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