Brand Management

1
Brand Management
2
Historical Evolution of Brands

• Branding was Stamping for Identification
• Animals were "Branded" for identification of
  their
• Ownership
• Branding was defined by Oxford Dictionary as, 'to
  mark
• indeilbly as proof of ownership, as a sign of
  quality, or for
• any other purpose'
• Hence Branding began as a legal issue even on
  products, however is soon became important in
  that-
• Source of Product became tracable
• Quality was assured
• Consumer loyalty to a producer became
  legitimate and expected

3
Historical Evolution of Brands

• Rapid rise of urban growth from 1960s and
  growing distance between producer and consumer
  led to rapid growth in Branding
• The growth was supported by advent and
  proliferation of MASS MEDIA and ORGANISED
  RETAILING. The former facilitating branding and
  the latter necessiating it
• From 1980s Intangible Value addition has come to
  be a chief value building element and hence today
  all the more importance of Branding

4
Branding

• Branding is a process of brand development and
  its management (which includes issues as Brand
  Extension, Brand Health Monitoring, Brand
  Rejuvenation the like)
• Brand is a collection of associations,
  commercially material with regard to a commercial
  entity
• (which can be Product/productcategory/firm/Places
  
• /personality like entities)

5
Nature of Chief Associates Used

• Associate Form Example
• Verbal Schweppes
• Aural Martini melody
• Visual Old Spice
• Packaging Boost
• Symbols Duckbag, Dulux Dog
• Analogies Famous Personalities, Celebrities
• Metaphors Swiss Craftsmenship, Americanness
• Tone of Voice TSB, National Geographic,
  Doordarshan
• Structural BH
• Modified from Brand Typology by Langmaid and
  Gordon 1988

Rise in Simplicity Of Brand Building
6
Use of Brand as a Device

• Brand is useful as a-
• Sign of Ownership
• functional device
• Risk reducer
• Differentiating device
• Symbolic device
• Legal device
• Strategic Device

7
Brand Selection Nuances, a view-

• Significant
• Perceived Brand
• Differences
• Minor
• Perceived Brand
• Differences
• High Low
• Consumer Consumer
• Involvement Involvement
• Typology of Consumer Decision process, adapted
  from Assael, 1987

Extended Tendency Problem Solving to Limited
Problem Solving Dissonance Limited
Problem Reduction Solving
8
Two Sides of the Lonely Coin

• Brand Edifice
• Surreal Edifice
• Real Edifice
• Brand Equity
• Surreal Edifice
• Brand Essence
• Brand Identity
• Brand Personality
• Projection Efficacy
• Projection Equity
• Real Edifice
• Total Product Value
• For all business purposes, perception is the
  reality

9
Perceptions of Quality

• Quality is free
• Philip Crosby
• Quality and the Image of Quality
• Promises for Ages
• Quality Positioning for all Products ?
• Quality, a Life Style ?

10
Perceptions of Quality

• Quality is free
• Philip Crosby
• Quality and the Image of Quality
• Promises for Ages
• Quality Positioning for all Products ?
• Quality, a Life Style ?

11
Brand Loyalty

• The strength of the consumers preference for a
  brand corresponding to his readiness or otherwise
  for using a competing brand can be termed as one
  definition of Brand Loyalty
• Brand Loyalty is often the core strength of the
  brand and often a major bearing variable in
  determination of brand equity
• Consumers need a reason to change
• Consumers donot need a reason to change

12
Brand Awareness

• Without Awareness, Where is the Brand ?
• Top of the Mind Recall
• Unaided Recall
• Aided Recall
• Faint Recall
• Unaware of the Brand

13
Brand Loyalty

• Levels of Brand Loyalty-
• Committed Buyers
• Likes the Brand, considers it his friend
• Satisfied buyer with switching costs
• Satisfied/Habitual buyer , no reason to change
• Switchers - Price Spotters, Variety Seekers,
  Indifferents
• David Aaker
• (The Loyalty Pyramid)

14
Landors Image Power(Mim Ryan assesment The
first step in Image managements, Tokyo Business
Today Sep, 1988, PP. 36-38, numbers are
approximate)

• The Most Powerful Brands in the US-
• Company/Brand Share of Mind Index/Awareness
  Esteem Index Image Power
  Rank Order
• Coca-Cola 78 68 1
• Campbells 60 67 2
• Pepsi-Cola 67 61 3
• ATT 63 64 4
• McDonalds 77 50 5
• American Express 65 50 6
• Kellogs 64 58 7
• IBM 58 65 8
• Levis 58 63 9
• Sears 62 59 10
• Rolls Royce 46 63 30
• Nissan 66 43 169
• Datsun 67 41 177

15
Ages of best known Brands

• Age of Brand Percentage of 4,923
• Brands Mentioned
• Over 100 years 10
• 75 to 99 years 26
• 50 to 24 years 28
• 25 to 49 years 04
• 15 to 24 years 04
• Under 14 years 03
• Source- Adapted from Leo Bogart and Charles
  Lehman, What Makes a Brand Name Familiar ?
  Journal of Marketing Research February 1973, PP.
  17-22

16
The Leading Brands - 1925-1985
Product Leading Brand, 1925 Current Position
1985 Bacon Swift Leader Batteries Everyday
Leader Biscuits Nabisco Leader Breakfast
Cereal Kellogg Leader Cameras Kodak Leader
Canned Fruit Del Monte Leader Chewing
Gum Wrigley Leader Choclates Wrigley No. 2
Flour Gold Medal Leader Mint Candies Life
Savers Leader Paint Sherwin-Williams Leader

17
The Leading Brands - 1925-1985
Product Leading Brand, 1925 Current Position
1985 Pipe Tobacco Prince Albert Leader Razors
Gillette Leader Sewing Machines Singer Lea
der Shirts Manhattan No. 5 Shortening Crisco
Leader Soap Ivory Leader Soup Campbell
Leader Tea Lipton Leader Tyres Goodyear
Leader Toothpaste Colgate No. 2 Source
Thomas S Wurster, The Leading Brands
1925-1985, Pespectives, The Boston Consulting
Group, 1987

18
How to Achieve Awareness

• Communicate Intensely
• Be Different, Memorable
• Involve a Slogan or a Jargon that is easy to get
  on lips
• Symbol Exposure has to be adequate
• Publicity and PR ought to be intensely employed
• Event Sponsoring and Event Association
• Consider Celebrities
• Recall Requires Repetition

19
Limits of Awareness

• Awareness by itself does not lead to purchase
• Awarness can be increased through controversy but
  
• the same is found not to useful
• Even uniqueness of awareness generation does not
• help unless backed by proper value offer
• Awareness has to continously kept up and is not
  self
• sustaining
• Higher the impulse purchase, higher the need for
  Top of
• Mind Awareness

20
Brand Loyalty, a view-

• Heavy category users use a variety of brands
• Big brands are bought more frequently than
  smaller
• Brands
• Brands most loyal customers are least profit
  yielding
• since they buy the brand infrequently
• Any Brands easy new converts are the consumers of
  
• competing brands who buy them infrequently
• Ehrenbergs emperical work, 1993

21
Loyalty vs Profit Pyramid
of Category Volume
Loyalty
High
High Profit
83
16
16
14
Medium Profit
Higher
16
Highest
3
Low Profit
0
52
No Profit
V Low / Zero
consumers of a product category
Yogurt Category profit and loyalty matrix of US,
derived from Hollander 1995 and Ehrenberg 1993
22
Strategic Value of Brand Loyalty
Enhances brand equity and hence the value of the
firm Reduced Marketing Costs Trade Retail
Leverage Attracting new customers Brand
Awareness created Re-assurance to new
customers Time to respond to competitive threats
23
Brand Definition/s

• 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 a group of
  sellers and to differentiate them from those of
  competitors
• Philip Kotler
• A successful brand is an identifiable product,
  service, place or person, augmented in such a way
  that the buyer or user perceives relevant, unique
  added values which match their needs most
  closely. Furthermore, its success results from
  being able to sustain these added values in face
  of competition
• Leslie Malcolm,
• Creating Powerul Brands

24
Brand Definition/s

• A Brand is a distinguishing name and/or symbol
  (such as a logo, trade mark, or package design)
  intended to identify the goods or services of
  either one seller or a group of sellers, and to
  differentiate those goods or services from those
  of competitors
• David Aaker

25
Brand Demise ?

• Downtrading is on the increase
• Waiting for Discounted Merchandise
• Falling Brand Loyalty and increasing switches
• Increasing Brand Parity
• Increasing Brand Clutter
• Premium brands coming down to earth
• High rate of Brand Failures
• Increase in use of Promotions over Developing
  Strong Brands
• Retailers Store Brands and Private Labels are
  going strong

26
Brand Sayings

• A Product is something that is made in a
  factory, a brand is something that is bought by a
  customer. A product can be copied by a
  competitor, a brand is unique. A product can be
  quickly outdated a successful brand is timeless
• Stephen King
• WPP Group, London

27
Life and Death of Brands

• Brands have no right to exist. They are not
  guranteed by the constitution. There is no
  economic law that expects them to fuel supply or
  demand. They carry no inbred immune system. It is
  possible to sell a product or service without
  creating an elaborate brand in fact, it happens
  all the time. It would take some major
  adjustments, but global economies would
  eventually survive if brands were to fall out of
  sight and never be heard from again. While brands
  admittedly become the foundation of our
  commercial markets, they are, hard as it might to
  be to accept, dispensable.
• Lynn B Upshaw

28
Constituent Categories of the Product

• Product- Function, Design, Packaging, Price,
  Efficacy,
• Features
• Services- Before Sales Service, After Sales
  Service
• Delivery, Availability, Advice, Finance,
  Warrantees, Gurantee, Add-ons
• Brand- Perceptions on issues (like Ethical
  reliabililty, Quality, etc.) with regard to
• Corporate Brand, Product/s Brand

29
Commodity to Brand

Branded Markets
Price Differentiation / Margins
Intangible Value Addition
Commodity Markets
Product/Image Differentiation
30
illusion of Truth

• Consumer Preference Tests on Diet Coke Diet
  Pepsi
• Blind Tests Open Branded Test
• Prefer Pepsi 51 23
• Prefer Coke 44 65
• Equal/cannot say 5 12
• Consumers Experience the Power of the Brand

31
Brand Equity

• Brand Equity is a set of brand assets and
  liabilities linked to a brand, its name and
  symbol, that add to or subtract from the value
  provided by a product or service to a firm and/or
  to that firms customers
• David Aaker

32
Brand Equity

• In 1985 Reckitt Colman acquired Airwick
  Industries and put on its balance sheet 127 Mn
  Pounds as financial value resulting from the
  intangible benefits of goodwill, heritage and
  loyalty conveyed by the newly acquired brand
  names
• In 1988 Rank Hovis Mcdougal put 678 Mn Pounds on
  their balance sheets as the valuation of their
  brands
• In 1988 Nestle and Jacobs Suchard fought for
  ownership of Rowntrees tangible assets worth
  300Mn Pounds but Nestle had to pay for control,
  2.5bn pounds. The difference of 2.2 bn pounds was
  for brands of Rowntrees like KitKat, Polo,
  Quality Street and After Eight Mints

33
Issues in Managing Brand Equity

• The basis of brand equity
• Creating brand equity
• Managing brand equity
• Forecasting the erosion of equity
• The Extension decision
• Creating new names
• Complex families of names and subnames
• Brand-Equity measurement
• Evaluating brand equity and its component assets
• David Aaker

34
Worlds Most Valuable Brands

• Rank Brand Valuation in mn
• 1 Marlboro 44,614
• 2 Coca-Cola 43,427
• 3 McDonalds 18,920
• 4 IBM 18,491
• 5 Disney 15,358
• 6 Kodak 13,267
• 7 Kelloggs 11,409
• 8 Budweiser 11,026
• 9 Nescafe 10,527
• 10 Intel 10,499
• Financial World Magazine, global survey, 1996

35
Relevance of Branding

• Branding for Producers
• Branding for Consumers
• Brands the Market

36
Pervasive Brands

• Products
• Services
• Events
• Political Parties
• Personalilties
• Places
• Sports

37
Process of Branding

• Segmentation
• is the classification of the market into groups
  of consumers on some basis like Class, Gender,
  Age, Education, Religion, lifestyle and the like
• it helps focus more and better since consumers
  also consume images
• Targeting
• refers to the conceptual and active efforts put
  in addressing the selected segment
• Positioining
• Having selected the segment and decided to
  target it, accordingly Images need to be built
  which in association with many other factors,
  finally form in the consumers mind, an Image for
  the company or product, called the Brand Image

38
Issues in Branding

• Brand Positioning
• Brand Communication
• Brand Equity

39
Brand Equity
Provides Value to (by enhancing)
- Customer Firm Interpretation
Loyalty /Processing Margins Of
information B-Exten. Confidence in
Trade
Lev. Purchase Decision Use Satisfaction
Brand Awareness Brand Loyalty Perceived
Quality Brand Associations in addition to
perceived Quality Brand Assets as Patents, Trade
Marks, Channel Relationships and others
40
Issues in Branding

• Brand Extension
• Brand Rejuvenation
• Brand Repositioning
• Brand Architecture
• Monolithic
• Extended / Hybrid
• Free

41
Issues in Branding

• Brand Identity
• Brand Personality
• Brand Essence
• Brand Associations

42
Issues in Branding

• Brands
• Endorsing Brands
• Source Brands
• Retailers Brands
• Private Lables

43
Issues in Branding

• Corporate Brands
• Product Brands
• Product Category Brands
• Collective Brands
• Personality Brands
• Heritage / Historical / Geographical Brands
• Co-Branding

44
Issues in Branding

• Collective Brands
• Owned by Government
• Owned by none but self developed
• Owned by firms
• Development of Collective Brand, Collectively

45
Issues in Branding

• Co-Branding (Intel Compaq)
• Co-Branding (Shell Fiat Palio)
• Co-promotion (Colgate free with Ariel)
• Co-communication (Oracle with TCS)
• Co-Branding Dynamics
• Win-Win Stronger gets more weaker gets less
• Lose-Win Stronger gets less Loser loses more
• Lose-Lose Stronger loses less Weaker loses more

46
Issues in Branding

• Brand Leadership -- David Aaker

47
Variables in Branding

• Brand Awareness
• Top of the Mind Recall
• Unaided Recall
• Aided Recall
• Brand Recognition
• Brand Unawareness
• Brand Knowledge
• Brand Preference
• Brand Usage
• Brand Loyalty

48
Variables in Branding

• Brand Assets
• Brand Evaluation
• Brand

49
Brand-Trends

• Global Brands
• Thematic Brands
• Heritage Brands
• Empty Brands

50
Brand Equity
51
Building Strong Brands
52
Building Global Brands
53
Brand Leadership
54
Designing Brands
55
Service Brands

• Search Services
• Experience Services
• Credence Services

56
Experiential Products Brands
57
Collective Brands
58
Thematic Brands
59
Retailer Brands Store Brands
60
Private Labels
61
Brand Health over Ages
62
Types of Associations

• Product Attributes
• Intangibles
• Customer Benefits
• Relative Price
• Use / Application
• User Customer
• Celebrity / Person
• Life Style / Personality
• Product Class
• Competitors
• Country / Geographic Area

Brand Name Symbol
63
Value of Brand Associations

• Help Process / Retrieve Information
• Differentiate / Position
• Reason to Buy
• Create Positive Attitudes / Feelings
• Basis for Extensions

64
Psychological Benefits

• Product Feature Rational
  Psychological Benefit Benefit
• Computer Bubble Memory cannot lose work Job
  Safety / Security
• Banking High Yield IRA Make High Return
  Independence
• / Financial security
• Shampoo Built in Conditioner Full, thick hair
  Confidence about looks
• Shampoo Natural protein safe to use
  Exciting / sexy
• everyday
• Source- Staurt Agres, Emotion in Advertising An
  agency view, The Marschalk Company, 1986

65
The Measurement of brand associations

• List out Associations
• Investigate the existence and strength of
  associations
• Make Absolute Measurements
• Make Relative Measurements
• Different techniques as Perceptual Mapping, MDS
• and other are useful
• Direct and Indirect Investigations are carried out

66
Indirect methods of probing associations

• Determining Brand Meanings-
• Picture Interpretation
• Brand as a Person
• Brand as an Animal
• In-depth look at use experience
• Dissecting the decision process
• Describing the brand user
• How brands are perceived differently
• Personal Values driving choice
• Free association

67
Positioning (Aaker)

• Selecting, Creating and Maintaining Associations-
• Self Analysis
• Brand Attributes
• Brand Perceptions
• Competitors Associations
• Differentiate
• Target Market
• Provide Reason to Buy
• Add Value

68
Name, Symbol and Slogan (Aaker)

• Name should -
• Be Easy to learn
• Suggest the product class
• Support Symbol or Slogan
• Suggest Brand Associations
• Have no undesirable associations
• Be Distinctive
• Be Legally tenable

69
Name, Symbol and Slogan (Aaker)

• Symbols ought to-
• Get into Memory
• Suggest Associations
• Suggest Product Class
• Enhance Awareness
• Develop positive associations
• Culturally Enrich the product
• Slogans are the Spice of Communications

70
Brand Extensions

• Five possible Results of Brand Extensions-
• The Brand Name aids extension
• The extension enhances the brand name
• The brand name fails to help extension
• The brand name is damaged
• The brand is killed
• Aaker

71
Brand Extensions

• Brand Extensions are successful when-
• Transferability of skills and competencies to new
  brand
• Resources are enough to support an extension
• There is no clash between the brand essence
• The extension brings synergy in operations
• The extension is in related product categories
• The target segments are same or similar
• Coherence across communication mix is upheld
• Product Design coherence adds to brand building

72
Revitalising brands

• Increasing Usage
• Finding new uses
• Entering new markets
• Repositioning the brand
• Augmenting the Product / Service
• Obsoleting existing products
• Extending the brand

73
Global Branding

• Segmenting, Targetting, Positioining, HOW ?
• Global, Local or Glocal ?
• Thematic Brands can easily be tailored for the
  Globe
• Collective Brand too can easily be made Global
• Technological products and Product based
  positioning is easy to take
• global
• Life style products in the premium end can easily
  be branded global
• Life style products in value for money range are
  difficult to brand globally
• Products where intangible value addition is
  psychological and cultural are
• difficult to brand globally
• Products which are Historical are difficult to
  intangibly augment using
• global metaphors and communication
• The same name and symbol and slogan, does it make
  the brand Global ?

74
Brand Equity in Aakers conception
Brand Awareness
Brand Associations
Brand Equity
Brand Loyalty
Perceived Quality
Other Proprietary Assets
75
Value of the Brand

• Price Premiums generated by the brand
• Replacement Cost
• Stock Price owned to the brand
• Future Earnings Potential
• Appraising Brand Assets
• Strategic Value of Brands
• A Multiplier has to be estimated and agreed upon
  in most of
• the above calculations

76
Personality and Self Concept

• Self Image
• Perceived self image through others
• Ideal Image
• Aspirational Image
• Brand Image

77
Basis for Segmentation

• Geographic
• Demographic
• Psychographic
• Behavioural

78
Positioning Nuances

• Under Positioning
• Over Positioning
• Confused Positioning
• Doubtful Positioning
• Positioning is always done on the central idea of
  an ATTRIBUTE/S

79
Positioning Styles, Fashions and Fads

• Page 305 kotler

80
Branding

• Other Peoples minds are a wretched place to be
  at
• Arthur Schepenheur
• Whats in a name ? Shakespeare
• So Much for the Brand Image
• But We all Know . . .
• There are Watches and there are Swiss Watches
• There is Fashion and there is Milan Fashion
• There are Cars and there are Rolls Royce Cars

81
What is a Brand ?

• Brand is an effective collection of associations
  in the consumers mind
• The actual product use, Word of Mouth,
  Information from print and media and Advertising,
  all lead to the creation of a brand
• Branding gives the producer an additional profit
  and to the consumer an assurance of quality and
  an Image to consume
• Branding leads to Product Differentiation even
  when functional similarity exists

82
Brands and the Perceptual Space

• Consumers mindspace stores perceptions and
  images about a range of Individuals and Products,
  we in branding shall be concerned with the
  conceptual space of images pertaining to the
  products
• Jack Trout and Al Ries, the Gurus prescribe
  strong focused branding as opposed to Umbrella
  Branding practiced by many
• Brand Research leads to the collection of data
  and insights pertaining to the perceptual space
  of
• consumers, pertaining to any product/product
  category

83
Branding and Attributes

• Brand Image to be created has to be around
  certain attributes consumers would prefer to
  consume
• A loss of focus on one or a limited and small no.
  of attributes leads to Brand diffusion
• Attribute identification hence is the true
  beginning of branding
• Interactive media and the net shall give a new
  facet to the branding process
• Do Brands have a living personality ?

84
Self Image and Brand Image Concept

• Every Man and consumer beholds a Self Image, an
  Image of himself
• The Consumer also beholds an Aspirational Self
  Image, an Image of What he aspires to be
• Attributes which interact and quicken these
  images to life have been identified by S Sen
  Gupta
• Branding needs to bring closer the two images

85
Brand Extension, Rejuvenation Alteration

• Brand Extension refers to the extension of an
  existing brand name to a newer product/s
• Brand Rejuvenation refers to the continual
  efforts being put to keep up the brand in the
  consumers consciousness and avoid Brand Clutter
• Brand Alteration refers to a unique type of
  rejuvenation where the attribute on which the
  brand is positioned or the image, is to be
  changed and hence J ND

86
Brand Personality and Attributes

• Brand personality is finally constituted of
  Attributes projected in some specific
  personalized way
• Common feelings experienced by Ad. Audience
  (Plutchik)
• Defiant Adventurous
• Surprised Affectionate
• Enthusiastic Elated
• Receptive Youthful
• Unhappy Macho
• Joyful Trendy
• Hesitant Cozy

87
Books on Branding

• Marketing Management by Philip Kotler
• Managing Brand Equity by David Aaker
• Building Strong Brands by David Aaker
• Brand Leadership by David Aaker
• Brand Positioning by Subroto Sen Gupta
• Strategic Brand Management by Noel Kepferer
• Brand Warfare by Al Ries and Jack Trout
• The 22 immutable laws of Branding by Al Ries and
  Laura Ries
• Marketing Aesthetics by Brand Smicdt
• Creating Powerful Brands by Leslie and Malcolm

88

• Thank You Brands