Introduction to branding

1. Introduction to branding

2. Defining a brand “ A brand is a name, term, sign, symbol, logo or a combination of these that identifies the maker or the seller of a product” - American Marketing Association

3. What can be branded? • Physical goods • Services • Retailers and distributors • Online products and services • People and organizations • Sports, art and entertainment • Geographic locations • Ideas and causes

4. Benefits of branding to customers • Identification of source of product • Assignment of responsibility to product maker • Risk reducer • Search cost reducer • Promise, bond or pact with maker of product • Signal of quality

5. Benefits of branding to 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 unique associations • Source of competitive advantage • Source of financial returns

6. Brand Positioning • Define competitive frame of reference • Target market • Nature of competition • Define desired brand knowledge structures • Points-of-parity • Category associations (Dove) (Pears) • Competitive associations (designed to negate compt. POD) e.g. Sunfeast Yippee • Points-of-difference • strong, favorable, and unique brand associations • Through performance attributes and performance benefits (CNBC, Vicco turmeric cream, Panasonic A/C with ‘Econavi”)

7. Establishing Category Membership • Product descriptor (Jet Airlines, Indian Airlines) • Exemplar comparisons (comparing with an established brand) e.g: Himani Sona-chandi chyawanprash established category • Category benefits (Pepsodent)

8. Brand extensions

9. Brand extension • A brand extension occurs when a firm uses an established brand name to introduce a new product. • A Line Extension often adds a different flavor or ingredient variety, a different form or size. For example, Lay’s Classic salted and Lay’s Masala Magic • A Category Extension means applying the parent brand to enter a different product category. For example, Titan Fastrack watches, sunglasses and bags

10. When a new brand is combined with an existing brand, the extended new brand is called the sub-brand • While the main brand is called the Parent Brand • When the parent brand is already associated with many products, it is called family brand. • For example, in Asian paints Royale, Asian paints is the parent brand and Royale is the sub-brand

11. Advantages of Extensions • Extensions can potentially provide the following benefits to facilitate new product acceptance: - Improve brand image (Lifebuoy Plus) • Reduce risk perceived by customers & distributors • Increase probability of gaining distribution & trial • Increase efficiency of promotional expenditures • Reduce costs of introductory and follow-up mktg programs • Avoid cost (and risk) of developing new names (HUL) • Allow for packaging and labeling efficiencies (Vicks, Dettol, Maggi) • Permit consumer variety seeking (Lux)

12. Advantages of Extensions • Besides facilitating new product acceptance, extensions can also provide “feedback” benefits to the parent brand and the company as a whole • Enhance the parent brand image • Improve strength, favorability, and uniqueness of brand associations • Improve perceptions of company credibility • Convey broader brand meaning to consumers (Dettol) • Clarify core benefit proposition and business definition of the company • Bring new customers into the franchise and increase market coverage (Pantene) • Revitalize the brand (Lifebuoy) • Permit subsequent extensions

13. Extensions have risks, too. Certainly, they can fail. Can confuse or frustrate consumers ( Dettol Dishwash) Can encounter retailer resistance Can succeed but Cannibalize sales of the parent brand Can succeed but diminish identification with one category ( Virgin group of companies) Can fail and Hurt the image of the parent brand Can dilute brand meaning ( Medimix) Forego the chance to develop a new brand name or market the parent brand differently (opportunity cost) Disadvantages of Extensions

14. Extension Success and Failure Failure: • Rasna Spreadmaker • Lux Shampoo Success: • Dove shampoo

15. Brand equity

16. THE CONCEPT OF BRAND EQUITY • The brand equity concept stresses the importance of the brand in marketing strategies. • Brand equity relates to the fact that different outcomes result in the marketing of a product or service because of its brand name, as compared to if the same product or service did not have that name.

17. Creating brand equity • When you buy a brand, you are actually buying a belief. • Every brand signifies certain quality, performance, value and satisfaction • The value of a Brand can be increased by creating: • Strong • Favorable and • Unique brand associations

18. Product Placement

19. What is product placement? • An advertising technique used by companies to subtly promote their products through a non-traditional advertising technique, usually through appearances in film, television, or other media. • Product placements are often initiated through an agreement between a product manufacturer and the media company in which the media company receives economic benefits. A company will often pay a fee to have their product used, displayed, or significantly featured in a movie or show.

20. Brand equity

21. THE CONCEPT OF BRAND EQUITY • The brand equity concept stresses the importance of the brand in marketing strategies. • Brand equity relates to the fact that different outcomes result in the marketing of a product or service because of its brand name, as compared to if the same product or service did not have that name.

22. Creating brand equity • When you buy a brand, you are actually buying a belief. • Every brand signifies certain quality, performance, value and satisfaction • The value of a Brand can be increased by creating: • Strong • Favorable and • Unique brand associations

23. CUSTOMER BASED BRAND EQUITY • Building a strong brand according to CBBE involves a series of 4 steps as part of a “branding ladder” • A strong brand is also characterized by a logically constructed set of 6 brand “building blocks.” • Identifies areas of strength and weakness • Provides guidance to marketing activities

24. CUSTOMER-BASED BRAND EQUITY PYRAMID 4. BRAND RELATIONSHIPS = What about you & me? RESONANCE 3. BRAND RESPONSE = What about you? FEELINGS JUDGMENTS 2. BRAND MEANING = What are you? PERFORMANCE IMAGERY 1. BRAND IDENTITY = Who are you? SALIENCE

25. Salience Dimensions • Depth of brand awareness • Ease of recognition & recall (Thanda matlab…) • Strength & clarity of category membership • Breadth of brand awareness • Purchase consideration • Consumption consideration Tax-savings instruments

26. Performance Dimensions • Primary characteristics & supplementary features • Product reliability, durability, and serviceability • Service effectiveness, efficiency, and empathy • Style and design • Price

27. Imagery Dimensions • User profiles • Demographic & psychographic characteristics • Actual or aspirational • Group perceptions -- popularity • Purchase & usage situations • Type of channel, specific stores, ease of purchase • Time (day, week, month, year, etc.), location, and context of usage • Personality & values • Sincerity, excitement, competence, sophistication, & ruggedness • History, heritage, & experiences • Memories

28. Judgment Dimensions • Brand quality • Value • Satisfaction • Brand credibility • Expertise • Trustworthiness • Likability • Brand consideration • Relevance • Brand superiority • Differentiation

29. Feelings Dimensions • Warmth • Fun • Excitement • Security • Social approval • Self-respect

30. Resonance Dimensions • Behavioral loyalty • Frequency and amount of repeat purchases • Attitudinal attachment • Love brand (favorite possessions; “a little pleasure”) • Proud of brand • Sense of community • Kinship • Affiliation • Active engagement • Seek information • Join club • Visit web site, chat rooms