MKT 465 - Lecture 1

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Brands and Brand ManagementA holistic overview.

A presentation by:

Varqa Shamsi Bahar

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Understanding the Environment

External environment is changing much more dramatically

than ever before.

Marketers need to understand the environment in context

of the brand.

Understanding the environment is the starting point in

winning in the marketplace.

3A presentation by Varqa Shamsi Bahar

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Some Significant Dimensions of the Environment


Category

CompetitorsConsumers

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Customer needs, wants and demands


States of deprivation

Maslows hierarchy of needs.Needs

Form that needs take as they are shapedby culture and individual personalityobjects that satisfy needs.

Wants

Wants backed by buying powerDemands

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One Question you simply cannot

afford to get wrong?

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Who is your consumer?


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Zero in to Your Consumer

What is the environment?

Which segments?

Within each segments

which are the target segments?


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How do you understand the Consumer

Focus group and other research studies

Consumer immersion


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What is a brand?

American Marketing Association Defines Brand

as:

Name, term, symbol, sign, or design, or a

combination of them, intended to identify the

goods and services of one seller or group of

sellers and to differentiate them from those of

competition


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Brands are a collection of associations


UserFriendly

Innovative

CoolHigh

perform-ance

Reliable/-durable

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Brand are the most valuable assets of the

company

According to Stuart (1956), If this company

were to split up I would give you the property,

plant and equipment and I would take the

brands and the trademarks and I would fare

better than you.

E.g. Meril winter care : One brand that makes

the company have a good end of the yearprofitability.


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Different Levels of a product

AugmentedProduct level

Actualproduct

level

Corebenefit

level


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Example

Warranties, aftersales service.

PortableMP3 Player

Musicentertainment the move


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Significance of Customer Satisfactionvia

expectation and performance


Customerexpectation

ProductPerformance

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Why are brands important?

For consumers: Identification of the sourceof the product in terms of the producer.

Risk Reducerdue to previous experience with different brands, they can trusta specificbrand to address their needs. Hence, simplifies purchase decision making.

Search cost reducer:If consumer recognize the brand and have knowledge about it, thenthey do not have to engage in a lot of additional thought or processing of information tomake a purchase decision. Hence search cost is reduced internally(in terms of how muchthey have to think) and externally(in terms of how much they have to look around).

Source of bond with the consumer: consumers become loyalto the brand provided thatsatisfaction has occurred from past purchases.

Symbolic deviceallow them to project self image. Example: Chanel 5 (classy image).

Symbol of quality.

Conclusion: In short, a brand reduces risk and simplifies purchase decision making.17A presentation by Varqa Shamsi Bahar

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Why are brands important? Continued

For firms: For firms, brands are the most valuable asset of the company.

Hence, a trademark/copyright should be implemented so that otherscannot sell the product under the brand name.

As brands are a signal of quality to satisfied customersrepeatpurchase occurs which secures demand and revenue for thecompany. Source of financial returns: Strong brands = better earnings= profitability.

Means of endowing products with unique associations whenbranded.


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Different Types of

Brand Names


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Types of brand names: 1

Some companies use a brand name on generally all their products:

Tibet washing powder, Tibet toothpowder, Tibet beauty soap, TibetShaving cream, Tibet Snow, Tibet chandan attor, Tibet 570 soap,Tibet lip jeland the list goes on!

Discussion: So what is the brand Tibetin the consumers mind? Differentconsumers will give you different opinions. What is Tibets positioning?

Tibet has violated one of the basic laws of branding law of contraction.

The easiest way to destroy a brand is to put its name on everything. That iswhy Tibet is not a market leader in any category it is doing business in.


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The Law of contraction

A brand becomes stronger when you narrow its focus.

E.g. Meril has narrowed its focus on winter care. It

contributes to almost 20% of overall company revenue and is

currently the market leader in the winter care category of

Bangladesh.

A powerful branding program always starts by contracting the

category, not expanding it.

However, companies want to be very business oriented and do

not want to invest to establish a new brand.


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Companies assign individual brand names that are unrelated to

the company name:

Square Toiletries Limiteds: Whiteplus, Chaka, Kool, Magic.

Unilevers: Ponds, Wheel, Sunsilk, Dove.

P and Gs: Tide, Head and shoulders, Pampers.


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Brand names are assigned according to peoples names:

Example: Jui, Meril, Paul Mitchel, David Beckam, Beyonce.

When brands names are of a specific celebrity name, there is a

sudden acceptance of the brand amongst the massive fan base

the celebrity possesses.

Same thing occurs when a celebrity endorses a brand. E.g. Lux,Olay, Head and Shoulders, channel no. 5 etc.

You buy the star and you get the sales!


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There are brand names based on places:

e.g. DHAKA FM is this newly launched radio channel.

Tell me what is wrong with this brand name?

Other examples are: Biman Bangladesh Airlines.

There are brand names based on animals:

e.g. Dove, CAT


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Some brand names have inherent product meaning:

Mermaid Caf means that its a caf near the sea.

Other examples are: Vanish, Saaf, Xpel, fair and handsome.


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Challenges and Opportunities of

Branding


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Challenges and Opportunities of Branding cont..

1. Consumers Expectationsthe gap between performance and

expectation is growing (e.g. multi layered toothpaste).

Companies need to continuously improve the quality of the

product.

Brands need to be emotionally attached to the consumers.

If The consumers dont love what is there on the offer, then

they wont be interested.

Example: Close Up: The Closer the Better.

Jui: Bedhe Rakhun Chuler Faadeh.

Pepsodent: The brushing experience of father and son.


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Challenges and Opportunities of Branding cont.

2. Brand Proliferation:

Different product ranges from different categories are being brandedunder an umbrella brand.

Example1: Jui entered the shampoo market with Jui Sense ofBalance. Very Risky. Heavy marketing investment done. Product

quality was not up to the mark. Big failure.

Its a big challenge for marketers to make sure that the brand is well

sustained while entering other product categories. Discussion: How do you face this challenge?


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3. Media Fragmentation

Traditional advertising media is getting fragmented

CostTo get a reasonably good exposure of a new TVCat least 70 lacs needs to be spent inBangladesh now! To get that return of marketing investment it takes brands months to reachbreakeven.

Clutter Too many adverts going on. Its getting harder to grab consumers attention.

FragmentationNumber of TV/Radio stations are growing. More and more people are subscribinghindi channels. Its difficult to reach the target consumers.

Technology factorwhich enables consumers to avoid commercials.

BUZZ MARKETING, GEURILLA MARKETING, Non traditional media which is more interactive is emerging:e.g. outdoor branding and event sponsorship, market activations, superstore shelf branding etc.


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4. Increased Competition

Happens due to:

Globalization: Threat of new entrants who want to enter your market as a source of morerevenue.

Low Priced Competitors: chineese products, and their main bargain is low cost.

Brand Extensions: many companies might extend their existing brand into a new categorywhich is a threat.

Deregulation:when government reduces its role and allows an industry a greaterfreedom in how it operates. More freedom will lead to more competition.


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5. Increased Cost

More Competition = More investment needed to establish a new brandor supporting an existing brand.

Because of this factor many new brand eventually fail which is anotherreason why marketers decide to go for a brand extension to enter anew product category.

6. Greater Accountability

There exists a pressure to meet short terms revenue and profit targets.

This might create adverse long term effects on the brand.e.g. Shakti Toilet Cleanerall eyes of Shakti and how much it is

spending.


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The brand equity conceptsimplistic form.


1. You make aproduct

2. You give it abrand name

3. You tell theconsumer how

great and uniquethe brand is

4. The consumerlistens to you and

goes out to buythe brand

5. They realizehow great it is(satisfaction)

6. They value youbrand and are

loyal to it

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Strategic Brand Management Process

1. How you buildbrand equity.

2. How you measure (quantify)brand equity.

3. How you Growand Sustainbrand equity.


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Case Study Session

How Starbucks' Growth Destroyed Brand Value


MKT 465 - Lecture 1

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