Module I_Concept of Brand

7/29/2019 Module I_Concept of Brand

1/31

Module I

Concept of Brand

MBA (IB)-III


2/31

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

& to differentiate them from those of

competitors.

It can also be defined as a set ofimages & associations linked to a

commercial product.

Dr. Swati Singh


3/31

BRAND = Product + Packaging + Added

Values

Added Values= Quality + Image + Price +

Functions

Dr. Swati Singh


4/31

Managing Brands

Selecting brand name & logo, giving the product an identity &

enhancing its visual recognition Differentiation: with attributes & image

Positioning the brand: Making it the best choice for the targetcustomer

Providing the right distribution & promotion support Keeping the brand alive & active- Brand relaunches,

packaging innovation

Adding more brands to a line

Strengthening the brand portfolio through acquisition/takeover Monitoring the brand through various stages of its life cycle

Brand portfolio restructure

Understanding Brand Equity & building the equity of brands


5/31

Creating Strong Brands

Through:

Quality (Toyota, Sony)

Technological Edge (IBM, Mercedes)

Consumer Understanding (Nestle, Honda,Disney)

Keeping with changing markets (Gillette,

Samsung, Coca-Cola, Colgate)


6/31

Roles That Brand Play

For Consumers

Identification of source of product

Assignment of responsibility to product maker

Risk reducer

Search cost reducer

Promise, bond, or pact with maker of productSymbolic device

Signal of quality


7/31

For Manufacturers

Means of identification to simplify handling or

tracing

Means of legally protecting unique features

Signal of quality level to satisfied customers

Means of endowing products with uniqueassociations

Source of competitive advantage

Source of financial returns


8/31

BRAND EQUITY


9/31

Brand Equity

It is defined as the stored value built up in abrand for achieving competitive advantage.

One measure of equity is the extent to which

customers are willing to pay more for the brand.

Customer-based brand equity occurs when the

consumer has high level of awareness &

familiarity with the brand & holds some strong,

favorable & unique brand associations inmemory.

Dr. Swati Singh


10/31

Five levels of customer attitude toward the

brand for testing brand equity are:

1. Customers will change brands, especially for price reasons.

No brand loyalty.

2. Customer is satisfied. No reason to change the brand.

3. Customer is satisfied & would incur costs by changing

brand.

4. Customer values the brand & sees it as a friend.

5. Customer is devoted to the brand.

Brand equity is related to how many of a

brands customers are in classes 3,4 or 5


11/31

Competitive Advantages of High Brand Equity

The company enjoys reduced marketing costs

due to high level of consumer brand awareness& loyalty. The company will have more trade leverage in

bargaining with distributors & retailers since

customers expect them to carry the brand. The company can charge a higher price than itscompetitors because the brand has higherperceived quality.

The company can more easily launch brandextensions since the brand name carries highcredibility.

The brand offers the company some defenceagainst fierce price competition.


12/31

DavidAakers Brand Equity

Model

Viewed brand Equity as 5 categories ofassets & liabilities linked to a brand that

add or subtract the value

Brand LoyaltyBrand Awareness

Perceived Quality

Brand AssociationOther Brand Assets like Trademark Patents

& channel relationship


13/31

BRANDEQUITY

Brand

Awareness

PerceivedQuality

Brand

loyalty

Other Brand

Assets

Brand

Associations

Reduced marketing costs

Trade Leverage

Attracting new customers

Create awareness

Reassurance

Time to respond to COMPETITIVE threats

Anchor to which other associations can be

attached

Familiarity-Liking

Signal of substance/commitment

Brand to be considered

Reasons-to-Buy

Differentiate/PositionPrice

Channel member interest

Extensions

Help Process/Retrieve information

Reason-to-Buy

Create positive attitude/feelingsExtensions

COMPETITIVE ADVANTAGE

Provides value to

customer by

enhancing

customers:

---------------Interpretation/

processing of

information

Confidence in the

purchase decision

Use satisfaction

Provides value to

firm by enhancing:

---------------Efficiency &

effectiveness of

marketingBrand loyalty

Price/margins

Trade leverage

Brand Extensions

Competitive

advantage

David Aakers Brand Equity Model


14/31

BRAND LOYALTY


15/31

BRAND LOYALTY

Def: It is proposed as consisting ofrepeated purchases prompted by a stronginternal disposition.

It is one of the important basis of equitycreation.

It is a measure of attachment that a

customer has to a brand. Loyalty is the heart of equity & is one of

the important brand equity assets.


16/31

Ways Loyalty is Built Are:1) Find the right market segment for the product

2)Focus on the 4Ps-directly towards the selected segment, i.e.in the manner, they understand it best.

e.g.

Luxury Items- selected outlets, high price, good styling

Price-Sensitive Group- Easily accessible with emphasis on price not styling

3) Offering surprise gifts, extra unused guarantee-helps in

strengthening brand loyalty

4) Using sales promotion when the sales are on decline

5) Continuous evolving of product through new productinnovations to strengthen loyalty

6) Having more personalized service to create high loyalty &

satisfaction.


17/31

BRAND AWARNESS


18/31

BRAND AWARENESS

It is the second brand equity asset.

It consists of brand recognition & brand

recall performance & top-of-the mind recall.


19/31

4 Ways of Creating Value Through Brand

Awareness

1. Brand recognition must be created first.

Awareness acts as an anchor to which

association like attributes & benefits can be

attached.

2. Recognition implies familiarity which sometimes

leads to liking.

3. Awareness also acts as a surrogate for a firmscommitment & substance.

4. Finally it builds brands ability to be considered

in the decision process.


20/31

Brand Recognition

It relates to consumers ability to confirm priorexposure to the brand when given the brand as a

cue.

It requires that consumers can correctly

discriminate the brand as having been previously

seen or heard.

It is at the bottom level of the awareness pyramid.

It is important under low involvement buyingsituation especially when decision is taken in

store or POP


21/31

Brand Recall It relates to consumers ability to retrieve the brand

from memory when given the product category,needs fulfilled by the category, or a purchase or

usage situation as a cue.

It requires that consumers correctly generate thebrand from memory when given as a related cue.

e.g. Kellogg's Recall depends on consumers

ability to retrieve the brand when thinking of cereal category

what to eat in breakfast/snack

At store/At home


22/31

Top-of-The-Mind Awareness

It indicates the relative superiority a brandenjoys over them.

This state is also called Brand Dominance.

A dominant position prevents other brandsfrom getting into buyers mind.

e.g.

J&J baby powderDettol antiseptic

Band-aid


23/31

BRANDING

CATEGORIES


24/31

Service Brands

Characteristics:

IntangibilityInseparability of production and

consumptionInconsistency

Variability


25/31

Service Brands

Service brands are characterized by the need to

maintain a consistently high level of servicedelivery throughout hundreds, or eventhousands of staff.

Although a product component may be involved,it is essentially the service that is the brand.

These are more complex than product brandsfor two reasons:

it is always harder to brand something you canttouchthey are delivered directly by employees.


26/31

Private Labels Brand owned not by a manufacturer or

producer but by a retailer or supplier whogets its goods made by a contract

manufacturer under its own label.

Also called store brand Positioned as lower cost alternatives to

regional, national or international brands

e.g. Pantaloons, Westside, Reliance, FoodBazaar

ADVANTAGES OF PRIVATE LABEL

Lower Prices


27/31

Industrial Brands

Microsoft, Dell

Helps in making consistent impression

on stakeholders

Major communication instruments aredirect sales, direct marketing, PR,

Trade shows, exhibitions, sales

promotion & e-marketing


28/31

Luxury Brands

Top 1% and wealthy are the targets ofluxury goods

Major marketing Strategies includes:

Selective retailingChannel differentiation

Personnel Differentiation

I t t B d


29/31

Internet BrandsCreating Strong Brands on Internet:

Personalization tool

Customer Database

Customer control

Collaborative tool

Purchase-process streamlining tool

Stored personal information

Avoid filling out forms

Self-service tools

My account page

Personalized services

Do-it-yourself product design tools

Dynamic-Pricing tools

e.g. Facebook/Linkedin, Google/Yahoo, Ebay/Amazon,Monster.com/Naukri.com, Makemytrip.com


30/31

Heritage Brands

The brands that defined our economy,consumption and identity have

evolved with the times.

e.g. Bata, Dabur, Burnol,Amrutanjan, Chawanprash, tortoize

Mosquito Coil, Lal Ghuti, Maruti,

Rasna, Vicco, Roohafza, Taj Tea,Boroline, Ponds, Lacto calamine,

Vicks, Cherry, Dalda, Benadryl ,

Saridon, Hamdard Sinkara, Parle-G,

Lifebu Limca


31/31

Top of Mind Recall

Nokia, Tata, Colgate, Lux, Amul, Lifebuoy,Horlicks, Dettol, Pepsodent, Britannia

Module I_Concept of Brand

Documents

Transcript of Module I_Concept of Brand