01 Branding as a Concept Unit VI

Branding

Dr.Ambedkar Business School/MJSiddiqui/2010

How it all began.. Branding existed even before the

word “Brand” was coined Earliest evidence of branding are in

the ancient civilizations of Romans & Greeks traders and producers.

Earliest examples of branding:Message inscriptionsTown criersMarks & Symbols


EtymologyOrigin in the Norwegian word

‘brandr’Meaning ‘to burn’The marks, by burning, made by

farmers on the livestock to differentiate their cattle from those of others

This practice continued by the sixteenth century distillers to burn marks on their kegs or wooden containers of wine.


Evolution of BrandingBranding is linked to Uniformity &

HomogeneityQualifiers are require to separate

similar or identical entities. Uniformity gives birth to

branding.Earliest names of brands were

linked to the creaters name:Eq.: Levi’s, Smirnoffs, Ponds,

Mercedes Benz, Rolls-Royce, Ford, Bugatti etc.


Names & Brands The names of creators began to be

replaced by places:Eq.: London, Polar, British, Arctic etc.

Then by famous people:Eq.: Lincoln, Hilton, Tommy

Then by Pleasing words from latinEq. : Calligraphy, Cuticura etc.

Even Animals:Eq.: Kangaroo, Cobra, Deer, etc


Names & Brands As also the words that indicate

‘status’Eq. : Golden, Royal, Premium, Regal, Kings,Dukes

Then there were the artificial names

Eq.: Hummer, Kodak, Captain Cook, etc.


Brands & Products There has been a confusion between

Products & Brands. ‘A product is anything that can be offered to

a market to satisfy a need or a want’Eq.: Physical Goods, Services, People, Places, Experience, organizations, Events, etc.

Concept of Product has a wider meaning and not just confined to commodities.

In the words of Levitt “ there is no such thing as a commodity, all goods can be differentiated.


How Products can be differentiated A product should be visualized to

have four levels:1. A basic & rudimentary thing2. Must satisfy minimal expectation3. Must exceed this level of expectations4. Potential product level: what more remains to be done.

These provide the opportunities for diferentiations.


How brands can differentiate Brands help identify products Brands help specify, choose &

recommend the products Brands help in communicating ,

‘what the it stands for’ Brands signify ‘what it does’ Brands lift products to higher plane.But brands exist, because of-and for-

the CUSTOMER


Brand Perspectives A product is merely a physical

object What customer needs is a

satisfier not just objects A consumer has both Rational &

Emotional dimension to satisfiers. Branding gives customers

reasons to buy and use the products.

Banding is actually a connecting device


What Values Customers tend to satisfy using products & services?1. Functional Value2. Social Value: A position in

society3. Emotional Value: Feeling of Joy,

respect..4. Epistemic Value : Knowledge &

Learning5. Situational Value: Helping in a

situation


BRAND PERSPECTIVES:

Visual / Verbal Perspective : Logo, & Words Positioning Perspective: Owning a “name” Value Perspective: Three dimensional

A. Functional: performance aspectB. Expressive : Customers expressionC. Central : Religious, National or political

Brand Image Perspective: Symbolizing Added Value Perspective: Brand adds value Perceptual Appeal Perspective: Rational,

Sensory & emotional appeal Personality Perspective: Customers see the

personality of a ‘BRAND’


So…What is a Brand? It’s a perceptual entity which

lives in the mind of a consumer. Brand are a source of creating

competitive superiority. Brands build’s up prejudice in the

customers mind. It comprises of symbols, words,

object and concept all at one and the same time.


Why Brands make sense There is a brand explosion Simple carbon copies are being

made. Commoditization is causing price

wars Companies require increased

differentiation. The competition need to be

curbed & new category needs to be created.

Brands: The Full PerspectiveIt’s a perceptual EntityIt can have a: Name Symbol Design or a combination of aboveBrands help the process of selecting & rejecting products.Brands help create a prejudice in the customers mind


Brands: The Full Perspective How Symbols help? What Color Signify? What impact does Words have? How Design discriminate?


Brands: Emotional HijackingBy Daniel Goleman There are two fundamentally

different ways to construct mental life.

The Rational Mind: Conscious, Aware, Reflects &

ponders The Emotional Mind:

Impulsive, Powerful and illogical


What are the growth Codes Benefits & Promises: Objective & Subjective Superiority Norms & Values:

Social Ethical & Morals of the Society

Identity & Self Expression Emotions & Love


Brand Equity A renowned designer A well known author An established painter A popular Doctor An prominent lawyer A successful Movie director/actorThese are all examples of easy to

“buy” propositions.


Brand Equity: DefinitionThe Managers Perspective: BE can be thought of as the additional cash

flow achieved by associating a brand with the underlying product or service …Alexander Biel

BE is the difference between the value of the brand to the consumer and the value of product without the branding…Josh McQueen

It is the residual equity that remains after you compare the blind and identified version of the same product…Richard Clay


Brand Equity: DefinitionThe Academicians Perspective: The incremental cash flow which accrue to a

branded product over and above the cash flow which would result from the sale of a product …Simon & Sullivan

Specific attribute beliefs and global evaluative beliefs consumers have learned to asociate with a brand name…John & Loken

The added value with which a given brand endows a product.. A name, symbol design or matk that enhances the value of product beyond its functional purpose…Faquhar


Brand Equity: Financial Perspective Companies with strong brands are less

risky. They enjoy good distribution, which help

in maintaining high market share High Market share means higher price

points and better margins Better competitive positioning due to

lower price elasticity relative to competitors.

Will act as barriers to competition High brand loyalty sustains future sales


Brand Equity: Consumer Perspective Brand Awareness +Learning occurs Brand Salience

+Association builds Brand Attitude

+ Preference forms Brand Loyalty


Issues in Branding

Discuss!Brand Explosion: The impact?


Category Development Index (CDI):It is an indicator of how much a category of products

have penetrated into the market (i.e. how widespread the usage of a particular product is or is not?)

Brand Development Index (BDI):It is an indicator of how much market share does a

particular brand ( A low BDI shows a low market share & High BDI reflects a higher market share.

(High BDI but Low CDI & Low CDI but high BDI)

Branding strategy: Some Definitions


Branding strategy: Some Definitions Company Brand: Brands that

identifies the parent company. (TATA, Reliance)

Group Brand: A brand that is used in more than one category ( Yamaha)

Single Brands: The brand name is restricted to a single product category. (Ariel, Dettol)


Branding strategy: Some Definitions Brand Stretching: Brand Retrenching: Brand Extension: Line Extension: Brand Flanking: Master Brands:


Definitions: Brand Stretching Brand Retrenching: Using the same brand name for a

different product category.Nestle –Nescafe CoffeeNestle – Chocolate BarsNestle – Energy Drinks


Definitions: Brand Retrenching Brand Retrenching: When companies stop using a

brand or sell it in order to focus on niche segments or stronger brands it already possess.

MUL: 1000/ Esteem/800


Definitions: Brand Extension Brand Extension: When companies use an existing

brand name to venture into new or a modified products or service

Colgate TotalGillette SensorTata SafariReliance Digital


Definitions: Line Extension Line Extension: When companies expand a line of

products as in case of variantsIndigo ; Indigo Marina; Indigo

Marina DLXLux , Lux International, Surf, Surf Excel,


Definitions: Brand Flanking Brand Flanking: A new brand (Flanker) is

introduced into a product category where the company already exists (A line extension)

HUL: Surf, Rin, Wheel.Cadburys: 5 Star, Fruit & Nut,

BournvilleP&G: Ariel & Tide


Definitions: Master Brands Master Brand : Creation of a brand by retrenching

the brands and then creating sub-brands and brand extension.

CadburyNestlePondsRexona

Issues in Branding: Stretch or RetrenchThree fundamental Questions: Does it make strategic Sense? Does it fit into the brands equity? Does it make a profitable venture?Three Fundamental Reasons: Exploit competitive weakness Answer to changes in markets (tech) Alterations in target (Ageing,

Demand)Dr.Ambedkar Business School/MJSiddiqui/2010


Brand Extensions: Some InsightsWhy firms do extensions: A new product gets instant recognition Saves cost of launching a new brand Leverage an existing brand More significant in case of premium

brands If extended to an unrelated category,

then the benefits are maximum Extensions are actually expansion of

the brand family


Brand Extensions: Some InsightsBrand extensions outside the

category: An extension of brand to altogether

new category A brand is leveraged to maximum Leverage an existing brand A risk of customer rejecting the

extension cannot be ruled out. This may result in causing damage to

the parent brand.


Brand Extensions: Some Insights

How brand extension can be Successful:

Consistency & Similarity with the parent brand: Taste, ingredients, etc.

Falling in the same area of expertise will give the credibility to extensions.

The mothers brands benefits must be transferable to the extension.


Brand Extensions: RisksWhat damages can be caused: Dilute the focus from the current

portfolio If not positioned appropriately,

can cannibalize the parent brand If customer does not see value

transfer then extensions fail causing losses.


Brand Stretching: IssuesThe Brand stretching depends

on its character:1. Product Brand: where a brand identifies a productExamples- ?SurfDettolXeroxDinshaws?...locally


Brand Stretching: IssuesThe Brand stretching depends on

its character:2. Formula Brand: where a brand identifies a formula or a

set procedure for making a productExamples- ?GitsDharaMothers pickleWaghmare Masale?...locally


Brand Stretching: IssuesThe Brand stretching depends on its

character:3. Know-how Brand: where a brand identifies an expertise that a

brand possessExamples- ?Sony.. Miniaturization & robotics &

portabilityXerox.. Photocopying & Documents MgmtAmul.. Milk processingConcrete Developers?...locally



character:4. Interest Brand: where a brand identifies the core spirit

or the central interest of the brandExamples- ?Apple.. High tech gadgetsNike.. WinningSamsung.. Medium quality white goodsHaldirams?..packaged snacks...locally



character:5. Philosophy Brand: where a brand transforms the product into a

a philosophical realm very different from a physical reality

Examples- ?CartierRolls-RoyceArmani, Parker, D&G, Nakshatra, GiliVicco & Baidyanath?...locally


Brand Stretching:

Discuss!

Can Brands change their character?


Brand Extensions: New Trends

01 Branding as a Concept Unit VI

Documents

Transcript of 01 Branding as a Concept Unit VI