Strategic Brand Management

• The 1980s marked a turning point in how brands began to be viewed.

• Real value lies outside the business itself • Since 1991, buzz word is brand equity.• Companies now bought not production capacity

but brands (places in consumer’s minds). • There were 26 different ways to measure brand

equity in 1994. • Ratio of 20:25 times of price: earnings ratio.

Implications of strategic brand management

• Top management is now paying close attention to brands .• Brands are being treated as strategic assets,as realisation that Brand bldg leads to

Business Bldg

• New way of thinking (in terms of capitalizing) means umbrella/ source /master brands.

• End of dispersion &proliferation – Reducing the brand portfolio means fewer brands encompass more products e.g. in 1991 Nestle launched 101 new products worldwide but created only 5 new brands.

• Managing innovation allocation - Marketing manager & not brand managers decide innovation.

• Identity prevails over imageBrand image is how you are perceived & brand identity is how you aspire to be perceived.

• Exploiting brand equity – leveraging. Reducing a brand to only one product means

shrinking brand equity• Brand equity vs price war.New rules of Brand Mgt-seduce customers through shared

values,innovations • Addressing diversity of consumers and geographical mkts • Identity vs change• From transaction to relationships through functional,experiential and aspirational values• Knowing it takes more than Brand name to build a Brand

What is a product

A product is anything that is offered to a market to satisfy a want or a need. Products include physical goods, services, experiences, events, persons, places, properties, organizations, information and ideas .

• CORE BENEFIT

• BASIC PRODUCT - FEATURES, BENEFITS, DESIGN & STYLE, PACKAGING, BRAND NAME.

• EXPECTED PRODUCT - CREATES NO PREFERENCE

• AUGMENTED PRODUCT - TOTAL CONSUMPTION SYSTEM

• POTENTIAL PRODUCT

THE 5 LEVELS CONSTITUTE CUSTOMER VALUE HIERARCHY WITH EACH LEVEL ADDING MORE CUSTOMER VALUE.

BRAND

A BRAND IS ESSENTIALLY A SELLER’S PROMISE TO CONSISTENTLY DELIVER A SPECIFIC SET OF FEATURES, BENEFITS ,SERVICES AND VALUES TO BUYERS.A BRAND IS ABOUT INTANGIBLE AND TANGIBLE ASSOCIATIONS

A BRAND IS MORE THAN A PRODUCT

Organizational Associations

Country of Origin

User Imagery

Symbols

Emotional Benefits

PRODUCT

Features

Benefits

Style

Design

Brand name

package

Brand-Customer

Relationships

Brand Personality

Self-Expressive

Benefits Functional benefits

ROLE OF BRAND MANAGER

WHAT THE BRAND MANAGER’S JOB ENTAILS

RESPONSIBILITIES IN

•MARKETING DEPARTMENT

•SALES DEPARTMENT

• PRODUCTION DEPARTMENT / MATERIALS

• FINANCE DEPARTMENT

• SENIOR MANAGEMENT

BRAND MANAGER’S DUTIES

1. DAILY DUTIES - PRODUCT FACT BOOK, MOTIVATING SALES FORCE

& DISTRIBUTORS, MONITORING COMPETITION.

2. SHORT-TERM DUTIES - MONITORING CUSTOMER SATISFACTION, IMPROVING CUSTOMER VALUE, ANNUAL PLAN, PRODUCT IMPROVEMENTS ETC.

3. LONG-TERM DUTIES - MARKET OPPORTUNITIES, COMPETITIVE STRATEGIES

IDEALLY,

DAILY DUTIES - 45 - 55%

SHORT-TERM DUTIES - 20 - 30%

LONG-TERM DUTIES - 15 - 25%

COMPARISON OF THE ROLES OF THE PRODUCT MANAGER IN CONSUMER GOODS FIRMS AND INDUSTRIAL GOODS

FIRMS

ACTIVITY CONSUMER GOODS COMPANY

INDUSTRIAL GOODS COMPANY

1. Planning

2. Advertising

3. Sales promotion

4. Merchandising

5. Packaging, branding, labelling

6. Pricing

7. Product development, new products

8. Product line planning

9. Market research

Key duty

Creates plan

Originates, may manage

Recommends policies & plans

Makes recommendations

Studies and makes recommendations

Studies and makes recommendations

Recommends changes

Makes requests for studies

Key duty

Limited role

Suggests technical material

Limited role

Limited role

Bid pricing, estimating, volume pricing

Works with laboratories and may a approve modifications

Recommends and may have authority over mix

May do his own research

COMPARISON OF THE ROLES OF THE PRODUCT MANAGER IN CONSUMER GOODS FIRMS AND INDUSTRIAL GOODS

FIRMS

ACTIVITY CONSUMER GOODS COMPANY

INDUSTRIAL GOODS COMPANY

10. Production planning

11. Inventories and warehousing

12. Field sales and distribution

Forecasts sales volume

Estimates inventory needs

Recommends channels of distribution

Establishes mix and schedule

Estimates inventory needs

May be primary technical advisor to field

What is a Brand to a consumer ?

• Identifier • Differentiator • Signal of quality • Promise of consistent delivery of values• Symbol of Trust• Risk reducer .No risk, no brand• Unique set of benefits & associations

Functions of brand for the consumer

• Function Consumer benefit

• Identification Quickly identify the sought-after products.

• Practicality Savings of time and energy through identical repurchasing.

• Guarantee Surety of same quality no matter where or when you buy the product or service.

• Optimisation Surety of buying best product , best performer

• Characterisation Confirmation of your self-image .

• Continuity Satisfaction brought about through familiarity and intimacy

• Hedonistic Satisfaction linked to the attractiveness of the brand, to its logo, to its communication.

• Ethical Satisfaction linked to the responsible behaviour of the brand in its relationship with society (ecology, employment, citizenship, advertising which doesn’t shock).

Brand Concept

• Means brand meaning i.e. which is the different types of consumer needs brand intends to satisfy/satisfies

• Tangible: Functional/ Rational• Intangible :• Emotional• Experiential-sensory pleasure(sight, taste,

sound, smell or feel). • Symbolic/aspirational-selfconcept,self-

enhancement, ego identifier, role position or group membership

BRAND - MEANING

1. ATTRIBUTES

2. BENEFITS

3. VALUES

4. CULTURE

5. PERSONALITY

6. USER

DEEP V/S SHALLOW BRAND

HOW VALUES AFFECT BRAND CHOICE

BRAND CHOICE

CONDITIONALVALUE

SOCIAL VALUE

FUNCTIONAL VALUE

EMOTIONALVALUE

EPISTEMICVALUE

Defining & establishing brand values

• 1) Core brand values are the set of abstract associations (attributes & benefits) that characterize the 5 to 10 important aspects or dimensions of a brand.

• Core brand values are identified through mental maps

• 2) Brand mantra is the heart & soul of brand defined by short 3 to 5 word phrases that capture essence or spirit of brand positioning & brand value clearly delineating what the brand is & what it is not.

Brand Mantra

Brand function Descriptive modifier Emotional modifier

Disney Entertainment Family Fun

Nike Performance Athletic Authentic

• Brand mantras derive their power & usefulness from their collective meaning to employees & consumers.

What does Branding mean to BRAND MANAGER ?

• Brands endow products with meaning• Branding transforms product categories • Brand is a long – term vision• Brand is a living memory in consumers mind.• Brand is a genetic program

Branding is raising new questionsfor managers

• Classic strategic models talk about product portfolios whereas in reality companies have to manage their brand portfolios.

• Real brand management begins with a strategy & a consistent integrated vision.

• Its central concept is brand identity.

Underlying the brand is its programme

1. Why must this brand exist?

What would consumers be missing if the brand did not exist?

2. Standpoint.

From where does the brand speak?

3. Vision.

What is the brand’s vision of the future?

4. What are our values?

5. Mission.

What specific mission does the brand want to carry out in its market?

6. Know-how.

What is the brand’s specific know - how?

7. Territory.

Where can the brand legitimately carry out its mission, in which product category?

8. Typical products or actions.

Which products and actions best embody, best exemplify the brand’s values and vision?

9. Style and language.

What are the brand’s stylistic idiosyncrasies?

10. Reflection.

Whom are we addressing? What image do we want to render of the clients themselves?

Challenges facing Brand Builders

• Savvy Customers & decreasing brand loyalty

• Brand proliferation & lack of differentiation• Media fragmentation • Increased competition • Increasing promotional expenditure &

reduced advertising expenditure

WHY IS IT HARD IT BUILD BRANDS?

1. Pressure to Compete on Price

8. Short-Term Pressures of sales

7. Pressure to Invest Elsewhere

6. Bias Against Innovation

5. Bias Toward Changing Strategies

2. Proliferation of Competitors

3. Fragmenting Markets & Media

4. Complex Brand Strategies &Relationships

BUILDING BRANDS

Obstacles to the Branding Principles

1) Current corporate accounting treats any outlay where payback is uncertain (e.g. advertising) as an

expense not asset.2) Annual accounting - brand managers judged on

yearly results. 3) Product based accounting discourages product

managers from bolstering brand as a whole4) Even though advertising agency has own network

of partner companies in charge of name research, packaging, graphic identity, event,

communications (thus IMC), they cannot address strategic issues like brand portfolio management.

5) High turnover of brand managers 6) Failure to look at brand management as a system

& not piecemeal.

Seven Deadly Sins of Brand Management

1) Failure to fully understand meaning of brand

2) Failure to live up to brand promise

3) Failure to adequately support the brand

4) Failure to be patient with the brand

5) Failure to adequately control the brand

6) Failure to properly balance consistency & change with the brand

7) Failure to understand complexity of brand equity measurement & management.

Some Brand Marketing tradeoffs

STRATEGIC FINANCIAL Retaining customers vs. acquiring customers Short-run vs. long-run objectives Brand expansion vs. brand fortification Sales-generating vs. brand-building activities Product performance vs. brand image Accountable or measurable tactics vs. non-measurable Points of parity vs. points of difference tactics

Quality maximization vs. cost minimization

TACTICAL ORGANIZATIONAL Push vs. pull Global vs. local Continuity vs. change Top down vs. bottom up Classic vs. contemporary image Customization vs. standardization Independent vs. universal image Internal vs. external

Twenty-First –Century Branding

1. Relying on brand awareness has become marketing fool’s gold – Smart brands are more concerned with brand relevance and brand resonance.

2. You have to know it before you can grow it – Most brands don’t know who they are, where they’ve been, and where they’re going.

3. Always remember the Spandex rule of brand expansion – Just because you can doesn’t mean you should.

4. Great brands establish enduring customer relationships – They have more to do with emotions and trust than with footwear cushioning or the way a coffee bean is roasted.

5. Everything matters – Even your restroom. 6. All brands need good parents – Unfortunately, most brands come from

troubled homes. 7. Big is no excuse for being bad – Truly great brands use their

superhuman powers for good and place people and principles before profits.

8. Relevance, simplicity, and humanity – Rather than technology – will distinguish brands in the future.

Brand equity

What is Brand Equity

Is set of assets & liabilities linked to a brand, its name & symbol, that add to or subtract from the value provided by a product or service to a firm and/or to that firm’s customers.

Brand equity Is the added value endowed to products & services. It is an important intangible asset that has psychological & financial value to the firm.

• Customer based brand equity is the differential effect that past brand knowledge has on consumer response to the marketing of a brand. Thus power of brand lies in minds of consumers & what they have experienced/learned about brand over time.

A brand is said to have positive customer-based brand equity when consumers react more favorably to a product and the way it is marketed when the brand is identified as compared to when it is not. A brand with positive customer based brand equity results in consumers more accepting of new brand extension, less sensitive to price increase or withdrawal of advertising support or more willing to seek brand in new distribution channel.

Brand equity Contd of slide….

There are three key ingredients to this definition. First, brand equity arises from differences in consumer response. If no differences occur, then the brand name product can essentially be classified as a commodity or generic version of the product. Competition would then be probably be based on price.

Second, these differences in response are a result of consumer’s knowledge about the brand .Brand knowledge consists of all the thoughts, feelings, images, experiences, beliefs, and so on that become associated with the brand. In particular, brands must create strong, favorable, and unique brand associations with customers.

Third, the differential response by consumers that makes up the brand equity is reflected in perceptions, preferences, and behavior related to all aspects of the marketing of a brand.

Consumer knowledge,feelings and actions is what drives the differences that manifest themselves in brand equity. The quality of investment rather than quantity is critical factor.

Brand equity models

1) Brand Asset Valuator – Young and Rubicam (Y&R) developed a model of brand equity called Brand Asset Valuator (BAV). There are four key components – or pillars – of brand equity, according to BAV:

Differentiation measures the degree to which a brand is seen as different from others.

Relevance measures the breadth of a brand’s appeal Esteem measures how well the brand is regarded and respected Knowledge measures how familiar and intimate consumers are with the

brand.

Differentiation and Relevance combine to determine Brand Strength. These two pillars point to the brand’s future value, rather than just reflecting its past. Esteem and Knowledge together create Brand Stature, which is more of a “report card” on past performance.

Brand equity models Contd of Slide….

2) Aaker Model – 5 categories of brand assets & liabilities linked to a brand that add or subtract from the value of product/service

a) Brand loyalty, b) Brand awareness c) Perceived quality d) Brand associations e) Other proprietary assets e.g. patents,

trademarks, channel relationships

Brand equity models Contd of Slide….

3) Brandz – Is based on Brand Dynamics pyramid. According to this model, brand building involves a sequential series of steps.

• Presence. Do I know about it? • Relevance. Does it offer me something?• Performance. Can it deliver?• Advantage. Does it offer something better

than others?• Bonding. Nothing else beats it.

Brand equity models Contd of Slide….

4) Brand resonance Pyramid – Four steps to brand – building involves 6 brand building blocks.

• Brand salience relates to how often and easily the brand is evoked under various purchase or consumption situations.

• Brand performance relates to how the product or service meets customers’ functional needs.

• Brand imagery deals with the extrinsic properties of the product or service, including the ways in which the brand attempts to meet customers’ psychological or social needs.

• Brand judgments focus on customers’ own personal opinions and evaluations.

• Brand feelings are customers’ emotional responses and reactions with respect to the brand.

• Brand resonance refers to the nature of the relationship that customers have with the brand and the extent to which customers feel that they are “in sync” with the brand.

Brand Resonance Pyramid

4. Relationships What about you and me?

3. Response = What about you?

2. Meaning = What are you?

1. Identity = Who are you?

Intense active loyalty

Positive, accessible reactions

Strong, favorable & Unique brand associations

Deep, broad brand awareness

Resonance

Judgments Feelings

Performance Imagery

Salience

Brand Equity by David Aaker

BRAND EQUITY

NameSymbol

Provides Value to Customer by Enhancing Customer’s:

Interpretation/ Processing of Information

Confidence in the Purchase Decision

Use Satisfaction

Provides Value to Firm by Enhancing:

•Efficiency and Effectiveness of Marketing Programs

•Brand Loyalty

•Prices/Margins

•Brand Extensions

•Trade Leverage

•Competitive advantage

Perceived

Quality Brand Associations

OtherProprietary Brand Assets

Name

Awareness

Brand Loyalty

Brand Equity

Note:Strong brands are managed not for general

awareness but for strategic awareness i.e. to be remembered for right reasons & avoid being remembered for wrong reasons.

Perceived quality customer satisfaction ROI (having more impact than market share, R&D or marketing expenditure)

Brand loyalty is enhanced through loyalty programmes, customer clubs & database marketing.

Topof Mind

Brand Recall

Brand Recognition

Unaware of Brand

THE AWARENESS PYRAMID

Dominant brand is only brand recalled by high percentage of respondents

Importance of Brand Awareness

- Brand awareness & familiarity sufficient for favorable consumer response in low – involvement products

- Brand awareness plays important role in consumer decision-making through learning ,consideration, choice advantage

- Brand recognition vs brand recall : Brand recognition uses brand as a cue & brand recall requires consumers to retrieve brand from memory given product category, needs fulfilled, purchase/usage situation as cue

- Brand awareness is created by increasing familiarity of brand through repeated exposure (for brand recognition) & strong associations (for brand recall).

The Value of Brand Awareness

BRAND

AWARENESS

Anchor to Which Other Associations Can Be Attached

Familiarity Liking Signal of

Substance/Commitment

Brand to Be considered

Recognition Versus Recall: Graveyard Model

High

Low

Graveyard Mass Brands

Low High

x

Niche Brand

Recall

Rec

og

nit

ion

HOW TO ACHIEVE BRAND AWARENESS

1) Be different, memorable 2) Involve a slogan or jingle 3) Symbol/logo exposure 4) Publicity 5) Event sponsorship 6) Consider brand extensions 7) Using cues - characters, package 8) Recall requires repetition 9) Recall bonus – Strong TOM results in

brand salience that can inhibit recall of other brands.

Perceived quality

• Perceived quality can be defined as customer’s perception of overall quality or superiority of product or service with respect to its intended, purpose, relative to alternatives

• Perceived quality is different from:

1)Actual or objective quality

2)Product based quality –nature and quantity of ingredients, features, services included.

3)Manufacturing quality – zero defect goal.

The Value of Perceived Quality

PERCEIVEDQUALITY

Reason- to-Buy

Differentiate/Position

A Price Premium

Channel Member Interest

Brand Extensions

Quality Dimensions

Product Quality 1.Performance: How well does a washing

machine clean clothes? 2.Features: Does a toothpaste have a convenient

dispenser? 3.Conformance with specifications: What is the

incidence of defects? 4.Reliability: Will the lawn mower work properly

each time it is used?5.Durability: How long will the lawn mover last? 6.Serviceability: Is the service system efficient,

competent, and convenient? 7.Fit and finish: Does the product look and feel

like a quality product?

Contd of Slide …

Service Quality1.Tangibles: Do the physical facilities, equipment,

and appearance of personnel imply quality?2.Reliability: Will the accounting work to

performed dependably and accurately? 3.Competence: Does the repair shop staff have

the knowledge and skill to get the job done right? Do they convey trust and confidence?

4.Responsiveness: Is the sales staff willing to help customers and provide prompt service?

5.Empathy: Does the bank provide caring, individualized attention to its customers?

(A) How to deliver high quality

1) Commitment to quality

2) Quality culture – in organization, in its norms of behaviours ,symbols & values.

3) Customer Input

4) Measurement/Goals/Standards

5) Allow Employee Initiative

(B) Signals of High Quality (contd of Slide)

• Actual quality must be translated into perceived quality by offering signals/cues.

• Often key dimensions that are visible can be pivotal in affecting perceptions about more important dimensions which are difficult to judge.

• e.g. Stereos – large size means better sound • Tomato juice – thickness means quality. • In addition to brand’s product features (intrinsic cues),

other brand associations like advertising amount, brand name, price (extrinsic cues) also influence perceived quality.

• Price acts as a quality cue when other cues are not available, unknowledgeable customers, products like wine, perfume etc.

Perceived quality

• Perceived quality can be defined as customer’s perception of overall quality or superiority of product or service with respect to its intended, purpose, relative to alternatives

• Perceived quality is different from • 1) Actual or objective quality • 2) Product based quality –nature n qty of

ingredients,features,services included.• 3) Manufacturing quality – zero defect goal.

The Value of Perceived Quality

PERCEIVEDQUALITY

Reason- to-Buy

Differentiate/Position

A Price Premium

Channel Member Interest

Brand Extensions

Quality Dimensions

Product Quality 1.Performance: How well does a washing machine

clean clothes? 2.Features: Does a toothpaste have a convenient

dispenser? 3.Conformance with specifications: What is the

incidence of defects? 4.Reliability: Will the lawn mower work properly

each time it is used?5.Durability: How long will the lawn mover last? 6.Serviceability: Is the service system efficient,

competent, and convenient? 7.Fit and finish: Does the product look and feel like

a quality product?

Contd of Slide …

Service Quality1.Tangibles: Do the physical facilities, equipment,

and appearance of personnel imply quality?2.Reliability: Will the accounting work to performed

dependably and accurately? 3.Competence: Does the repair shop staff have

the knowledge and skill to get the job done right? Do they convey trust and confidence?

4.Responsiveness: Is the sales staff willing to help customers and provide prompt service?

5.Empathy: Does the bank provide caring, individualized attention to its customers?

(A) How to deliver high quality

1) Commitment to quality

2) Quality culture – in organization, in its norms of behaviours ,symbols & values.

3) Customer Input

4) Measurement/Goals/Standards

5) Allow Employee Initiative

Brand Associations

Associations, image & positioning• A brand association is anything “linked” in memory to a brand. • Association has level of strength which depends on many

experiences or exposures to communications & when supported by network of other links

• A brand image is a set of brand associations organized in a

meaningful way.• Brand Image or position represent perceptions which may not

reflect objective reality

• Brand image – many, varied, strong, favourable & unique associations in that order.

• Positioning implies Brand Manager’s Intention on how he would like his brand to be viewed by the consumers which he tries to communicate through marketing mix.

Associative network memory model

• Nodes represent stored information/concepts & links are strengths of association. Information may be verbal, visual, abstract, contextual.

Creating Brand image

1) Strength of brand associations – Created through direct experience (strongest), word of mouth, non-commercial sources, brand elements, secondary associations, marketing mix (weakest)

2) Favorability of brand associations – Choosing which associations to link to brand requires careful analysis of consumer & competition to determine optimal positioning for brand.

• Favorability depends on perceived desirability which in turn depends on relevance, distinctiveness & believability as perceived by consumers

• The firm should also see whether it can deliver based on its ability to perform, ability to communicate & sustainability of the associations.

3) Uniqueness of brand associations – Unique selling proposition (points of difference) may be product related or non-product related creates “reason why”.

The Value of Brand Associations

ASSOCIATIONS

Help Process/Retrieve Information

Differentiate/Position

Reason-to-Buy

Create Positive Attitudes/Feelings

Basis for Extensions

Brand-nameand symbol

Product attributes

Intangibles

Customer benefits

Relative price

Use/application

User/customerCelebrity/personLifestyle/personality

Product class

Competitors

Country/geographic area

BRAND ASSOCIATIONS

The Loyalty Pyramid

Satisfied Buyer with switching costs

Committed Buyer

Likes the Brand –Considers it a Friend

Satisfied/Habitual Buyer No Reason to Change

Switchers/Price Sensitive

Indifferent-No Brand Loyalty

The Value of Brand Loyalty

BRAND LOYALTY

Attracting New Customers:•Brand Awareness Created •Reassurance to New Customers

Time to Respond to Competitive Threats

Reduced Marketing Costs

Trade Leverage

Reduced Marketing Costs

Trade Leverage

Creating and Maintaining Brand Loyalty

Treat the Customer Right Stay Close to the Customer

Measure/Manage Customer Satisfaction

Create Switching Costs

Provide Extras

BRAND LOYALTY

Measuring Brand Loyalty

1) Behaviour Measures

a) Repurchase rates.

b) Percentage of total purchases.

c) Number of brands purchased.

2) Measuring satisfaction/dissatisfaction

3) Switching costs

a) Investment in a product

b) Risk of change

Contd of Slide…

4)Liking of the brand a)Liking b)Respect c)Friendship d)Trust e)Willingness to pay premium 5)Commitment a)Word of Mouthb)Interaction with product and companyc) Importance to person’s activities & personality.

CORPORATERESOURCES

The leverages of brand profitability

INVESTMENTS:PRODUCTIVITY, R & D KNOW-HOW, PATENTS

MKTG INVESTMENTSFORECASTING CHANGESOF CONSUMER VALUESAND LIFE STYLES

DISTRIBUTION INVESTMENTS (PROXIMITY, AVAILABILITY) AND COMMUNICATION

LEVEL OF OBJECTIVE QUALITYCOST OF QUALITY

BRAND RELEVANCE AND ADAPTATION TO ITS PRESENT MARKET

BRAND AWARENESS,IMAGE, LIKING AND FAMILIARITY

The leverages of brand profitability Contd of slide …

PERCEIVED VALUE VIS-À-VIS COMPETITION

COMPETITION -OTHER BRANDS-DISTRIBUTOR OWN BRANDS- HARD DISCOUNT

MARKET - INVOLVEMENT -PRICE SENSITIVITY- BUYING CRITERIA

LEVEL 0F SUSTAINABLE PRICE PREMIUM

INCREMENTALATTRACTIONAND LOYALTY

COST ADVANTAGESDUE TO MARKET LEADERSHIP

EXTENDING BRAND EQUITYBEYOND ITS MARKET

From brand assets to brand equity Brand

Awareness

+ Image

+ Perceived Quality

+ Evocations

+ Familiarity, Liking

____________________

= Brand Assets Brand added value,

perceived by consumers

- Costs of branding

- Costs of invested capital

__________________________

Brand financial value

(Brand equity)

Brand assets are a non-monetary measurement while brand equity is a monetary one.

From awareness to financial value

Brand assets Brand strength Brand value

Brand awareness Market share Net discounted cashflow attributable toBrand reputation (attributes, Market leadership the brand after paying the cost of benefits, competence, Market penetration capital invested to produce and run know-how, etc) Share of requirements the business and the cost of marketing Brand personality Growth rate Brand deep values Loyalty rateBrand imagery Price premium Brand preference or attac-hment Patents and rights

- Brand assets are learnt mental associations & affects.

- Brand strength is a measure of behavioural status.

- Not all of this brand stature is due to brand assets.

- Brand value is Brand’s worth in future.

Brand Identity

The Brand Identity System Brand Identity is a unique set of associations that the brand

strategist aspires to create or maintain. These associations represent what the brand wants to stand for

(core values, personality traits, relationships, how brand desires to be perceived) & imply a promise to customers

Brand identity should help establish a relationship between the brand and the customer by generating a value proposition involving functional, emotional, or self-expressive benefits.

Brand identity consists of twelve dimensions organized around four perspectives – the brand-as-product (product scope, product attributes, quality/value, uses, users, country of origin), brand-as-organization (organizational attributes, local vs global), brand-as-person(brand-personality, brand-customer relationships), and brand-as-symbol (visual imagery/metaphors and brand heritage).

Brand identity structure includes a core and extended identity.

Brand Identity Traps

BrandImageTrap

BrandPositioning

Trap

ExternalPerspective

Trap

Product-Attribute

Fixation Trap

BRANDIDENTITY

TRAPS

Brand Planning Model

Extended

Brand as Product 1. Product scope 2. Product attributes3. Quality/ value 4. Uses5. Users 6. Country of Origin

Brand as Organization7. Organization attributes (e.g., Innovation, consumer concern, trustworthiness) 8. Local vs. global

Brand as Person 9. Personality (e.g., genuine, energetic, rugged)10.Brand- customer relationships (e.g., friend, adviser)

Brand as Symbol 11. Visual imagery and metaphors 12. Brand heritage

STRATEGIC BRAND ANALYSISCustomer Analysis Competitor Analysis Self-Analysis Trends Brand image/identity Existing brand imageMotivation Strengths, strategies Brand heritageUnmet needs Vulnerabilities Strengths/capabilitiesSegmentation Organization values

BRAND IDENTITY SYSTEM BRAND IDENTITY

Core

Brand Planning Model Contd. Of slide

VALUE PROPOSITIONFunctional Emotional Self-expressive benefits benefits benefits

CREDIBILITYSupport other brands

BRAND – CUSTOMER RELATIONSHIPS

BRAND IDENTITY IMPLEMENTATION SYSTEMBRAND POSITIONING

Subset of the brand identity and To be actively communicated.value proposition. Providing competitive At a target audience. advantage.

EXECUTIONGenerate alternatives Symbols and metaphors Testing

TRACKING

Brand Identity Structure

1. Core Identity – Soul of a brand, fundamental beliefs & values of the brand & organization behind the brand.

2. Extended Identity – includes elements that provide texture & completeness.

Organizational Associations: Organization behind the brand

How Organizational Associations Provide Value

THE ORGANIZATIONCulture/values People Programs Assets/skills Visibility

ORGANIZATIONAL ASSOCIATIONSEnvironmentally sensitive Concern for customers. Community orientation Presence/success.Perceived quality Local vs. global. Innovative

Value Proposition or Customer Relationship

CredibilityExpertTrustworthyLiked

Internal CultureClarity Buy-in

Internal CultureClarity Buy-in

Brand Personality

• Brand Personality is set of human characteristics associated with a given brand.

• It includes such characteristics (gender, age, socio-economic class; lifestyle (activities, interests & opinions) as well as human personality traits (such as warmth, concern & sentimentality).

The Brand Personality Scale (BPS): The Big Five

• Sincerity (Bajaj,Tata, Hallmark, Kodak,colgate,VIP) -Down-To-Earth: family-oriented, small-town,

conventional, blue-collar, all-Indian - Honest: sincere, real, ethical, thoughtful, caring -Wholesome: original, genuine, ageless, classic, old-

fashioned -Cheerful: sentimental, friendly, warm, happy• Excitement (Axe,Elle18, Centrefresh, Benetton) -Daring: trendy, exciting, off-beat, flashy, provocative -Spirited: cool, young, lively, outgoing, adventurous, -Imaginative: unique, humorous, surprising, artistic, fun -Up-To-Date: independent, contemporary, innovative,

aggressive

The Brand Personality Scale (BPS): The Big Five Contd of Slide

• Competence (L&T,Intel, CNN, IBM) -Reliable: hardworking, secure, efficient,

trustworthy, careful -Intelligent: technical, corporate, serious - Successful: leader, confident, influential • Sophistication (Lexus, Mercedes, Revlon) -Upper Class: glamorous, good-looking,

pretentious, sophisticated -Charming: feminine, smooth, sexy, gentle • Ruggedness (Levi’s, Marlboro, Nike) -Outdoorsy: masculine, Western, active, athletic -Tough: rugged, strong, no-nonsense.

How a Brand Personality is created

Brand Personality Drivers

________________________________________________________________________

PRODUCT-RELATED NON-PRODUCT RELATED CHARACTERISTICS CHARACTERISTICS

Product category (Bank) User imagery (Levi’s 501)

Package (Gateway computers) Sponsorships (Swatch)

Price (Tiffany) Symbol (Marlboro Country)

Attributes (Coors Light) Age (Kodak) Ad style (Obsession) Country of origin (Audi) Company image (The Body-

Shop)

CEO (Bill Gates of Microsoft) Celebrity endorsers (Lux) .

Brand Personality Creates Brand Equity

BRAND PERSONALITYHOW IT CREATES BRAND EQUITY

Self-Expression Model

RelationshipBasis Model

Functional BenefitRepresentation Model

Brand Personality: Self expression model

1)Actual self, ideal self, social self, ideal social selfBrand helps to express a personality therefore,

- feelings engendered by brand personality - Brand as a “badge” - Brand becomes part of self (extended self)3)Brand personality & self – expression needs

must fit.

Brand Personality: Relationship Basis model

1)Brand a friend – aspirational or trusted.

2)What if the brand spoke to you – snobbish/upscale, performance brands talking down, Power brands flexing their muscles; intimidated brands showing their inferiority.

3)Brand as a active relationship partner i.e. brand behavior affects the brand customer relationship. eg. A relationship of dependency would be damaged by an out of stock condition.

Brand Personality: The functional benefit representation model

• The brand personality can also play a more indirect role by being a vehicle for representing & cueing functional benefits & brand attributes. Eg mercedes sophistication=cue

Brand Behavior and Brand Personality

BRAND BEHAVIOR PERSONALITY TRAITS

Frequent changes in position, Flighty, schizophrenic

product forms, symbols,

advertising, etc.

Frequent deals and coupons Cheap, uncultured

Advertises extensively Outgoing, popular

Strong customer service, easy-to-use Approachable

package, etc.

Continuity of characters, packaging Familiar, comfortable

High price, exclusive distribution, Snobbish, sophisticated

advertises in upscale magazines

Friendly advertising, endorsers Friendly

Association with cultural events, PBS Culturally aware.

Brand Personality V/s User imagery

• User imagery is defined as set of human characteristics associated with typical user of brand.

- In most cases, brands is targeting a specific user profile & that well developed user profile is primary driver of brand personality

- For many brands, however, a significant difference between brand & user personality can be important to brand strategy.

e.g. Levis brand personality is driven largely by firm’s heritage of providing clothes for miners & by brand attribute (tough, durable, simple) & use contexts (Western/cowboys). In contrast Levi’s 501 user imagery driven by advertising – tends to be urban, hip, contemporary, both male & female.

• User imagery can be driven by actual users or by promoting idealized or stylized users in advertising or other marketing efforts.

Kapferer Brand Identity prism

EXTERNALISATION

Physique

(Key product & brand attributes)

Personality

(traits, lifestyle)

Relationship

(relationship of love, friendship, respect, awe)

Culture(Core values)

Reflection

(of the user profile’s ideal concept)

Self –image

(Belonging to a club)

PICTURE OF RECIPIENT

I

N

T

E

R

N

A

L

I

S

A

T

I

O

N

The identity prism 1 Physique – brand attributes, benefits, physical facet

(how does it look)2 Personality – Character, What kind of person if it were

human3 Culture – means set of values feeding the brand’s

inspiration (corporate; brand culture) 4 Relationship – how brand wishes to relate to

consumers 5 Reflection – user profile (demographic &

psychographic) that consumers would like to be seen as a result of purchasing the brand. (Hence it is different from target market).

6 Self – image – While reflection, is the target’s outward mirror, the self – image is the target’s own internal mirror ( I feel, I am --------)

Strategic Brand management process

Strategic Brand Management Process

STEPS Mental maps Competitive frame of reference Points of parity and points of difference Core brand values Brand mantra

Mixing and matching of brand elements Integrating brand marketing activities Leverage of secondary associations

Brand value chain Brand audits Brand tracking Brand equity management system

Brand -product matrix Brand portfolios and hierarchies Brand expansion strategies Brand reinforcement and revitalization

Identify and EstablishBrand Positioning and Values

Plan and ImplementBrand Marketing Programs

Plan and ImplementBrand measurement Programs

Grow and SustainBrand Equity

Building Customer-Based Brand Equity BRAND-BUILDING TOOLS AND OBJECTIVES

Choosing Brand Elements

Brand name

Logo

Symbol

Character

Packaging

Slogan

Memorability

Meaningfulness

Likability

Transferability

Adaptability

Protectability

Developing Marketing Programs Tangible and intangible benefits

Value perceptions

Integrate “push and pull”

Mix and match options

Leverage of Secondary Associations

Company

Country of origin

Channel of distribution

Other brands

Endorsor

Event

Awareness

Meaningfulness

Transferability

Product

Price

Distribution channels

Communications

Contd … CONSUMER KNOWLEDGE EFFECTS

Brand Awareness

Depth Recall

Recognition

Breadth Purchase

Consumption

Brand Associations

Strong Relevance

Consistency

Favorable Desirable

Deliverable

UniquePoints-of-parity

Points-of-difference

BRANDING BENEFITS

Possible Outcomes

Greater loyalty. Less vulnerability to competitive

marketing action and crises.

Larger margins.

More elastic response to price

decreases.

More inelastic response to price

increases.

Greater trade cooperation and

support.

Increased marketing communication

efficiency and effectiveness.

Possible licensing opportunities.

More favorable brand extension

evaluations.

Measuring Customer-Based Brand Equity

1. Brand Audit A. Brand inventory B. Brand exploratory

2. Brand Value Chain A. Brand equity sources B. Brand equity outcomes

3. Brand Equity Management System A. Brand equity charter B. Brand equity report C. Brand equity responsibilities

Managing Customer-Based Brand Equity

1. Define Brand Hierarchy A. Principle of simplicity Employ as few levels as possible.

B. Principle of relevance Create abstract associations relevant to as many products as possible .

C. Principle of differentiation Differentiate individual products and brands.

D. Principle of prominence Adjust prominence to affect perceptions of product distance.

E. Principle of commodity Link common products through shared brand elements .

2. Define Brand-Product Matrix A. Brand extensions Establish new equity and enhance existing equity

B. Brand portfolio Maximize coverage and minimize overlap

Managing Customer-Based Brand Equity Contd of Slide

3. Enhance Brand Equity over Time A. Brand reinforcement Innovation in product design, manufacturing and merchandising.

Relevance in user and usage imagery.

B. Brand revitalization “Back to basics” strategy. “Reinvention” strategy.

4. Establish Brand Equity over Market Segments A. Identify differences in How they purchase and use products . consumer behavior What they know and feel about different brands. .

B. Adjust branding program Choice of brand elements. Nature of supporting marketing program. Leverage of secondary associations.

The extension of brand management

Aspirational

fulfillment

Experiential

Enhancement

Functionalsatisfaction

Depth

of

brand

- Image advertising- Co-branding - Sponsorship

- Fanzines- Web sites - Virtual communities - Ethical growth

- Intercommunity events (brand + clients)

- Advertising - In-store animations - Built-in experiential product concepts - Store tainment - Street marketing

- Collector’s or systematic additions tied to an event (Barbie, Lego etc.)

- One-to-one- Recognition and service- Co – creation

- Product quality - Product advantage - Trial promotion

- Post-purchase promotions - Loyalty programmes (cards)

Time perspective of the relationship

Short - term transaction Re-purchase Long-term reciprocal

commitment

Brand Building

Aaker’s Ten Guidelines for Building Strong Brands 1) Brand identity – brand as product, organization, person, symbol.2) Value proposition – functional, emotional & symbolic3) Brand positioning – is the identity that is actively communicated 4) Execution 5) Consistency over-time6) Brand system – Brands in the portfolio should be consistent &

synergistic 7) Brand leverage – for line extensions & brand extensions8) Tracking brand equity 9) Brand responsibility 10) Invest in brands – even when financial goals are not met.

Building a strong brand: The 4 steps of brand buildingBrand laddering

1) Who are you (brand identity)

2) What are you (brand meaning)

3) What do I think/feel about you (brand response)

4) What kind of association/connection would I like to have with you (Brand relationships).

Brand Resonance Pyramid

Brand Building Blocks

4. Relationships What about you and me ?

3. Response What do I think/feel about you ?

2. Meaning What are you?

1. Identity Who are you?

Resonance

Judgments Feelings

Performance Imagery

Salience

Subdimensions of Brand –building Blocks

LoyaltyAttachmentCommunity

Engagement

QualityCredibility

ConsiderationSuperiority

WarmthFun

ExcitementSecurity

Social ApprovalSelf-respect

Primary Characteristics and secondary Features .

Product reliability. durability, and serviceability

Service effectiveness,efficiency, and empathy .

Style and Design. Price .

User Profiles. Purchase and usage situations. Personality and values. History, heritage,and experiences .

Brand Awareness – Recognition & Recall Category Identification

Needs Satisfied

Resona-nce

Judgments Feelings

Performance Imagery

Salience

Brand Salience

• A highly salient brand is one that has both depth & breadth of brand awareness.

• Depth is likelihood that brand element will come to mind & ease with which it does so.

• Breadth of brand awareness concerns range of purchase & usage situations in which brand elements come to mind.

Brand performance

Attributes & benefits

1) Primary ingredients & supplementary features

2) Product reliability, durability, serviceability

3) Service effectiveness, efficiency, empathy

4) Style & design

5) Price

Brand image

1) User profile

2) Purchase & usage situations

3) Personality & values

4) History, heritage & experience

Brand judgements• Brand judgements are opinions &

evaluations:1) Brand quality 2) Brand credibility – considers broader

issues related to company associated with brand. Brand credibility is viewed on 3 dimensions

a) Is brand competent, innovative, market leader (brand expertise)

b) Dependable & keeping customer interests in mind (brand trustworthiness)

c) Fun, interesting & worth spending time with (brand likeability)

3) Brand consideration – how personally relevant consumers find the brand.

4) Brand superiority

Brand feelings

• Brand feelings are customers’ emotional responses & reactions

1) Immediate & experiential – warmth, fun, excitement

2) Enduring & private – security, social approval, self-respect.

Brand resonance

• Refers to nature of relationships & extent to which customers feel in sync with brand.

• Dimensions

1)Behavioural loyalty

2)Attitudinal attachment

3)Sense of community

4)Active engagement

Customer-Based Brand Equity Pyramid

INTENSE, ACTIVELOYALTY

POSITIVE,ACCESSIBLEREACTIONS

POINTS-OF-PARITY ANDPOINTS-OF-

DIFFERENCE

DEEP, BROADBRAND

AWARENESS

Consumer Brand Resonance

Consumer Judgements

Consumer Feelings

Brand Performance

Brand Imagery

Brand Salience

Brand positioning

Implementation of Brand Identity-BRAND POSITIONING

• Brand Positioning is the part of brand identity & value proposition that brand manager decides to actively communicate to target audience & that demonstrates an advantage over competing brands .

Brand Planning Model

Extended

Brand as Product 1. Product scope 2. Product attributes3. Quality/ value 4. Uses5. Users 6. Country of Origin

Brand as Organization7. Organization attributes (e.g., Innovation, consumer concern, trustworthiness) 8. Local vs. global

Brand as Person 9. Personality (e.g., genuine, energetic, rugged)10.Brand- customer relationships (e.g., friend, adviser)

Brand as Symbol 11. Visual imagery and metaphors 12. Brand heritage

STRATEGIC BRAND ANALYSISCustomer Analysis Competitor Analysis Self-Analysis Trends Brand image/identity Existing brand imageMotivation Strengths, strategies Brand heritageUnmet needs Vulnerabilities Strengths/capabilitiesSegmentation Organization values

BRAND IDENTITY SYSTEM BRAND IDENTITY

Core

Brand Planning Model Contd. Of slide

VALUE PROPOSITIONFunctional Emotional Self-expressive benefits benefits benefits

CREDIBILITYSupport other brands

BRAND – CUSTOMER RELATIONSHIPS

BRAND IDENTITY IMPLEMENTATION SYSTEMBRAND POSITIONING

Subset of the brand identity and To be actively communicated.value proposition. Providing competitive At a target audience. advantage.

EXECUTIONGenerate alternatives Symbols and metaphors Testing

TRACKING

Positioning a brand

What/Why? For whom?

When? Against whom?

Brand Positioning

Subset of Identity/Value of Proposition Core Identity Points of LeverageKey benefits

Target Audience Primary Secondary

BRANDPOSITIONING

Actively CommunicateAugment the Image Reinforce the ImageDiffuse the Image

Create Advantage Points of Superiority Points of Parity

Identifying & Establishing brand positioning

• Brand positioning is act of designing the company’s offer & image so that it occupies, distinct & valued place in target customers’ minds.

• Requires determining 1) Frame of reference a) Target market b) Main competitors 2) Points of parity of brand associations – 2 types - category & competitors. 3) Points of difference in brand associations • It is important to establish POPs before PODs• POPs-3 ways to convey brand’s category membership is to communicate

category benefits, comparing to exemplars(well known brands in a category), & relying on product descriptors.

• PODs should have desirability criteria of relevance, distinctiveness& believability & deliverability criteria of feasibility, communicability & sustainability.

• Challenge of positioning is convincing target market about negatively correlated attributes & benefits e.g. taste v/s low calories.

Points of Parity & Points of Difference

Points of Difference – Strong, favorable, unique associations. Thus with POD, brand must demonstrate clear superiorityPoints of Parity – are of 2 types – Category & Competitivea) Category POP are associations consumers view

as essential to be a legitimate & credible offering within a certain product or service category. Thus, they are necessary but not sufficient

condition for brand choice. b) Competitive POP are associations designed to negate competitors’ POD.

Points of Parity & Points of Difference Contd of Slide ….

To achieve POP on a particular attribute or benefit, a sufficient number of consumers must believe that the brand is good enough on that dimension. There is a zone or range of tolerance or acceptance with points of parity.

In fact establishing category membership is very important or customers can get confused.

3 Main ways to convey a brand’s category membership

1) Announcing category benefits

2) Comparing to exemplars

3) Relying on the product descriptor.

How to evaluate and choose a brand positioning

Are the product’s current looks and ingredients compatible with this positioning?

How strong is the assumed consumer motivation behind this positioning?

What size of market is involved by such a positioning? Is this positioning credible? Does it capitalize on a competitor’s actual or latent weakness? What financial means are required by such a positioning? Is this positioning specific and distinctive? Is this a sustainable positioning which cannot be imitated by

competitors? Does this positioning leave any possibility for an alternative solution

in case of failure? Does this positioning justify a price premium?

MBE-David Aaker

Selecting &Creating brand

Positioning Decision

Self Analysis Be Consistent with: Brand attributesBrand Perceptions

Competitors’ Associations Differentiate

Target Market Provide Reason-to-Buy Add Value

ASSOCIATIONS

Signaling the positioning

Signaling the positioning

Identifying & managing signals 1. Brand elements2. Product3. Price 4. Place-Direct v/s indirect channels, brand image/store image interplay,

Push v/s pull strategies,segmentation of retail outlets, co-operative advertising.

5. Advertising 6. Using promotions to strengthen associations eg. Happy meal or Nescafe

with Shaker 7. Using publicity 8. People9. Pace(Process)10. Physical evidence11. Involving the customer 12. Events and causes13. Endorsers

Building Brand equity Brand equity drivers

1) The initial choice of brand elements – brand names, URLs, logos, symbols, characters, spokespeople, slogans, jingles, packages, and signage.

2) The product and service and all accompanying marketing mix activities and supporting marketing programs.

3) Other associations indirectly transferred to the brand by linking it to some other entity. (e.g., a person, place, or thing).

Brand elements

• Brand name

• Symbol

• Slogan

Criteria for choosing brand elements that make brand identity.

1) Memorability – easily recognized and recalled.For brand name, also easy to pronounce.

2) Meaningfulness - descriptive & persuasive 3) Likeability – fun, rich visual & verbal

imagery, aesthetically appealing4) Transferability – across product

categories, geographic boundaries & cultures

5) Adaptability – flexible, updatable 6) Protectability – legally and competitively

Choosing brand elements Contd of slide ….

Developing brand elements

Name-research procedures include association tests (What images come to mind?), learning tests (How easily is the name pronounced?), memory tests (How well is the name remembered?), and preference tests (Which names are preferred?).

Criteria for Brand Name Selection A proposed name should: 1. Be easy to learn and remember – it is helpful if it is unusual,

interesting, meaningful, emotional, pronounceable, spellable, and/or if it involves a visual image.

2. Suggest the product class so that name recall will be high while still being compatible with potential future uses of the name.

3. Support a symbol or slogan. 4. Suggest desired associations without being boring or trivial. 5. Not suggest undesired associations – it should be authentic,

credible, and comfortable and not raise false expectations. 6. Be distinctive – it should not be confused with competitors’ names.7. Be available and protectable legally.

I. Descriptive Describes function literally, generally unregisterable Examples: Singapore Airlines, Global Crossing

II. Suggestive Suggestive of a benefit or function Examples: march FIRST, Agilent Technologies

III. Compounds Combination of two or more, often unexpected, words Examples: redhat

IV. Classical Based on Latin, Greek, or Sanskrit. Example: Meritor

V. Arbitrary Real words with no obvious tie-in to company Example: Apple

VI. Fanciful Coined words with no obvious meaning Example: avanade

Landor’s Brand Name Taxonomy

Note on brand names

• Non – meaningful names are more transferable • High – imagery brand names (Frog, Ocean) are

more memorable than low-imagery names (Truth, History)

• Choosing distinctive names is as important as choosing simple, easy to pronounce, familiar, meaningful, easy to remember

• Brand name should be chosen to communicate performance related & abstract associations.

Symbols

When products & services are difficult to differentiate, a symbol can be central element of brand equity.

The Role of the Symbol

AwarenessAssociations

SYMBOL

Liking

Perceived Quality Loyalty

Symbols can be nearly anything, including:

• Geometric shapes – Mercedes • Things – Kingfisher • Packages – Calcium Sandoz • Logos – Apple Computer’s apple with a

bite out of it • People – the Maytag repairman • Scenes – Marlboro country • Cartoon characters – Ronald

Mcdonald,Pillsbury

Slogans

1)Slogan can be tailored to positioning strategy

2)Can generate equity of its own

3)Can reinforce name or symbol

Slogan is most effective when it is specific, to the point, memorable(interesting,relevant, funny, catchy etc) & linked to the brand.

Styling of branding elements has 4

dimensions: a) Complexity(minimalism v/s

ornamentalism

b) Representation (realism v/s abstraction)

c) Perceived movement (dynamic v/s static)

d) Potency (loud/strong v/s soft/weak).

Brand Activation

From Strategy to activation

Brand concept Target market

Values Insight

Brand activation at retail

Brand prototype

Brand activation at contact

Brand activation through media

Brand lines

Brand Lines

Sub –brands

Product insight Sub - brands Product insight

B. Designing Holistic Marketing Activities

A brand contact can be defined as any information-bearing experience a customer or prospect has with the brand, the product category, or the market that relates to the marketer’s product or service. Any of these experiences can be positive or negative. The company must put effort into managing these experiences.

Designing Marketing Programme to build Brand equity

1)Experiential marketing – sense, feel, think, act, relate customers want to be entertained, stimulated, emotionally affected & creatively challenged.

• The idea is not to sell something but to deliver a desirable customer experience

2)One to one marketing – focus on individual consumer, respond to consumer dialogue via interactivity & customize products

3)Permission marketing – through some kind of incentive

4)Relationship marketing – loyalty programs

B. Designing Holistic Marketing Activities Contd of Slide….

1. Personalization.

2. Integration.

3. Internalization – Internal branding is activities and processes that help to inform and inspire employees. The brand promise will not be delivered unless everyone in the company lives the brand.

Integrating Communication options

• Means choosing a variety of different communications options that share common meaning & context but also offer different complementary advantages.

Marketing Communications options

1) Media advertising 2) Direct response advertising 3) Online advertising 4) Place advertising- OOH5) Point of Purchase 6) Trade promotions 7) Consumer promotions 8) Event marketing & sponsorship 9) Publicity & PR 10) Personal selling.

IMC program should satisfy 6 criteria:

Proportion of audience reached by each communication option

1) Coverage – (Proportion of audience reached by each communication option. Main effects + intersection effects of a communication option)

2) Contribution – relates to the inherent ability of a marketing communication option to create desired response.

3) Commonality – Consistent & cohesive meaning of all communication options

4) Complementarity – different associations & linkage emphasized by different communication options e.g. advertising (awareness & attitudes) & sales promotion (action).

5) Versatality – effectiveness for different customer groups

Integrating Marketing Communications to Build Brand equity

Information processing model of communications

Steps Pitfalls

1) Exposure media plan failure

2) Attention Boring creatives

3) Comprehension Lack of product category knowledge

4) Yielding Lack of positive attitude due to irrelevant or unconvincing product claims.

5) Intention Lack of immediate perceived need

6) Behaviour Failure to remember anything from ad when confronted with available brands in store.

Ideal campaign

Steps Ideal ad campaign

Exposure Right consumer should be exposed to right message at right place right time

Attention Creative strategy should make consumer notice ad

Comprehension Ad should reflect consumer’s level of understanding of product & brand

Yeilding Ad correctly positions on POP & POD

Intention Ad motivates consumers to consider purchase

Behaviour Ad creates strong brand associations

Designing an ad campaign

• Two dimensions

1) Message strategy or positioning of an ad (What ad says of the brand)

2) Creative strategy (how ad expresses the brand claims.)

Define Positioning to Establish Brand Equity Competitive frame of reference Nature of competition Target market Point-of-parity attributes or benefits Necessity Competitive Point-of-difference attributes or benefits Desirable Deliverable

Identify Creative Strategy to Communicate Positioning Concept Informational (benefit elaboration) Problem-solution Demonstration Product comparison Testimonial (celebrity or unknown consumer) Transformational (imagery portrayal) Typical or aspirational usage situation Typical or aspirational user of product Brand personality and values Motivational (“borrowed interest” techniques) Humor Warmth Sex appeal Music Fear Special effects

Factors in Designing Effective Advertising Campaigns

Factors creating weak brand links

1) Competitive clutter 2) Ad content & structure 3) Low consumer involvement • Strategies to strengthen communication

effect 1) Brand signatures 2) Ad retrieval cues3) Media interactions 4) Ads over time.

C)Leveraging Secondary Knowledge to build brand equityInvolves linking brand to following

1) Companies (e.g. through branding strategies)2) Countries or geographic areas (e.g. through identification

of product origin) 3) Channels of distribution (e.g. through channel strategy) 4) Other brands (e.g. through co-branding, ingredient

branding)5) Characters (e.g. through licensing) 6) Spokespersons (e.g. through endorsement)7) Events (e.g. through sponsorship) 8) Other third-party sources (e.g. through awards or

reviews).

Secondary Sources of Brand Knowledge

Ingredients Company

Extensions Alliances

Other Brands

Employees

People

Endorsers

BRAND

Things

Causes Events

Third – party endorsements

Country of origin

Places

Channels

Strategic Brand Analysis

Strategic Brand Analysis • The objective of strategic brand analysis is to

precipitate & improve strategic decisions about the brand such as brand identity specification, product classes with which it should be associated, role within organization’s brand system & investment level that should support it. Another objective is to identify key strategic uncertainties that will affect brand strategy. It involves

a)Customer analysis b)Competitive analysis c)Self – analysis

Strategic Brand Analysis

STRATEGIC BRAND ANALYSIS

Customer Analysis•Trends •Motivations •Segments •Unmet needs

Competitor Analysis

•Brand Image/position

•Strengths/vulnerabilities

Self-Analysis

•Existing brand image

•Brand heritage

•Strengths/weaknesses

•The brand’s soul

•Links to other brands

Brand system

Brand concept(value proposition)

Brand name and symbols Product or service

Managing brand systems

- Important because of proliferation of brands & products within a single company

- A brand system serves as a launching platform for new products or brands & as a foundation for all brands in the system.

Goals of system is1)Exploit commolaties.2)Reduce brand identity damage due to use of

brand in different contexts & roles 3)Achieve clarity of product offerings 4)Facilitate change & adoption 5)Allocate resources.

Thus brand systems thinking results in questions

1)Is separate brand justifiable?

2)Is there confusion?

3)Is there overlap?

4)Can synergy be created?.

How many brands?

1) Is the brand sufficiently different to merit a new brand name?

2) Will a new name add value?

3) Will an existing brand be placed at risk if it is used on a new product?

a) Will the business support a new brand name?

BRAND HIERARCHY

• A brand hierarchy is a means of summarizing the branding strategy by displaying the number & nature of common & distinctive brand elements across firms products.

1) Corporate or company brand 2) Family or Range brand or umbrella (branded

house) e.g. Maggie. 3) Individual brand or Product brand. (house of

brands)4) Modifier – designating item or model 5) Hybrid branding – Co + Indiv, Indiv + Co,

Brand hierarchy may not be symmetric.

Brand hierarchies

CORPORATE BRAND General Motors Nestle HP

RANGE BRAND Chevrolet Carnation HP Jet Brand

PRODUCT LINE BRAND Chevrolet Carnation LaserJet IV SE Lumina Instant Breakfast

SUBBRAND Chevrolet Lumina Carnation LaserJet IV SE Sports Coupe Instant Breakfast

Swiss Chocolate

BRANDED FEATURE/ Mr. Goodwrench NutraSweet Resolution COMPONENT/SERVICE Service System Enhancement

Guidelines for brand hierarchy decisions

1) Simplicity

2) Relevance

3) Differentiation

4) Prominence

5) Commonality.

Devising a Branding Strategy

4 General Strategies:

1) Individual names or house of brands

2) Blanket family names or branded house

3) Separate family names

4) Corporate name + individual product name.

Devising a Branding Strategy Contd of Slide ….

- Brand extension – line extensions & category extensions

- Parent brand & sub brand- Brand line consists of all products – original

as well as line and category extensions – sold under a particular brand.

- Brand mix (or brand assortment) is the set of all brand lines that a particular seller makes available to buyers.

- Licensed brands, co-branding, ingredient branding.

Brand architecture: handling a large product portfolio

Branding strategies 1) Product Brand strategy – e.g. P & G2) Line brand strategy – e.g. Surf 3) Range brand strategy e.g. Maggie 4) Umbrella brand strategy e.g. Palmolive Soap,

Shampoos, Tata. 5) Source brand strategy – Nestle Kit Kat6) Endorsing brand strategy – Tractor from house of Asian

Paints • Decision stems from recognition of the brand’s role as

expected by customer

Brand Roles

Endorser StrategicBrands

Driver

SilverBullets

BRANDROLES

Subbrands

Branded Benefits•Features •Components•Service programs

Strategic Brands

• Strategic imperative is to allocate resources by classifying brands into divestment candidates, milkers, & strategic brands.

Brand Roles

• Driver role is that part of brand name that drives the purchase decision. Eg. Sensor Razor technology of Gillette; or in Pillsbury Microwave Popcorn, Pillsbury is the driver brand & Microwave Popcorn is only a generic description.

• Endorser – provides support & credibility to driver brand’s claims usually the corporate brand eg. Gillette.

Driver & endorser brands

1) Corporate dominant (driver) brand name 2) Brand dominant name 3) Endorsed brand – When driver brand is

endorsed by corporate/division/ subsidiary.4) Dual brands – When two names are

given equal prominence eg. Cadbury’s Dairy Milk Chocolate.

Subbrand Roles

• A sub brand is a brand that distinguishes a part of the product line within the brand system. A sub brand can be driver (General Mills Pop Secret) or a descriptor brand (Pillsbury Microwave Popcorn).

Sub brand Roles

1) Describes offers Descriptor role communicates the product class,

feature, target segment or function of brand eg. Oral B. Anti-Plaque rinse,Microsoft Office, Prefix & Suffixes eg.McChicken

2) Structure & Clarify options Eg. Jet Airways, Jet Lite

3) Augment/ modify the identity by changing association Surf excel.

4) Exploit market opportunities – Maggie Wheat Atta Noodles

5) Support Vertical & horizontal extensions

The Role of the Subbrand as Modifier

COMPOSITE TERM MODIFIER MODIFIED CONCEPT

Apartment dog Apartment Dog

Pet rock Pet Rock

Slim-Fast cake mix by Godiva Godiva Slim-Fast cake mix

Godiva cake mix by Slim Fast Slim Fast Godiva cake mix

Healthy Choice from Kellogg’s Kellogg’s Healthy Choice

Silver Bullets

• A silver bullet is a sub brand or branded benefit that is employed as a vehicle for changing or supporting the brand image of a parent brand.

• Videocon Bazooka,LG Golden eye

Branding strategy

• Reflects the number & nature of common & distinctive brand elements applied to different products sold by firm. Thus, it involves deciding which brand names, logos, symbols etc should be applied to which products. Branding strategy is characterized by:

A) Breadth (i.e. in terms of brand-product relationships & brand extension strategy) (B)Depth (i.e. in terms of product –brand relationships &

brand portfolio)- i.e. should firm have multiple brands in same product

category? • General principle in designing brand portfolio is to

maximize market but to minimize brand overlap.

Designing & Implementing branding strategies • The brand – product matrix is a useful tool to characterize the product &

branding strategy of firm. It is a graphical representation of all brands & products sold by the firm.

Product

A

B

C

D

1 2 3 4

Brand

Designing & Implementing branding strategies Contd of Slide …

- I row of the matrix = a brand line = original brand line + brand extensions

- 1column of matrix = Brand portfolio = set of all brands & brand lines that a particular firm offers in particular category

- A product line is group of products within a product category that are closely related, therefore they function similar or are sold to same customer group or are marketed through same type of outlets or priced in a given range.

• A product line may be composed of different brands or single family brand or individual brand that has been line extended

- A product mix (or product assortment) is symbolized by all columns. Length,Breadth/width, depth of product mix

- A brand mix (or brand assortment) is set of all brand lines that a particular seller makes available to buyers.

Flankers

• Protective flankers or fighter brands are typically used to create stronger points of parity with competitors’ brands so that more important (& more profitable) flagship brands can retain their desired positioning e.g. discount brands as flanker brands.

Roles of Brands in portfolio

Possible Special Roles of Brands in the Brand Portfolio

1. To attract a particular market segment not currently being covered by other brands of the firm.

2. To serve as a flanker and protect flagship brands.3. To serve as a cash cow and be milked for profits. 4. To serve as a low-end entry-level product to attract new customers

to the brand franchise. 5. To serve as a high-end prestige product to add prestige and

credibility to the entire brand portfolio.6. To increase shelf presence and retailer dependence in the store.7. To attract consumers seeking variety who may otherwise have

switched to another brand. 8. To increase internal competition within the firm.9. To yield economies of scale in advertising, sales, merchandising,

and physical distribution.

Corporate Image Dimensions

• A company brand may evoke image of:

1) Performance or imagery attribute or benefit associations, product attribute, type of user, usage situation, overall judgement

2) People & relationships

3) Values & Programs – e.g. socially responsible, environmentally concerned

4) Corporate credibility – expertise, trustworthiness, likeability.

Leveraging the brand

Leveraging the Brand

LEVERAGINGTHE BRAND

Line Extensions(Stretchingthe BrandVertically)in existing

Product Class

BrandExtensionsin different

Product Classes

Co-Branding

StretchingDown

StretchingUp

Ad HocBrand

Extensions

Creating aRangeBrand

Line

Extensions (variants)

In existing

Product Class

Introducing & NamingNew Products & brand extensions

Same Name New Name

Line extensionMultiplebranding

Brandextension

Newbranding

Same product

line

New product

line

Line Extensions

Helps to:

1) Expand user base

2) Provide variety

3) Energize a brand

4) Manage true innovation

5) Block or inhibit competitors .

Line stretching Downwards

• Driving forces are increased sensitivity to price, retail low priced brands, technological change.

• Moving down is easy, protecting brand is hard • Using sub brands could be the strategy but there is risk of

cannibalization • Will the identity stretch? – BMW 300, 500,700 series reflect different

sizes & price points. However still have same identity of ultimate driving machine.

• But Mercedes identity being driven by prestige,exclusivity had a problem of potential inconsistency.

• Creating a different personality – Parent Child relationship e.g. John Deere Jr.

• Subtle association e.g. Tractor from house of Asian Paints.

Line stretching Upwards • Will the identity stretch • Upscale entry as vehicle for downstream

enhancement i.e. enhancing core brand identity through new associations.

• e.g. Lifebuoy to Lifebuoy Gold.

Brand ExtensionsThe Good, bad &

ugly

EFFECTS OFEXTENDING

A BRAND TO A NEW PRODUCT

The Good The Brand NameAids the Extension

More Good The Extension

Enhances the Brand Name

The BadThe Brand Name Fails to Help the extension

The Ugly The Brand Name

Is Damaged

More UglyNew Brand name is foregone

Co Branding

1) Ingredient branding

2) Composite brand.

Range Brands

BRAND EXTENSION RANGE BRANDS

DECISION FOCUS Incremental Strategic

DECISION SCOPE Product class Product class groupings

TIME FRAME Short term Long term

Advantages of Brand Extension • Facilitate New Product Acceptance • Improve brand image • Reduce risk perceived by customers• Increase the probability of gaining distribution and trial• Increase efficiency of promotional expenditures• Reduce costs of introductory and follow-up marketing programs • Avoid cost of developing a new brand • Allow for packaging and labeling efficiencies • Permit consumer variety–seeking

• Provide Feedback Benefits to the Parent Brand and Company • Clarify brand meaning • Enhance the parent brand image • Bring new customers into brand franchise and increase market

coverage • Revitalize the brand • Permit subsequent extensions

Disadvantages of Brand Extension • Can confuse or frustrate consumers • Can encounter retailer resistance • Can fail and hurt parent brand image • Can succeed but cannibalize sales of parent

brand • Can succeed but diminish identification with any

one category• Can succeed but hurt the image of parent brand • Can dilute brand meaning • Can cause the company to forgo the chance to

develop a new brand.

Will brand extension succeed?• Four assumptions must hold true:1) Consumers have some awareness of & positive

associations about parent brand 2) At least some of these positive associations will be

evoked by the brand extension. 3) Negative associations are not transferred from parent

brand 4) Negative associations are not created by brand extension• Ultimate success of extension will depend on its ability to

both achieve some of its own brand equity in new category as well as contribute to equity of parent brand.

• Brand equity is created when brand has high level of awareness & strong, favourable & unique associations. Brand extensions must achieve desire POP and POD. e.g. J&J aspirin for babies failed though J&J is synonymous with babies. Though safety & gentleness of aspirin was important, so was getting fever down quickly J&J failed on POP.

Steps in Successfully Introducing Brand Extensions

1. Define actual and desired consumer knowledge about the brand (e.g., create mental map and identify key sources of equity).

2. Identify possible extension candidates on basis of parent brand associations and overall similarity or fit of extension to the parent brand.

3. Evaluate the potential of the extension candidate to create equity according to the three-factor model:

• Salience(strength) of parent brand associations • Favorability of inferred extension associations • Uniqueness of inferred extension associations 4. Evaluate extension candidate feedback effects according to the four-

factor model:• How compelling the extension evidence is • How consistent the extension evidence is • How strong the extension evidence is 5. Consider possible competitive advantages as perceived by consumers

and possible reactions initiated by consumers.6. Design marketing campaign to launch extension.7. Evaluate extension success and effects on parent brand equity.

Brand extension guidelines

1) Successful brand extensions occur when there is perception of fit between parent brand & extension product

2) Basis of fit: product related attributes & benefits as well as non – product related attributes & benefits related to common usage situations or use types

3) High quality brands stretch farther than average quality brands

4) A brand seen as prototypical of product category can be difficult to extend

5) Concrete attribute associations more difficult to extend than abstract benefit associations.

Brand Extension fit

Two bases of fit 1) Transferability of skills & assets – e.g.

Toothpaste mouth wash2) Complementarity – Moser Baer DVD

player & DVDS. Ask customers: a) What product classes brand name can be

extended to.b) Note that brand should not be extended to

trivial product class having little perceived differentiation

When does brand extension make sense?

1) Strong brand associations provide POD 2) When brand name provides only name

recognition & perceived quality umbrella, often extension will be vulnerable to competition.

3) Category will not support resources needed to establish new name or new name will not provide useful set of associations.

Brand extension also has an impact on the consumer:

- in the trial rate, including a higher rate (123 vs. 100);

- in the conversion rate (17 per cent vs 13 per cent);

- in the loyalty rate ( index of 161 vs 100 for new brands).

Ayer model: how a family name impacts the sales of a new product

Product positioning Repetition Copy quality Consumer promotions Degree of involvement

Awareness of thenew product(advertising recall)

Level of distribution Packaging Family name vs new name Promotions, bargains Satisfaction after trying sample Category penetration

% trying within 13 weeks after launch

Relative price Satisfaction after product use Frequency of category purchases

Repurchase rate

Logic for brand extensions

Success rate of two alternative branding policies

Market development

Growth Maturity

Launches of new brands 57% 43%

Launches of brand extensions 46% 68%

Attitudes of consumers to brand extensions

Variables (Explaining25%) 1) Perceived quality of brand does not guarantee positive

opinions of extension 2) Feeling of transferability influences 3) Complementary does not e.g. Sources of pasta brand

extending to tomato sauce is not assumed 4) Product substitutability does not guarantee e.g. Specs vs.

contacts 5) High perceived quality x transferability; • High perceived quality x complementarity; • High perceived quality x substitutability has positive

influence 6) Perceived difficulty of extension is linked positively only in

intermediate levels of difficulty. It is negative for extensions which are too easy to manufacture or too difficult.

Attitudes of consumers to brand extensionsVariables (Explaining25%) Contd of slide …

Also 1) If brand is mainly functional, extension is evaluated

according to inherent links of perceived similarity between category of original product & that of extended product.

2) If brand is symbolic, extension is evaluated based on its belongingness to the value system

• An extension is acceptable//liked when it fits with the idea that consumers have of the mother-brand.

• This feeling is based either on high perceived similarity to the most typical product/products of a brand (also called pivot products) or on the coherence between extension & brand contract (also called its concept or identity).

Type of brand and ability to extend

Values

Interest

Know-how

Formula

Product

Degree of product dissimilarity

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

Perimeters of brand extension

No-go area

Threats of brand’s capital asset

Extension zone

Latent potential

Outer core

Spontaneous associations

Inner core

Line

extension

A few classic errors

1)Having a restricted vision of the brand – take them to be nothing more than descriptive names. Hence brand extension is limited to few variations of main product.

2) Keeping brand locked up – not leveraging on it 3) Allowing past to determine future – Cadbury would not have

succeeded if it used this theory. 4) Harmful extensions e.g. lower quality segments 5) Opportunism & identity incoherence –Navratna Lal Tel, Extra

Cool & Light all talk of Cool -Cool. 6)Protypical brands – e.g. Coca Cola, Levis, Lacoste should not try to

venture out. 7) The trap of mundane products.

Research Insights on Brand Extensions • Successful brand extensions occur when the parent brand is seen

as having favorable associations and there is a perception of fit between the parent brand and the extension product.

• There are many bases of fit: product-related attributes and benefits, as well as non-product-related attributes and benefits related to common usage situation or user types.

• Depending on consumer knowledge of the categories, perceptions of fit may be based on technical or manufacturing commonalties or more surface considerations such as necessary or situational complementarity.

• High-quality brands stretch farther than average-quality brands, although both types of brands have boundaries.

• A brand that is seen as prototypical of a product category can be difficult to extend outside the category.

• Concrete attribute associations tend to be more difficult to extend than abstract benefit associations.

Research Insights on Brand Extensions Contd of slide ….

• Consumers may transfer associations that are positive in the original product class but become negative in the extension context.

• Consumers may infer negative associations about an extension, perhaps even based on other inferred positive associations.

• It can be difficult to extend into a product class that is seen as easy to make.

• A successful extension can not only contribute to the parent brand image but also enable a brand to be extended even farther.

• An unsuccessful extension hurts the parent brand only when there is a strong basis of fit between the two.

• An unsuccessful extension does not prevent a firm from “back-tracking” and introducing a more similar extension.

• Vertical extensions can be difficult and often require sub- branding strategies.

• The most effective advertising strategy for an extension emphasizes information about the extension (rather than reminders about the parent brand).

Managing Brands over time

Managing Brands Over Time--Why Consistency is better?

1)Ownership of position

2)Ownership of identity symbol

3)Cost efficiencies

Resisting Pressures to Change Identities, Positions, and Executions

PRESSURES TO CHANGE IDENTITIES/EXECUTIONSBrand Manager Mindset Strategic Misconceptions •Problem solver/action orientation. Current identity/execution is ineffective. •High aspirations. A new paradigm requires a new

identity/execution.

•Identity/execution owned A superior identity/execution can be by predecessor. found.

Customers are bored with or tired of

stodgy identity/execution.

PRESSURES RESISTED

CONSISTENT BRAND IDENTITY,POSITIONS AND EXECUTION

BENEFITS OF CONSISTENCYOwn position Own Identity symbols Cost efficiencies

Managing Brand equity

Brand Reinforcement

Reinforcing brand equity requires innovation and relevance throughout the marketing program. Marketers must introduce new products and conduct new marketing activities that truly satisfy their target markets. The brand must always be moving forward – but moving forward in the right direction.

An important consideration in reinforcing brands in the consistency of the marketing support the brand receives, in terms of both amount and kind. Consistency does not mean uniformity and no changes: Many tactical changes may be necessary to maintain the strategic thrust and direction of the brand. Unless there is some change in the marketing environment, however, there is little need to deviate from a successful positioning.

Managing brands over-timeReinforcing brand equity

1) Maintaining Consistency of marketing support 2) Protecting Sources of brand equity unless change in consumers,

competition or company makes current strategic positioning of brand less powerful (e.g. changes that make POP & POD less desirable or deliverable). May require tactical shifts & changes to maintain strategic trust & direction of brand & create same desired knowledge structures in consumer’s minds. e.g. Prices may move up or down, product features added/dropped brand extensions added, withdrawn, different, creative strategies or slogans.

In making product change to a brand, loyal consumers should feel it is a better product not different. But product should not be changed if brand meaning is too iconic.

3) Fortifying V/s leveraging (reducing ad expenses, higher price premiums, brand extensions)

4) Fine-tuning the supporting marketing program- Even brand tactics should be changed when there is evidence that they are not contributing to brand equity.

Search for fountain of youth :

How to Contemporize a brand identity • Problem is acute for heritage brands. Though

considered sincere, they appear stodgy, old-fashioned & tired.

• Strategies are:

1) Evolve an identity through

a) Symbols – eg. Pillsbury doughboy has got livelier

b) Name – Kentucky fried chicken becomes KFC

c) Slogans.

d) New product features (new,Improved)

Search for fountain of youth :How to Contemporize a brand identity

Contd of Slide

2) Augment the identity

a) Product extension

b) Adding an emotional benefit

c) Use of sub brands

d) Adding user imagery.

How to preserve the superior image of brand

1) Upgrade its current level of expectation 2) Integrate new & emerging needs while holding

onto same positioning.3) Constantly confirm one’s superiority by

extending the line.4) Adapting to one’s own customers who

themselves change & became more experienced.

5) Investing in communication.

How to preserve the superior image of brand Cont of Slide …

6) Creating entry barriers – cost of production; mastering technology, quality; domination through image & communication; line/range extensions, opinion leadership; controlling distribution, legality.

7) From brand equity to customer equity through customer dialogue, relationship marketing, segmenting customers.

8) Sustaining proximity with influencers 9) Necessity of dual management

(glocal,revelance to different segments etc)

Updating positioning over time

• Involves two main issues:

1) Laddering – how to deepen meaning of brand from attributes to benefits, consequences to abstract values (personal goals, motivations)

• Reacting to competitive challenges.

Repositoning

Repositioning

• Why Change identities, positions, executions?• Rationale 1)IPE was poorly conceived. 2)IPE is obsolete – Customer needs have changed

eg fried is considered unhealthy.3)IPE appeals to a limited market -Customer

Segment dying 4)IPE is not contemporary5)IPE is undifferentiated from competition

Managing Brand equity Contd of Slide ….

Brand Revitalization

Changes in consumer tastes and preferences, the emergence of new competitors or new technology, or any new development in the marketing environment.

Decisions must then be made as to whether to retain the same positioning or create a new positioning, and, if so, which positioning to adopt. Sometimes the positioning is still appropriate, it’s the actual marketing program that is the source of the problem.

Brand Crises-Swift and sincere

Revitalising brands

• When prominent & admired brands have fallen on hard times a) Are key brand associations still positive & can function as POP &

PODb) Should we retain same positioning or adopt new one.1) Expanding brand awareness. Because, depth is rarely a problem

for fading brands. It is breadth that is problem. Brand is thought of in very narrow ways. E.g. Burnol, Vicks. Strategy is to look at market penetration (increase quantity per usage, frequency of use, new usage opportunities, faster replacement, completely different ways to use brand).

2) Improving brand image – Through improving strength, favourability & uniqueness of brand associations

a) Repositioning the brandb) Changing brand elements c) Changing marketing mix d) Entering new markets

Revitalizing the Brand

BRANDREVITALIZATION

2. Finding New Uses

3. Entering New markets

1. Increasing

Usage

7. Extending the Brand

6. ObsoletingExisting Products

Augmenting the Product/Service

4. Repositioning

the brand

Alternatives to revitalization

1) Milking option(Harvesting)

2) Exit/Divestment/Liquidation.

Milking strategy should be used

When: 1) Industry decline rate not steep. Pockets of

enduring demand exist

2) Price structure stable & profits possible

3) Loyal Customer base

4) Brand provides economies of scale to company.

Adjustments to brand portfolio

1) Migration strategies are designed so that consumers understand how various brands in portfolio can satisfy their needs as they (consumers) or the brands/products change over time e.g. Entry-level brands to higher versions

2) Acquiring new customers Challenge lies in making brand relevant to vastly different cohort groups especially when brand has strong personality or user image associations.

• Strategy could be multiple marketing communications program, brand extensions & sub brands; new distribution outlets.

3) Retiring brands – retrenching a fading brand.

Challenge of growth in mature markets: Segments of Consumers

Typical segments range from hell to paradise with a mix of behavioural and emotional dimensions:

1. Those consumers who dislike the brand, even hate it. It is really not part of their world.

2. Those who are not consumers because they consider the brand is underperforming on a sought attribute.

3. Those who simply are not consumers, without a specific reason (simply the brand has nothing salient to their eyes to induce trial).

4. Those who would like to buy but cannot (no availability, no accessibility, price problem).

Challenge of growth in mature markets: Segments of consumers Contd of slide …

5. Those who buy from time to time,

switching between brands.

6. Those who buy more often.

7. Those buyers who are involved, engaged with the brand.

As soon as the brand is launched everything must be done to create and identify consumers in segments 6 and 7, the heavy buyers and the involved consumers.

Challenge of growth in mature markets

1) Growth through existing customers

- CRM & research

- Building volume per capita by addressing barriers to consumption (e.g.. unhealthy drink)

- Growth through new uses & situations

- Growth through trading up

2) Line extensions – necessity & limits.

Challenge of growth in mature markets Contd of slide …

3) Growth through innovations – Creating desire through innovation of value.

4) Managing fragmented markets through

right amount of segmentation & customization.

5) Growth through cross selling

6) Growth through internalisation.

Paths of brand growth and decline

STATUS

FAMILIARITY ESTEEM

RELEVANCE

DIFFERENCE

LEADERSHIPNICHE BRAND

NEW

EROSION

The 3 facets of brand loyalty

BRAND PREFERENCE (attitudes)

POTENTIALLOYALS

ACTIVECOMMITTED

LOYALS

PSEUDO LOYALS

SINGLE PRODUCTREPEAT PURCHASE

TRIAL OFLINE EXTENSIONS ORBRAND EXTENSIONS

Brand capital and customer capital: matching preferences and purchase behaviour

BRAND CAPITALPerceived superiority

19% 35%

SONY

4% 42%

YES

CUSTOMERCAPITALUsage

YES NO

NO

Brand capital and customer capital: matching preferences and purchase behaviour

Thus sustaining a brand long term means: 1) Nourish the perceived difference 2) Invest in communication 3) Remain within mainstream price 4) Dominate to invest 5) Control the distribution system 6) Create entry barriers 7) Reinforce brand loyalty

Handling name changes & brand transfersTypes of brand transfers

1) Name

2) Visual identity – colour, packaging, logo, symbol, slogans

3) Physical product

4) Audio identity

5) Brand character

6) Consumer benefit or brand positioning.

Managing brands over boundaries

Managing brands over geographic boundaries & market segments

• Rationale of going international

1) Slow growth & increased competition in domestic markets

2) Growth & profit opportunities overseas

3) Desire to reduce costs from economies of scale

4) Need to diversify risk

5) Recognition of global mobility of customers.

Advantages of Global Marketing Programs

• Economies of scale in production and distribution

• Lower marketing costs • Power and scope • Consistency in brand image • Ability to leverage good ideas quickly and

efficiently • Uniformity of marketing practices.

Disadvantages of Global Marketing Programs

• Differences in consumer needs, wants, and usage patterns for products

• Differences in consumer response to marketing mix elements

• Differences in brand and product development and the competitive environment

• Differences in the legal environment • Differences in marketing institutions • Differences in administrative procedures.

Standardization versus customization

1) Standardization in strict sense difficult

2) Standardization & Customization. Blend global objectives with local/regional concerns.

Global Brand Strategy

1) Identify differences in consumer behaviour in each market (for e.g. how consumers purchase, use products & what they know & feel about brands).

2) Adjust the branding program (i.e. through choice of brand elements; nature of

supporting marketing program & leverage of secondary associations). Note that secondary associations e.g. country of origin may have more leverage in new market than in domestic market.

Global Brand Strategy

A Building Global Customer based brand equityMeans 1) To establish breadth & depth of brand awareness 2) Create strong, favorable & unique brand associations 3) Elicit positive, accessible brand responses 4) Forge intense, active brand relationships• This means establishing six core brand – building blocks 1) Brand salience 2) Brand performance 3) Brand imagery 4) Brand judgements 5) Brand feelings 6) Brand resonance

B Global Brand positioning.

The Ten Commandments of Global Branding

1. Understand similarities and differences in the global branding landscape.

2. Don’t take shortcuts in brand building.3. Establish marketing infrastructure.4. Embrace integrated marketing

communications.5. Cultivate brand partnerships.6. Balance standardization and customization. 7. Balance global and local control.8. Establish operable guidelines.9. Implement a global brand equity measurement

system.10. Leverage brand elements.

Making brands go globalHow country of origin impacts globalization tendencies

Subsidiary free Push towards No response

to decide (%) standardization (%) (%)

Germany 4.5 95.5 -

Great Britain 5.3 94.7 -

Japan 0.0 85.7 14.3

Switzerland 20.0 80.0 -

USA 5.7 77.2 17.1

France 24.0 69.0 7.0

Italy 30.0 60.0 10.0

Mean 12.9 81.0 6.1

Which products lead to marketing standardization? Same marketing Same marketing mix Marketing mix mix in Europe within regions adapted per country (%) (%) (%) Luxury goods 64 28 8

Cosmetics 61 30.3 8.7

Hi-fi/TV/video 54.2 20.8 25

White goods 54.2 37.5 12.5

Detergents 53.8 30.8 15.4

Beverages 40 30 30

Textiles 39.1 39.1 21.8

Cars 35 35 30

Services 28.6 21.4 50

Business to – 25 16.7 58.3 Business

Food 23.5 50 26.5

Mean 40 34 26

What differences between countries would compel you to adapt the marketing mix of the brand?

Type of difference Necessary adaptation (%)

Legal differences 55Competition 47 Consumption habits 41 Distribution structure 39 Brand awareness 38Brand distribution level 37 Media audience 37 Marketing programme success 34 Consumers’ needs 33 Media availability 32 Brand images 30.5 Norms for products manufacturing 27.5 Brand history 25.2 Lifestyle differences 25 Cultural differences 25 Subsidiary sales 23 Consumers’ buying power 22 Consumers’ age differences 12

Which facets of the brand mix are most often globalised? ___________________________________________________________________

% Logotype, trademark 93 Brand name 81 Product features 67 Packaging 53 After-sales service 48 Distribution channels 46 Sponsoring (arts) 32 Sponsoring (sports) 29 Advertising positioning 29 Advertising execution 25 Relative pricing 24 Direct marketing 18 Sales promotion 10

Brand Measurement

Measuring Brand Equity

There are two basic approaches to measuring brand equity. An indirect approach assesses potential sources of brand equity by identifying and tracking consumer brand knowledge structures. A direct approach assesses the actual impact of brand knowledge on consumer response to different aspects of the marketing.

The two general approaches are complementary, and marketers can employ both. In other words, for brand equity to perform a useful strategic function and guide marketing decisions, it is important for marketers to (1) fully understand the sources of brand equity and how they affect outcomes of interest, as well as (2) how these sources and outcomes change, if at all, over time. Brand audits are important for the former; brand tracking is important for the latter.

Brand audits

A brand audit is a consumer-focused exercise that involves a series of procedures to assess the health of the brand, uncover its sources of brand equity, and suggest ways to improve and leverage its equity. Brand audits consist of two steps: the brand inventory and the brand exploratory.

BRAND INVENTORY. The purpose of the brand inventory is to provide a current, comprehensive profile of how all the products and services sold by a company are marketed and branded. Profiling each product or service requires identifying all associated brand elements as well as the supporting marketing program. It is also advisable to profile competitive brands.

The brand inventory helps to suggest what consumers’ current perceptions may be based on.

Brand audits Contd of slide ….

BRAND EXPLORATORY. The brand exploratory is research activity conducted to understand what consumers think and feel about the brand and its corresponding product category to identify sources of brand equity.

The brand exploratory often employs qualitative research techniques, such as word associations, projective techniques visualization, brand personification, and laddering, ethnography and focus groups.

Brand Tracking

Tracking studies collect information from consumers on a routine basis over time. Tracking studies typically employ qualitative measures to provide marketers with current information as to how their brands and marketing programs are performing on the basis of a number of key dimensions. Tracking studies are a means of understanding where, how much, and in what ways brand value is being created.

The Measurement of Brand Associations

What does the brand mean to you?1)Indirect Qualitative Approaches:- Better as

respondents unwilling (as they feel information is embarrassing, private), unable (consumers don’t know real reason) In Projective techniques, goal is disguised “Instead of focusing on brand, discussion centers around use experience, decision process, brand user, off- the- wall perspective such as considering the brand to be a person or animal. Also ambiguous stimuli are used so there is freedom to project experiences, attitudes & perceptions.

Determining Brand Meanings

UNDERSTANDINGBRAND

ASSOCIATIONSINDIRECT METHODS

Free Association

Picture

Interpretation

The Brandas a

Person

The Brand as an Animal,

Magazine, etc.

In-DepthLook at the

Use Experience

Dissectingthe Decision

Process

Describing theBrand User

How BrandsAre

PerceivedDifferently

PersonalValuesDrivingChoice

Contd of slide …

• Free association

a)Word association with brand names, slogans

b)Sentence completion • Check strength of association

Measuring associations by scaling brand perceptions

Scaling approaches are more objective & reliable It involves: 1) Representative sample of customers/identifying target segment 2) Determining perceptual dimensions – both attributes/benefits & user

profile/use situations Specifying competitive set – close competitors, competitors considered, competitors in usage.

3) Determining important perceptual dimensions that discriminate or are better predictors of purchase. (Conjoint analysis)

4) Profiling brand associations vis-à-vis competition & vis-à-vis ideal

(desired Brand positioning).

Brand functions and distributor/manufacturer breakdown

Function or role of Typical product category Power of manufacturer’s

brand or brand brands vis a vis distributor brand

Recognition cue Milk, salt, flour Very weak Practicality of choice Socks Weak Guarantee of quality Wine, food, staples WeakOptimisation of choice, Cars, cosmetics, Strong sign of high quality appliances, paint, servicesperformance. Personalising one’s choice Perfumes, clothing Strong but challenged Permanence, bonding, Trust brands Strong but challenged familiarity relationship.Pleasure. Polysensual brands Strong Ethics and social Reference brands, Strong but challenged. responsibility corporate brands

The 3 layers of brand-

Identity and pyramid models

Brand kernel

Brand style

Brand themes

Culture

Personality Self –Projection

Relationship

Physique Reflection

PRODUCT / MARKET ANALYSIS

PRODUCT & MARKET IN NUMBERS

1. MARKET SIZE & PENETRATION

2. MARKET TREND

3. SEASONALITY

4. BRAND SHARES

5. DISTRIBUTION

6. CONSUMER PROFILE

7. PROMOTIONAL EFFECTIVENESS

THE RULES OF DIFFERENT PRODUCT CATEGORIES

1. FUNCTIONAL PRODUCTS - ROUTINE

PURCHASES. DETACHMENT ATTITUDE.

TO SUCCEED

• BRAND THAT PERFORMS WELL

• COMPETITIVELY PRICED

• STRONG DISTRIBUTION -AS EASY SUBSTITUTABILITY

• STRONG AD PRESENCE

• AGGRESSIVE PROMOTIONAL ACTIVITY (MATURE

MARKET)

THE RULES OF DIFFERENT PRODUCT CATEGORIES

2. IMPULSE PRODUCTS

TO SUCCEED

• VERY BROAD AVAILABILITY - SALES IS IN DIRECT RESPONSE TO PRODUCT DISPLAY

• INSTANT PRODUCT IDENTITY - CUSTOMER HAS ONLY SPLIT SECOND TO DECIDE

• ATTRACTIVE DISPLAYS, PACKAGING

• ADVERTISING PRESENCE

• SLOGAN BASED ADVERTISING

THE RULES OF DIFFERENT PRODUCT CATEGORIES

3. CONSPICUOUS CONSUMPTION PRODUCTS

ARE PRODUCTS THAT ARE USED TO DEFINE & DEMONSTRATE ONE’S PERSONALITY & LIFESTYLE. (CARS, HOUSES, CIGARETTES, DRINKS, CLOTHES, INTERIOR DECORATION)

TO SUCCEED,

• A DISTINCT PRODUCT IMAGE THRU PACKAGING, BRANDING, STYLING, DESIGN & AD.

• IMAGE IS WHAT YOU ARE SELLING, FUNCTIONAL PERFORMANCE IS SECONDARY.

•MEASURES THAT INCREASE GENERAL AWARENESS & EMULATION. SPORT SPONSORSHIPS, CELEBRITY USAGE & FILM PLACEMENT.

•APPROPRIATE DISTRIBUTION & PRICING (NOT CHEAP)

THE RULES OF DIFFERENT PRODUCT CATEGORIES

4. HIGH TICKET ITEMS

LOW ON PEOPLE’S INTEREST LIST.

TO SUCCEED,

• EXCELLENT COMPANY REPUTATION - TO BE IN “CONSIDERATION SET”

• COMPETITIVE PRICING - DON’T BE EXPENSIVE WITHOUT REASON.

• GOOD SERVICE REPUTATION

• DISTRIBUTION IN KEY OUTLETS.

THE RULES OF DIFFERENT PRODUCT CATEGORIES

5. SERVICES

TO SUCCEED,

• SALES / SERVICE PERSONNEL – MOTIVATION & TRAINING

•EVEN CAPACITY UTILISATION

•IMAGE & VISIBILITY THROUGH RIGHT ATMOSPHERES & INTANGIBLES LIKE UNIFORM, STATIONERY.

BUYING POWER INDEX (SEE APPENDIX NO.1)

CATEGORY DEVELOPMENT INDEX

NATIONAL

MUMBAI

BANGALORE

DELHI

CALCUTTA

BPI

100

14

7

5

1

ESTIMATED SALES (BASED ON BPI)

2,00,000

28,000

14,000

10,000

2,000

ACTUAL SALES

2,00,000

56,000

42,000

10,000

1,000

CDI

-

200

300

100

50

BRAND DEVELOPMENT INDEX

NATIONAL

MUMBAI

BANGALORE

DELHI

CALCUTTA

BPI

100

14

7

5

1

ESTIMATED SALES (BASED ON BPI)

30,000

4,200

2,100

1,500

300

ACTUAL SALES

60,000

8,400

4,200

2,250

300

BDI

-

200

200

150

100

SAY FIRM A HAS A MARKET SHARE OF 15% = 30,000

ADVERTISING, MEDIA & SALES PROMOTION

DEVELOPING & MANAGING AN ADVERTISING PROGRAM

• MISSION

• MONEY

• MESSAGE

• MEDIA

• MEASUREMENT

FIVE M’S OF ADVERTISING (SEE APPENDIX NO.10,11,12,13)

ADVERTISING COPY STRATEGY

(CREATIVE BRIEF)

• SHOULD BE TRUE TO OVERALLPOSITIONING OF PRODUCT

• SHOULD BE WRITTEN

• POSITIONING SHOULD BE CLEAR, COMPETITIVE, CORRECT FOR PRODUCT & TARGET MARKET, NON-GENERIC, BELIEVABLE

GOOD COPY STRATEGY

HAS FOUR PARTS

1. WHAT ADVERTISING AIMS TO CONVEY - CENTRAL PROMISE

2. FACTS TO SUPPORT

3. CUSTOMER ADDRESSED

4. TONE & ATMOSPHERE

SUPPORT

1. PRODUCT ITSELF - INGREDIANTS - REAL OR PERCEIVED

2. PEOPLE WHO MAKE IT

3. PACKAGING

4. WAY IT IS SOLD

5. ACTUAL CONSUMER REPORTS

6. PEOPLE WHO BUY IT

7. REGION

8. OPINION OF INDEPENDENT JUDGES

RECOGNISING GOOD ADVERTISING

1. STRATEGIC FIT WITH POSITIONING

2. DISTINCTIVE / EXCLUSIVE

3. COMPETITIVE

4. NON-GENERIC

5. PROVOCATIVE

6. CONTENT MORE IMPORTANT THAN STYLE

7. BOING FACTOR

8. BELIEVABLE LOGIC

9. VISUAL / VERBAL COHERENCE

10. CONSUMER EMPATHY

MEDIA BRIEF

• TARGET AUDIENCE

• ADVERTISING

• REACH V/S FREQUENCY

• MEDIA HABITS OF TARGET AUDIENCE

• TIMING OF CAMPAIGN

• REGIONAL WEIGHTS

• SHARE OF VOICE DESIRED IN EACH MARKET

• CREATIVE REQUIREMENTS - MINIMUM SIZE OR LENGTH OF TIME

JUDGING MEDIA PLANS

1. AGREED TARGET AUDIENCE

2. AGREED ADVERTISING MESSAGE

3. MEDIA DECISIONS

AGREED TARGET AUDIENCE

QUESTIONS TO ASK

1. CAPTIVE SALES OR CONQUEST SALES

2. DEMOGRAPHIC CHARACTERISTICS

3. REGIONAL CHARACTERISTICS

4. PSYCHOLOGICAL CHARACTERISTICS

MEDIA DECISIONS

1. REACH V/S FREQUENCY V/S IMPACT

2. MEDIA TYPES

3. SPECIFIC MEDIA VEHICLES

4. OPTIMAL FORMAT

5. MEDIA TIMING MACROSCHEDULING

MICROSCHEDULING

6. GEOGRAPHICAL MEDIA ALLOCATION

REACH V/S FREQUENCY

REACH

• BROAD UNDEFINED AUDIENCE

• RAPIDLY EXPANDING MARKET

• NEW PRODUCT

• ANNOUNCEMENTS

• LOW CONSUMER USE-UP RATE (INFREQUENTLY PURCHASE PRODUCT)

• STRONG CONSUMER LOYALTY TO OUR BRAND

FREQUENCY

• FORGETFUL AUDIENCE

• COMPLEX MESSAGE

• HIGHLY SEASONAL

• RAPID CONSUMER USE-UP RATE (FREQUENT PURCHASE CYCLE)

• STRONG LOYALTY TO COMPETITIVE BRAND

• IMPULSE

• STRONG COMPETITORS

MEDIA TYPES DEPENDS ON

• MEDIA HABITS OF TARGET AUDIENCE

• BUDGETARY CONSTRAINTS

• PRODUCT CHARACTERISTICS

• TACTICAL FACTORS - COMPETITORS, TRADE

• INHERENT CHARACTERISTICS OF MEDIA

• MESSAGE

SPECIFIC MEDIA VEHICLES

• CIRCULATION, AUDIENCE (READERSHIP), EFFECTIVE AUDIENCE, EFFECTIVE AD-EXPOSED AUDIENCE

• COST PER THOUSAND CRITERION

• ADJUSTMENT FOR AUDIENCE QUALITY & AUDIENCE ATTENTION-PROBABILITY, EDITORIAL QUALITY

• TRPs & QRPs

CONTINUITY V/S BURSTS

CONTINUITY

• FREQUENT PURCHASE PATTERN

• HIGH LEVEL OF IMPULSE BUYING

• EXPANDING MARKET

• NO BUDGET CONSTRAINTS

BURSTS

• INFREQUENT PURCHASE PATTERN

• STRONG LOYALTY TO BRAND

• HEAVY LAUNCH WEIGHT

• BUDGET LIMITATIONS

TIMING DEPENDS ON

• BUYER TURNOVER

• PURCHASE FREQUENCY

• FORGETTING RATE

TIMING PATTERNS (SEE APPENDIX NO.14)

ADVERTISING PATTERNS

• CONTINUITY

• CONCENTRATION

• FLIGHTING

• PULSING

HOW TO USE PROMOTIONS EFFECTIVELY

1. OBJECTIVE - CONSUMERS, TRADE, SALESFORCE

2. UNDERSTAND WHAT EACH TYPE OF SALES PROMOTION TOOL CAN OR CANNOT DO.

3. WHAT LENGTH OF TIME

4. COST EFFECTIVENESS

5. TEST

6. LOOK FOR CREATIVE EDGE

7. USE PROMOTIONS TO STRENGTHEN ADVERTISING POSITIONING

BUYING BEHAVIOUR TYPES

High Involvement Low Involvement

Difference between brands perceived

Difference between brands not perceived

COMPLEX

B A P

VARIETY

SEEKING

WB P A

DISSONANCE

REDUCING

B P New B A

HABITUAL

WB P A

VARIABILITY OF REFERENCE GROUP INFLUENCE

I. PRODUCT

NECESSITY LUXURY

CONSPICUOUS PRODUCT PRODUCT

BRAND BRAND

NON PRODUCT PRODUCT

CONSPICUOUS BRAND BRAND

• PRODUCT MAY SHIFT FROM WEAK TO STRONG BRAND INFLUENCE & VICE VERSA

• DIFFERENT STRATEGIES FOR THE QUADRANTS

II. WHICH GROUP ACTS AS REFERENCE

FCB Planning Model

4. Self satisfaction

(reactor)

Cigarettes, liquor, candy

3. Habit Formation (doer)

Food, household items

Low

Involvement

2. Affective (feeler)

Jewelry, cosmetics,

motorcycles

1. Informative (thinker)

Car, house, furnishings,

new products

High

Involvement

FeelingThinking

BRAND LOYALTY AND BRAND DISCRIMINATION

I. II.MEN’S COLOGNE COLA DRINKS COFFEEE

POWER TOOLS

FAST – FOOD RESTAURANTS GASOLINE

MOTOR OIL COLOR TV

III. IV.

LIGHT BULBS HEADACHE REMEDIES DISPOSABLE RAZORS

SHAVING CREAM COUGH REMEDIES

LOW BRAND LOYALTY HIGH

L

OW

B

RA

ND

DI S

CR

IMIN

AT

I ON

HI G

H

PERSPECTIVES TO CONSUMER BEHAVIOUR

1. DECISION-MAKING PERSPECTIVE

2. EXPERIENTIAL PERSPECTIVE

3. BEHAVIOURIAL INFLUENCE PERSPECTIVE

Classification Of Products

Most goods Most servicesEasy to evaluate

Difficult toevaluate

{{ {High in search qualities {{High in experience qualities {High in credence qualities

CORPORATE NEW BUSINESS PLAN

When gap between future desired sales and projected sales, then three options.

1. INTENSIVE GROWTH – current business

2. INTEGRATIVE GROWTH – build or acquire businesses related to the company’s current businesses.

3. DIVERSIFICATION GROWTH – opportunities in unrelated business.

GROWTH STRATEGIES

INTENSIVE GROWTH – (Ansoff’s Product / Market Expansion Grid )

INTEGRATIVE GROWTH – Backward, Forward, Horizontal

DIVERSIFICATION GROWTH – Concentric (Same technology / Marketing synergy), Horizontal (Appeals to current customers), Conglomerate (No relationship to the company’s current technology, products, or markets).

1. Market- penetration strategy

(DiversificationStrategy)

2. Market- development

strategy

3. Product- development

strategy

Current Product New Product

Current Markets

New Markets

Market Penetration Strategy

Current Users

• More qty per usage

• More no of times(frequency)

• More varied uses

Competitors users

Non-users