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Brand & Brand Management

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Branding

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What is a Brand? A brand is the totality of perceptions and experiences

surrounding a product, a service, an organization orindeed a charity Ihankinson, 2001)

A product is something that is made in a factory; a brand is

something that be bought by a consumer. A product can be

copied by a competitor; a brand is unique (Stephen King)

A brand is a set ofpromises as it implies

trust, consistency and a defined set of

expectations (Davis, 2000)

A brand is a distinguishing name and/or symbol intended to

identify the goods and services of one seller and to differentiate

those goods and services from those of competitors (David Aaker)

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What is a Brand?

Compass for decision making

The brand and the business are inextricably linked

It shapes the idea of what the company is at its core

Collective understanding a single unifying vision

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What is brand simple words

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A name, term, sign, symbol or design, or acombinationA name, term, sign, symbol or design, or acombination

Identifies the goods or services of a sellerIdentifies the goods or services of a seller

differentiates them from competitorsdifferentiates them from competitors

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What is a brand? A brand is a mixture of attributes, tangible and intangible,

symbolized in a trademark, which, i f managed properly, creates

valuevalue and influence.

"Value"has different interpretations: from a marketing or consumerperspective it is "the promiseand

deliveryof an experience"; from a business perspective it is "the security of future earnings"; from a

legal perspective it is "a separable piece of intellectual property."Brandsoffer customers a means to

chooseand enablerecognitionwithin cluttered markets.

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The Role of Brands

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Identify the maker

Simplify product handling

Organize accounting

Offer legal protection

The Role of Brands

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Signify quality

Create barriers to entry

Serve as a competitive

advantage

Secure price premium

What is Branding?

Branding is endowing products andservices with the power of the brand.

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What is a Brand Promise?

A brand promise is the marketers vision ofwhat the brand must be and do for

consumers.

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Clear Promise and Associations

Brands make promises

Strong brands have a clear meaning a unique promise

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Four Attributes of Strong BrandsFour Attributes of Strong Brands

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Excels at delivering anticipated benefitsExcels at delivering anticipated benefits

Communicates consistent brand messagesCommunicates consistent brand messages

Priced to meet perceptions of valuePriced to meet perceptions of value

Positioned optimallyPositioned optimally

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Brands Superior Customer Value

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Symbolic ValueActs as a symbol that expresses

values and identitiesHalo effect

Experiential ValueA perceptual frame that

highlights particularbenefits/experiences for

cognitive misers

Relationship ValueCustomers can trust the firm to

go the extra mile in the future

Reputation ValueSignalling mechanism to

increase customers confidencein quality and reliability

(Holt, 2003)

Brands Organizational Value

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Branding enhances:

The effectiveness of marketing strategies (i.e. promotion)

Brand loyalty greater profitability (costs less to retain

customers than to acquire new ones)

Opportunities to launch brand extensions

Prices and margins resulting from a competitive

advantage Stronger channel relationships, bargaining power

Branding challenges?

Brand EquityThe set of brand assets and liabilities linked to the brand, its name, and symbol,

thats adds or subtracts value to a product or service for a firm and/or its

customers (David Aaker)

The incremental amount your customer will pay to obtain your brand rather than aphysically comparable product without your brand name (Joel Axelrod)

The sum of all distinguishing qualities of a brand, drawn from all relevantstakeholders, that results in personal commitment to and demand for the brand;

these differentiating thoughts and feelings make the brand valued and valuable.

BRAND EQUITY

Consumer Equity Financial Equity

Mental Equity Behavioural Equity(Franzen, 1999)

Brand - Commodity

= Brand Equity

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Brand Knowledge based on

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Knowledge

Thoughts

Experiences

BeliefsImages

Feelings

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What is Brand Management? Brand Management

Practical ly this involves managing the tangible and intangibleaspects of the brand.

For product brands the tangibles are the product itself, the packaging, the price,etc. Forservice brands,the tangiblesare to do with the customer experience- theretail environment, interface with salespeople, overall satisfaction, etc. Forproduct, service and corporate brands, the intangibles are the same and refer tothe emotional connections derived as a resu lt of experience, identity,communicat ion and people. Intang ib les are there fore managed v ia the

manipulation of identity, communication and peopleskills.

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What is Brand Strategy? Brand Strategy

A plan for the systematic development of a brand to enable i t to

meet i ts agreed objectives. The strategy should be rooted in the

brand's vision and driven by the principles of differentiation and

sustained consumer appeal. The brand strategy should influence

the total operat ion of a business to ensure consistent brand

behaviors and brand experiences.

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What is Brand Positioning?

Brand PositioningThe dist inct ive posi tion that a brand adopts in i ts competit ive

environment to ensure that individuals in its target market can tell

the brand apart from others. Posit ioning involves the carefu l

manipulationof every element of the marketing mix.

Target Market The market segment or group of customers that a

company has decided to serve, and at which it consequently aims

its marketing activities.

Brand Architecture

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HOUSE

OF

BRANDS

ENDORSER

BRANDS

SUB

BRANDING

BRANDED

HOUSE

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HOUSE

OF

BRANDS

ENDORSER

BRANDS

SUB

BRANDING

BRANDE

HOUSE

BRANDED

HOUSE

disadvantages Biggest Reputational Risk of All

Risk Averse

M&A Issues

Limits Niche Markets

Weaker against specialist brands

advantages Maximum Economies of Brand

Single Strategic Focus

Employer Brand Strength

Controlling/Egotistical Leader

International Businesses

Familiarity

HOUSE

OF

BRANDS

ENDORSER

BRANDS

SUB

BRANDING

BRANDE

HOUSE

Sub

branding

advantages Segment Coverage

Market Evolves within the Brand

Relative protection for Parent Brand

Lower Launch Costs

Share of Mind & Shelf Licensing Option

Revitalisation of Parent Brand

disadvantages Loss of Strategic Focus from core

Spread of Personnel

Lose core associations

Still potential risk for parent brand

Weaker against Specialist Brands

HOUSE

OF

BRANDS

ENDORSER

BRANDS

SUB

BRANDING

BRANDE

HOUSE

Endorser

brands

disadvantages Some Reputation Risk

Vulnerable to Boycotting

advantages Fits traditional employee model

Flexibility & Scale Combined

CSR & Investor Relations

Product Launching

Contradictory Category Presence

More freedom *with support

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HOUSE

OF

BRANDS

ENDORSER

BRANDS

SUB

BRANDING

BRANDED

HOUSE

House

Of

brands

advantages Targeting Different Segments

Allows for Competing Brands

Easier to create Fighter Brands

Avoids channel conflict

New Innovations / Experiments

M&A Flexibility

disadvantages Low Economies of Brand

Low Social Capital

Strategic Neglect of Smaller Brands

Super Complexity

Quakerism

Multi Product Vs. Multi Branding

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Multi Product Branding

Selecting the Brand Relationship Toward a Branded House

o Does the master brand contribute

to the offering by adding:

Associations enhancing the value

proposition?

Credibility through organizational

associations?

Visibility?

Communication efficiencies?

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Toward a House of Brands

o Is there a compelling need for a

separate brand because it will:

Create and own an association?

Represent a new, different

offering?

Avoid an association?

Retain/capture customer brand

bond?

Deal with channel conflict?

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Brand Growth

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Leveraging The Brand

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New brandsi.e. Unilever

Line Extensioni.e. BMW

Brand Extensioni.e. Nike

Multi brandsi.e. GM Motors

Product Category

Brand

New

Existing

NewExisting

One Brand: Three Examples

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Three Kinds of Extension

Line Extension Brand Extension CoBranding

Leveraging Brand Equity

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Brand Building

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Brand Touch points

Brands engage customers and other stakeholders in many differentways ranging from advertising, to products, to people

Each touch point builds up an experience that endures well beyond

the purchase.

It defines and reinforces the perceptions that customers have about

the brand.

Conversely, it is equally powerful at defining negative perceptions of

a brand.

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Which touch points drives purchase andWhich touch points drives purchase and

which ones are simply nice to have?which ones are simply nice to have?

Touch point Mistakes Targeting too many market segments

Fragmented experience

Conflicting perceptions

Dilution of the brand investment across too many touch points

Time and resource constraints

Unable to deliver everything at a superior standard

Competing on basic factors only

Differentiators one daystandard business practice the next

Benchmarking and best practice

Relying on customer myths to prioritize choices

Unable to make hard choices

Lack of hard data on touch points

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