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Brand Management


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Title: Brand Management

Brand Management
Historical Evolution of Brands
  • Branding was Stamping for Identification
  • Animals were "Branded" for identification of
  • Ownership
  • Branding was defined by Oxford Dictionary as, 'to
  • 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
  • Source of Product became tracable
  • Quality was assured
  • Consumer loyalty to a producer became
    legitimate and expected

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

  • 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
  • (which can be Product/productcategory/firm/Places
  • /personality like entities)

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,
  • Structural BH
  • Modified from Brand Typology by Langmaid and
    Gordon 1988

Rise in Simplicity Of Brand Building
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

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
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

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 ?

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 ?

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

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

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,
  • David Aaker
  • (The Loyalty Pyramid)

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

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.

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

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

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

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
  • sustaining
  • Higher the impulse purchase, higher the need for
    Top of
  • Mind Awareness

Brand Loyalty, a view-
  • Heavy category users use a variety of brands
  • Big brands are bought more frequently than
  • Brands
  • Brands most loyal customers are least profit
  • 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

Loyalty vs Profit Pyramid
of Category Volume
High Profit
Medium Profit
Low Profit
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
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
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
  • 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

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

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

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

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

Constituent Categories of the Product
  • Product- Function, Design, Packaging, Price,
  • Features
  • Services- Before Sales Service, After Sales
  • 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

Commodity to Brand

Branded Markets
Price Differentiation / Margins
Intangible Value Addition
Commodity Markets
Product/Image Differentiation
illusion of Truth
  • Consumer Preference Tests on Diet Coke Diet
  • 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

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

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
  • In 1988 Rank Hovis Mcdougal put 678 Mn Pounds on
    their balance sheets as the valuation of their
  • 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

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

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

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

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

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

Issues in Branding
  • Brand Positioning
  • Brand Communication
  • Brand Equity

Brand Equity
Provides Value to (by enhancing)
- Customer Firm Interpretation
Loyalty /Processing Margins Of
information B-Exten. Confidence in
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
Issues in Branding
  • Brand Extension
  • Brand Rejuvenation
  • Brand Repositioning
  • Brand Architecture
  • Monolithic
  • Extended / Hybrid
  • Free

Issues in Branding
  • Brand Identity
  • Brand Personality
  • Brand Essence
  • Brand Associations

Issues in Branding
  • Brands
  • Endorsing Brands
  • Source Brands
  • Retailers Brands
  • Private Lables

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

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

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

Issues in Branding
  • Brand Leadership -- David Aaker

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

Variables in Branding
  • Brand Assets
  • Brand Evaluation
  • Brand

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

Brand Equity
Building Strong Brands
Building Global Brands
Brand Leadership
Designing Brands
Service Brands
  • Search Services
  • Experience Services
  • Credence Services

Experiential Products Brands
Collective Brands
Thematic Brands
Retailer Brands Store Brands
Private Labels
Brand Health over Ages
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
Value of Brand Associations
  • Help Process / Retrieve Information
  • Differentiate / Position
  • Reason to Buy
  • Create Positive Attitudes / Feelings
  • Basis for Extensions

Psychological Benefits
  • Product Feature Rational
    Psychological Benefit Benefit
  • Computer Bubble Memory cannot lose work Job
    Safety / Security
  • Banking High Yield IRA Make High Return
  • / 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

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

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

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

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

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

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

Brand Extensions
  • Brand Extensions are successful when-
  • Transferability of skills and competencies to new
  • 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

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

Global Branding
  • Segmenting, Targetting, Positioining, HOW ?
  • Global, Local or Glocal ?
  • Thematic Brands can easily be tailored for the
  • 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 ?

Brand Equity in Aakers conception
Brand Awareness
Brand Associations
Brand Equity
Brand Loyalty
Perceived Quality
Other Proprietary Assets
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

Personality and Self Concept
  • Self Image
  • Perceived self image through others
  • Ideal Image
  • Aspirational Image
  • Brand Image

Basis for Segmentation
  • Geographic
  • Demographic
  • Psychographic
  • Behavioural

Positioning Nuances
  • Under Positioning
  • Over Positioning
  • Confused Positioning
  • Doubtful Positioning
  • Positioning is always done on the central idea of

Positioning Styles, Fashions and Fads
  • Page 305 kotler

  • Other Peoples minds are a wretched place to be
  • 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

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

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
  • 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
  • consumers, pertaining to any product/product

Branding and Attributes
  • Brand Image to be created has to be around
    certain attributes consumers would prefer to
  • 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 ?

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
  • Branding needs to bring closer the two images

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

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

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

  • Thank You Brands