Making magic. Creating sparks between brands and today's youth markets
Creating Brands
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Transcript of Creating Brands
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Creating Brands
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Brand
A brand is a name, term, sign, symbol or
design, or a combination of them, intended
to identify the goods or services of one seller
or group of sellers and to differentiate them
from those of competitors.
Create Communicate
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The Role of Brands
Identify the maker
Signify quality
Create barriers to entry
Serve as a competitive advantage
Secure price premium
Simplify product handling
Offer legal protection
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Advantages of Strong Brands
Improved perceptions of
product performance
Greater loyalty Less vulnerability to
competitive marketing
actions
Less vulnerability tocrises
Larger margins
More inelastic consumer
response to price increase
More elastic consumer
response to price decrease
Greater trade cooperation
Increased marketing
communicationseffectiveness
Possible licensing
opportunities
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Brand Elements
Brand Names
Logos
Slogans
Jingle
URLs
Mascots
Trademarkable devices that identify and differentiate a brand
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Brand Element Choice Criteria
Memorable
Meaningful
Likeability
Transferable
Adaptable
Protectible
Brand Building
Defensive
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Brand Dynamics Pyramid (BRANDZ)
Presence
Relevance
Performance
Advantage
Bonding
Strong Relationship
Weak Relationship
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Young & Rubicams Brand Asset
Valuator (BAV)
Differentiation
Energy
Relevance
Esteem
Knowledge
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Brand AssetValuator
Leading
Brand Strength
Differentiation Relevance
Lagging
Brand Stature
Esteem Knowledge
A Two-Dimensional Framework for
Diagnosing Brands: The Power Grid
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Power Leaders
New
Niche/
Unrealized Potential
Declining
Leaders
UnfocusedBR
ANDSTRENG
TH
(Diffe
rentiationandRelevance)
BRAND STATURE(Esteem and Knowledge)
Eroded
Brand Health Is Captured on the
Power Grid
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Drivers of Brand Equity
Brand Elements
Marketing Activities
Meaning Transference
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Line Strategies
Extensions
Adding additional products to an existing product line
in order to compete more broadly in the industry.
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Advantages of Extensions
Extensions can potentially provide the following benefits
to facilitate new product acceptance:
Reduce risk perceived by customers & distributors
Decrease cost of gaining distribution & trial
Increase efficiency of promotional expenditures
Avoid cost (and risk) of developing new namesAllow for packaging and labeling efficiencies
Variety-seeking
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Advantages of Extensions
Enhance the parent brand image
Improve strengths, favorability, and uniqueness of brand
associations
Improve perceptions of company credibility
Convey broader brand meaning to consumers
Dove
Bring new customers into the franchise and increase
market coverage
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Disadvantages of Extensions
Extensions have risks, too.
They can fail.
Moreover, extensions can potentially result in thefollowing costs:
Cannibalize sales of the parent brand
Hurt the image of the parent brand
If the extension fails
Even if the extension is successful
Forego the chance to develop a new brand name or market the
parent brand differently (opportunity cost)
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Line Strategies
Contractions:
Deleting products from product lines if there are low
sales, cannibalization, obsolesce or few resources.
A brand becomes stronger when you narrow its
focus.
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Some Brand Definitions
Brand line a group of closely related product
items.
Brand mix
all brands that a firm sells. Width refers to how many different product
lines the firm carries
Depth
refers to how many variants of eachproduct are offered
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Gillette
Blades and Writingrazors Toiletries instruments Lighters
Mach 3 Series Paper Mate CricketSensor Adorn Flair S.T. DupontTrac II ToniPresto Right GuardVector Plus SilkienceDouble-Edge Soft and DriLady Gillette FoamySuper Speed Dry LookTwin Injector Dry IdeaTechmatic Brush Plus
Width of the product mix
D
epth
ofthe
productl
ines
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Branding Terminology
Parent BrandThe pre-existing Brand that givesbirth to the sub-Brand
Family BrandParent Brand of multiple
extensions Sub-Brand - A new Brand is combined with an
existing Brand
Dockers, Ritz, i-10
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Parent BrandICICI (financial products)
Sub BrandICICI Prudential Life Insurance
Family BrandParent Brand in multiple product
categoriesGE as in GE Medical Systems, GE Lighting,
GE Plastics
Brand Extension
- Line ExtensionColgate with Active Salt in toothpaste
line- Category ExtensionReliance Petroleum, Reliance
Energy, Reliance Money, WIPRO Computers, WIPRO
consumer products