THE POWER OF BRANDING

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19-05-2016

A Seminar by

Mohan Kumar G.2nd Sem., M.Tech. (M.E.M.),

S.J.C.E., Mysore.

Plan of PresentationIntroduction to Branding

What ‘a brand is not’?

What ‘a brand is’

The Power of Branding

Why Branding is so Important?

Brand Building Strategies

References

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Introduction to BrandA brand is a name, term, sign, symbol, or design, or a combination of these, that identifies the maker or seller of a product or service.

History of Branding:

The word "brand" derives from the word "brandr" meaning "to

burn" - recalling the practice of producers burning their trade

mark (or brand) onto their products.

The oldest generic brand, in continuous use in India since the

Vedic period is the herbal paste known as Chyawanprash,

consumed for its purported health benefits and attributed to a

revered rishi (or seer) named Chyawan.

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Around 1900, James Walter Thompson published a house ad explaining trademark advertising. This was an early commercial explanation of what we now know as branding. Companies soon adopted slogans, mascots and jingles that began to appear on radio and early television.

By the 1940s, manufacturers began to recognize the way in which consumers were developing relationships with their brands in a social/ psychological sense.

Manufacturers quickly learned to build their brands‘ identity and personality such as youthfulness, fun or luxury. This began the practice we now know as "branding" today, where the consumers buy "the brand" instead of the product.

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What is a Brand?Consumers view a brand as an important part of a product, and branding can add value to a consumer’s purchase. Customers attach meanings to brands and develop brand relationships. As a result, brands have meaning well beyond a product’s physical attributes.

Branding is an effort to give a unique identity to the company’s products and create emotional associations with consumers.

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Consumer Buying Behaviour

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What ‘a Brand is Not’

Logo

AdvertisingBrand

Sponsorships

Public Relations

Marketing

Naming

Product

Brand is rational and emotional

“Brand can drive future sales growth, pricing power and profit margins - strong brand translates into solid

future EPS growth

“I’ve always just been

a Nike person”

“Brand is an intangible asset, but it does have value and can be measured even

though it’s not on the balance sheet”

“I would rather feel bad in Maine then

good anywhere else in the world”

“Wherever you go, there are three icons that everyone knows: Jesus Christ, Pele and

Coca-Cola”

“Companies that have a brand, and are able to

monetize that brand, are tremendously profitable”

RATIONAL EMOTIONAL

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Blind v/s Brand test - Pepsi v/s Coca-Cola

Strong brands generate greater demand

Share

Pric

e share

$

Unbranded curve

Branded curve

In 2011, 35% of U.S. consumers polled said they would pre-order the iPhone 5…

sight and price

unseen

BRAND EQUITY

MODEL OUTCOME

Funds at any stage, are chasing demand so they can execute their strategy.Brand is the conduit between trust and demand for funds at any stage

Growing

Proven

Established

Size (AUM) < $500MStrategic priority: Sourcing investors

FUND STAGE

Size (AUM) $500M - $1B Strategic priority: Closing funds to new investors

DE

MA

ND

TRUST

Size (AUM) > $1B Strategic priority: Seeding additional funds

Why Branding is so Important?

Vs

What a good brand doesStrengthens employees loyalty

Attracts clients/customers

Keeps current relationships strong

Builds confidence

Builds feelings of security and trust

Creates a memorable, positive experience

Creates better choices for the customer

Being distinctive in the market

Improved perceptions of product

Greater loyalty

Less vulnerability to competitive marketing actions

Less vulnerability to crises

Larger margins

More inelastic

Greater trade cooperation

Increase marketing communications effectiveness

Possible licensing opportunities

Advantages of Strong Brand

The Role of BrandsIdentify the maker

Simplify product handling

Organize accounting

Signify quality

Create barriers to entry

Serve as a competitive advantage

Secure price premium

Why Brands are Costly?Because nowadays products & services have

become alike, brands came to distinguish them, HOW?

Branded lifestyle is extended to brand categories, saves cost on company

Creates relationship between brand & consumer that will lead to customer loyalty.

Add emotion and trust

Creates lifestyles that inspire the consumer and affects his lifestyle

The combination of emotions, relationships, lifestyles and values allows brand owners to charge a price premium for their products and services, which otherwise are barely distinguishable from generics

Strategies of Building Great Brands

“The degree of consumer attachment to a brand.”

Recognition

Preference

Insistence

Awareness of name, benefit and package

Is useful, consumer will buy if available…evoked setWill search for; must have

Branding Objective

Creates in the mind of the customers’ expectation - the perception - that there’s no other product or service quite like this branded one!

Brand equity is the added value endowed on products and services, which may be reflected in the way consumers, think, feel and act with respect to the brand.

A brand promise is the marketer’s vision of what the brand must be and do for consumers

Building Brand Equity

CompanyProduct A

Product B

Product PackagingWebsites

Advertisements

A brand is a promise. A promise to achieve certain results, deliver a certain experience, or act in a certain way. A promise that is conveyed by everything people see, hear, touch, taste or smell about your business.

logo

Integrity of Brand

Guess Who Am I ? What does the followingsymbols mean to you?

1) Chicken, An old man, with white hair and beard, name consists of 3

letters? 2) Have a break, have a ....

Brand Recognition / Equity - awareness, loyalty, quality, emotion

Brand Preference / Loyalty - the degree to which customers are committed to further purchases.Ex:- I will always buy Reebok (Brand Insistence)

Brand Awareness -your product is the first that comes to mind in a certain product category.Ex:- Jeans-Levi’s, Walkman - SONY

Brand Association - the link to favourable images, celebrities, geographic regions.Ex:- Coorg Coffee, Mysore Silk

The power of

Brands

Best Global Brands of 2015 as per Interbrand Ranking

Best Global Brands of 2015 as per Interbrand Ranking

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References1. www.google.com

2. https://en.wikipedia.org/wiki/Brand

3. http://interbrand.com/best-brands/best-global-brands/2015/ranking/

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Thank You