBRAND IDENTITY

PRODUCT LINE EXTENSIONS

BRAND EXTENSIONS

PRODUCT MIX DECISIONS

BRAND EQUITYBRAND EQUITY

BUILDING STRONG BRANDS BUILDING STRONG BRANDS

BUILDING STRONG BRANDS

• BRAND STRENGTH= DIFFERENTIATION * RELEVANCE

• BRAND STATURE=ESTEEM*KNOWLEDGE• ESTEEM BASED ON PQ• KNOWLEDGE –CUSTOMER NOT ONLY

AWARE OF BRAND BUT ALSO UNDERSTANDS WHAT THE BRAND STANDS FOR.

• Higher Esteem than knowledge means brand has unrealized potential .

• eg National Geographic,3 M.• Low Esteem with higher knowledge-more

people know what brand stands for. • Exxon, MTV, Cigarette , Alcohol brands• Loosing penetration, serving market that

has polarized opinion.

1.Brand Identity-how you aspire to be perceived based on core identity while Brand Image is how you are perceived

2.Value Proposition-consider emotional and self expressive benefits as well as functional benefits

3.Brand position-part of Brand identity and Value proposition

4.Execution-communicate the Brand Identity and Position

5.Consistency over time

6.Brand system-consistent and synergistic

7.Brand leverage-extend brands and develop co branding

8. Tracking Brand equity-awareness, perceived quality ,loyalty ,associations

9.Brand responsibility

10.Invest in Brands

Good Brands Help Build Good Brands Help Build the Corporate Imagethe Corporate Image

Family - Brand Decision Manufactures who brand their products face further choices. Four-brand name strategies can be distinguished: 1. Individual Brand Names : This policy is followed by

Procter & Gamble (Tide and Genesco Inc. LUX & LIRIL, by HUL, ).

2. A Blanket Family for all products : This policy is

followed by Heinz and General Electric, Tata,Bajaj 3. Separate Family Names for all products. This policy is

followed by Sears ( Kenmore for appliances, Kerrybrook for women's clothing, and Homart for major home installations),.

4. Company Trade name combined with industrial product

names "This policy is followed by Kellogg's (Kellogg's Rice Krispies and Kellogg's Raisin Bran).

MULTI BRANDING MULTI BRANDING STRATEGYSTRATEGY

When and why we should use ??

BRAND EQUITY / BUILDING

• The Role of Sponsorship

• The Role of Web

• The Role of Personality

• The Role of Non Media/Advtg

An Overview of Branding DecisionsAn Overview of Branding Decisions

BRAND IDENTITY

• Brand Identity-how you aspire to be perceived based on core identity

• while Brand Image is how you are perceived

THE PRISM OF IDENTITYTHE PRISM OF IDENTITY

PICTURE OF SENDER

Physique Personality

Relationship Culture

Reflection Self-image

The Prism of Brand Identity

• Physique-

• Combination of Independent characteristics including Logo which may be either prominent or dormant ;it is the brand basis, is a necessity, forming only the first stage in brand construction .

Physical Features of a Brand

-Associations

eg Asian Paints- Gatoo

Air India– MAHARAJA, Mercedez Logo

• Personality-

• Each Brand has personality. It acquires a character. We identify the brand with a person; we gradually form a picture

of that person by the in which he speaks of products or services.

The easy way to bestow personality on a brand is to provide it with a spokesperson, a star, or an animal.

Advtsg Firm Euro RSCG make Physique & Personality ,two major pillars of Brand Communication

Eg Provogue jeans Binami Cements

• Culture – INTERNAL

• The brand has its own culture from which every product derives. It implies a system of values ,a source of inspiration and brand energy.

• A Basic principles governing the brand in its outward signs (product and communication)

• Apple-the product of California culture ,symbolizes new frontiers• Mercedes personifies German values, with order strength prevailing.• The three box bodywork and overall symmetry • Adidas –embedded in collective culture ( sports ,soccer) while

Reebok’s or Nike’s highlighting virtues of Individualism• Coca cola- American ,Toyota –Japan, Evian French Culture

• Relationship ---brand is a relationship. It often provides the opportunity for an intangible exchange between persons; esp in service sector

• EXTERNAL

• Reflection—A brand reflects customer’s image ,the target audience image

• Self image-customer’s self image

• Is the target’ own internal mirror.

BRAND REINFORCEMENT STRATEGIES

• AND

• BRAND REVITALIZING

• STRATEGIES

BRAND EQUITY

• MEASUREMENT OF

BRAND EQUITY

BRAND EQUITY BRAND EQUITY

1. Assets & Liabilities 2. Core Values Assets A) Brand Loyalty - Inertia existing user has to continue use of a particular brand even if the switching costs are low. Advages : - reduces the vulnerabilities to competitors’ actions. - greater Trade leverage. - provides brand exposure & reassurance to new customers. B) Name Awareness C) Perceived Quality D) Brand Associations - basic Attributes - benefits - relative price economy - use / application - user / customer - celebrity / person

BRAND EQUITY BRAND EQUITY

- Life Styles / Personality - Product class - Competition - Country / geography - Intangibles

(E) Proprietary Assets Patents, Trade Marks, Logos etc. Brand equity ..... Soul Product ..... body (not carried away...)

eg. Life buoy.... health protection not just red carbolic... Soap.

(2) Core Values - Hierarchy

- Attribute based : Nirma - Low price, adequate, clearing

- Rational benefits - - Emotional benefits - Realm of Values Higher up in this hierarchy the core values of a brand

Less risk of being threatened by me -too brands.

MEASURE BRAND EQUITYMEASURE BRAND EQUITY

1) Price premiums generated

2) Replacement cost - cost of establishing comparable

3) Stock price movements

4) Future earning - discounted present value of all the

future earnings.

5) The BRAND EQUITY TEN

Brand Equity Measure

1.Refelect Brand Equity, tap full scope of BE.• AWARENESS,PERCEIVED

QUALITY,LOYALTY,ASSOCIATIONS

2.Reflect the Asset value ,focus on sustainable advantage not easily duplicated by competitors

• Truly drives the market ie price, sales and profit• 3. Sensitive• 4. Can be applied across brands, product

categories and markets

INTERBRAND’S TOP BRANDS

• LEADERSHIP• STABILITY• MARKET –GROWING OR STABLE SALES• INTERNATIONAL• TREND- SALES OF BRAND • SUPPORT- INVESTMENT• PROTECTION- LEGAL TM

TOP 10 BRANDS

• COCACOLA

• Kellog’s

• Mc Donald’s

• Kodak

• IBM.

PERCEIVED VALUE MODEL

• PRODUCT MIX DECISIONS

• PRODUCT LINE EXTENSIONS

• BRAND EXTENSIONS

PRODUCT LINEPRODUCT LINE

Group of products - closely related perform similar function. - sold to the same customer group/segment. - marketed thro’ the same channel - make up a particular price range

Additional items in the same product category .... new flavours, forms, ingredients. .... Different Packaging. Volume may Cannibalize .

PRODUCT MIX WIDTHPRODUCT MIX WIDTH

The concept of product mix and product line depth applied to selected Procter & Gamble products.

Detergents Toothpaste Bar Soap Deodorants Disposable diapers Coffee

Ivory Snow Gleem 1952 Ivory 1879 Secret 1956 Pampers 1961 Folger's 1963

1930 Crest 1955 Camay 1927 Sure 1972 Luvs 1976 Instant Folger's

Dreft 1933 Lava 1928 1963

Tide 1946 Kirk's 1930 High Point

Joy 1949 Zest 1952 Instant 1975

Cheer 1950 Safeguard 1963 Folger's Flaked

Oxydol 1952 Coast 1974 Coffee 1977

Dash 1954

Cascade 1955

Duz 1956

Ivory Liquid

Gain 1966

Dawn 1972

Era 1972

Bold 3 1976

Solo 1979

Product mix width

Product Line Extension Product Line Extension

PL extension - firm adds new versions of existing products or modifies these products so as to deepen their product line. The appeal is to existing market segments. PL Extension - Used to increase usage among existing customers by providing more options. This is possible when consumers are dissatisfied with the range of options and extending the line will result in net contribution of profits.

Product related Extensions

• Colgate –Tooth paste—Tooth brush

• Prestige cooker-Non stick ware

• Nirma Detergent powder-cake

• Frooti Parenthood brand launching various versions

• Cinthol moving to Talc from toilet soap

• Zodiac Belt from shirts, Ties -?

Product related Extensions

• More options to consumers cinthol• Cornering more retail shelf space• Creating some excitement around an old

brand • Extending core promise to new users- Ariel

super soaker• Managing changed market situation-

Colgate Gel to fight Close up

Line Extension

• Up gradation of Existing customers

• Unfulfilled Need

• Novelty

• Ponds Magic ,Nirma Cake, Life buoy Plus

Product Line Extensions

High end Low end -

Merits & Demerits of Stretching

Product Line Extension

Low end High end

Merits & other Demerits of Stretching

Un related Extensions

• Godrej ---- Soap ,Safety lock, Cupboard, hair dye, refrigerator, type writer,

• Tata --- Motor ,Tea, Power , Salt ,Steel

• Wipro --Computer, soap

Brand - Extension Decision

• A brand - extension strategy is any efforts to extend a successful brand name to launch new or modified products or lines, different from Existing segment or product line..

• If the current market is saturated • -firm may consider line expansion or• -new market segments.

HOW TO EXTEND BRANDHOW TO EXTEND BRAND

1) Identify Brand Associations. 2) Products linked to these Associations. 3)Select the best product for concept testing & Development.

- Fit to the product

Advantages

Consistency in the value perception

Competitive edge in the extension

not create any kind of dissonance

company Expertise, infrastructure & resources.

Perimeters of brand extensionPerimeters of brand extension

No-go area

Threats to brand's capital asset

Extension zone

Latent potential

Outer core

Spontaneous associations

Inner core

Lineextension

Ext. Zone

Strategic Brand Management

Brand Extension FAILS ?

WHY ?.

BRAND EXTENSION

• STRATEGIES

• MODELS

BRAND EXTENSION MODEL

• FAMILIARITY v/s ESTEEM

THE EXTENSION MATRIXTHE EXTENSION MATRIX

LOW BRAND FAMILIARITY HIGH BRAND FAMILIARITY

HIGH BRAND ESTEEM ESTEEM MAY NOT BE EXPLORABLE DUE TO NICHE BRAND (DONT GO)

EXTENSION MOST LIKELY TO SUCCEED (GO)

BAJAJ - m/cycle

MARUTI

LIFEBUOY

LOW BRAND ESTEEM RISK LESS & POTENTIAL MORE (GO)

SIGNAL TOOTH PASTE

ERASMIC BLADES

LYRIL BRIEFS

-VE BAGGAGE FOR EXTENDED PRODUCT (DON'T GO)

INDIAN AIRLINES

PREMIER PADMINI

Familiarity: How well known/ Awareness How high unaided recall How wide spread it its name

Esteem: Image Popular Satisfied are the current users. Level of inertia of the current users to stick to… Aspiration levels & the potential market. Brand Equity. Perceived Quality.

Brand ExtensionBrand Extension

Type of Brand and Ability to Extend.

(A) (B) (C) (D) (E)

Degree of product dessimilarity

Type of brand

Phitcsophy

Interest

Know-how

Formula

ProductType of brand

Philosophy

Interset

Know-how

Formula

Product

Degree of

Product dissimilarity

Under and over-exploitation of a brand capital asset.

TRANSACTION MARKETING V/s CUSTOMERS

RELATIONSHIP MARKETING

• THANK YOU

BRAND EQUITY BRAND IDENTITY

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