Managing Brands

Whats The Purpose Of Business

...To create a customer ...At a profit

Whats A Companys Most Valuable Asset?

The Loyalty of Its Customers

Brand Stock
Totality of all the impressions created by the buyer over time as he/she comes into contact with the brands products (or services), distribution channel, personnel and communication

Brands Make Business Sense

The value of a brand comes from its ability to gain an exclusive, positive and prominent meaning in the minds of a large number of consumers

Brands As Assets
Assured greater future income
Additional consumers Higher loyalty Greater frequency of purchase Premium

Estimating Brand Values

Market capitalisation - debt =Value of company Value of company - Replacement value of tangibles - other intangibles =Value of the brands
Brand value can be calculated as a percentage of the companys replacement value of tangible assets

Brands As Financial Assets

In effect, investors are putting a value above and beyond the capability of making or providing the underlying product or service

Brand Added Value

A number that represents the strength of the brands relationship with its buyers, independent of temporary fluctuations in its price or distribution

Brand Equity
Brand awareness + Image + Perceived quality Brand assets - Costs of branding - Cost of invested capital = Brand Equity (or Brand Financial Value)

+ Evocations
+ Familiarity, liking = Brand Assets (or Brand Added Value perceived by consumers

Worlds Most Valuable Brands

1. Coca Cola 2. Microsoft 3. IBM 4. GE 5. Nokia 6. Intel 7. Disney 8. Ford 9. McDonalds 10.AT&T 11. Marlboro 12. Mercedes 13. Citibank 14. Toyota 15. Hewlett-Packard 16. Cisco Systems 17. American Express 18. Gillette 19. Merill-Lynch 20. Sony

Brand Strategy Is Fundamental

The culmination of a process that involves concentrating all of a companys resources and all its functions only on one purpose Creating and sustaining a difference

Brand Strategy Evolution

Brand Identity Brand Personality Brand Image Brand Positioning USP

Brand Identity
The conception of brand identity was mentioned for the first time in Europe by Kapferer, 1986.

Brand Identity
The outward expression of a brand, including its name, trademark, communications, and visual appearance. Because the identity is assembled by the brand owner, it reflects how the owner wants the consumer to perceive the brand - and by extension the branded company, organization, product or service. This is in contrast to the brand image, which is a customer's mental picture of a brand. The brand owner will seek to bridge the gap between the brand image and the brand identity.

Brand Identity
Brand identity is what the owner wants to communicate to its potential consumers. However, over time, a product's brand identity may acquire (evolve), gaining new attributes from consumer perspective. Brand identity needs to focus on authentic qualities real characteristics of the value and brand promise being provided and sustained by organizational and/or production characteristics.

Inner and Outer Core of Brand Identity

I Core Identity: Contains the mission of the brand. (should remain unaltered). II Outer Core: Incorporates the product scope, users, personality, slogan, Symbol and extensions.

Brand Horlicks

Brand Identity-Horlicks
Core Identity: Nutrition and health Extended Identity

Product scope: Products that supplement nutritional needs. Personality: Protective, caring, supportive, concerned.

Brand Identity-Horlicks
Extensions: Horlicks, Horlicks Junior, Mothers Holicks, Foodles, Oats, Nutribar. Users: Family health drink for nutrition and health, children, to be mothers, old people, working people, house wives etc.

Brand Identity-Horlicks
Heritage: The company has been in the business of providing nourishment for decades. Slogan: The great family nourisher.

Brand Identity-Horlicks
Value Proposition: Helps one to perform his role better in life. Good health and living. Quality of life improvement.

Brand Identity-Dettol
I Core Identity: Protection against germs II Extended Identity:

Product Scope: Antiseptic, liquid, Plaster, soap, shaving cream Personality: Reliable, strong, trustworthy

Brand Identity-Dettol
Extension: Dettol soap, Dettol Liquid, Dettol Plaster, Dettol Extra, Dettol Shaving Cream User: Children, Young, adults, hygiene conscious, urban

Brand Identity-Dettol
Slogan: Dettol Protection Symbol: Dettol sword Smell: Unique Dettol smell

Brand Identity-Dettol
III Value Proposition: Effective germicidal, provides protection against possible harmful effects of germs, bacteria.

Feeling of security and protection.

Aaker definition
A sum total of brand associations that the brand strategist aims to create or maintain. These associations are representative of what the brand stands for and contains a promise to customers from the organizations members.

Dimensions of Brand Identity

Aakers Framework

Dimensions of Brand Identity

Brand as Product Brand as Organisation Brand as Person Brand as Symbol

Brand as Product
Product Scope Product Attributes

Quality/value
Uses

Users
Country of Origin

Brand as Organisation
Organisation Attributes (eg. Innovation, genuine, consumer concern, trustworthiness) Local Vs Global

Brand as Person
What happens to this brand when it becomes a person?

Personality (Energetic, rugged)

Brand Customer Relationships (Friend, advisor)

Brand as Symbol
Visual Imagery and metaphors Brand Heritage

Concept Of Brand Identity

The Kapferer Model

BRAND PRISM
picture of sender

Physique

Personality

Relationship

Culture

Reflection

Self-image

picture of receiver

internal

As per Kapferer, Brand identity can be defined by six parameters:

Personality, Culture & Self Image is an internal identity, which an organization looks at. The rest, Physique, Relationship and Reflection is an external identity, with respect to a consumer. 1. Personality a. Personification of brand b. What kind of person it would be, if it were a human being c. Examples: Confident, Social, Flamboyant, Arrogant, Energetic etc Kingfisher & Virgin Airlines brand personality may be that of flamboyant or rich. 2. Physique a. Mentions physical facets tangible things b. It will include packaging, product look and feel. c. Examples: Packaging color, product features etc Apple I-pod browsing physique will include its dial capabilities, the screen, and its connectivity with musical devices

Kapferer Brand Identity Prism

3. Culture a. Set of values feeding the brands inspiration b. Rules governing the brand in its outward signs like product and communication c. Examples: Indian, Western, Contemporary, Urban Kitchens of India takes its culture from the Indian cuisines made and packed for the consumers 4. Relationship a. Transactions between people b. Examples: Trust, Energy, Strong bonding Jet Airways Servicing their customers to the best

Kapferer Brand Identity Prism

5. Self-Image a. Through our attitude towards certain brands, we develop certain type of inner relationship with ourselves and image we want to project b. Which an organization wants its customers to perceive c. Example: Masculine, Progressive, Self Belief Parass Set Wet Gel targeted towards males have a self image of masculinity 6. Reflection a. What target consumer thinks & perceives the product to be b. Factor for strong and good brand image c. Companies should control the reflection and should try to make it better d. Example: Royal, Dynamic, Energetic, Confident Fastrack-Youthful

Physique
Basis of Brand/Salient features that spring to mind
Tangibles, action, appearance Coke: Bottle shape Mercedes: Marque, solid build quality

Personality
Unique humancharacter istics and traits
Often embodied by brand spokespeople (real or symbolic) Pepsi, Marlboro

Culture
From where the brand draws inspiration Its country-of-origin and values it stands for.
German Engineering for Mercedes Californian innovation for Apple Inspired by Nature-Dabur

Relationship
The basis of transaction and exchanges
Lovers
Mother child

Confidante

P&G-Thank You Mom

P&G-Thank You Mom

P&G-Thank You Mom

Procter & Gamble (NYSE:PG), a Worldwide Olympic Partner and the company behind brands such as Ariel/Tide, Pampers and Gillette, welcomed moms and families of London 2012 Olympians to the P&G Family Home in London, becoming the first Olympic sponsor to offer moms and families from around the world a home away from home at the Olympic Games. Designed to give Moms and families of Olympians from all corners of the globe a place to relax, unwind, and be together, the family home is available to the moms and families of all more than 10,000 Olympians around the world.

P&G-Thank You Mom

We asked athletes what we could do to support them here in London and they told us that Moms and families from around the world dont have a place to really relax and be together at the Games, said Marc Pritchard, P&Gs Global Brand Building Officer, We have been in the business of serving moms and families for 175 years. So it makes sense for us to celebrate the athletes by serving their moms and families.

A unique oral care brand for up-close situations

Unlike the typical opaque, mint-flavored toothpaste of the time, Close Up debuted in 1967 as a clear red gel with a spicy cinnamon taste and mouthwash right in the toothpaste. A unique brand identity was developed, with Close-Up positioned as the toothpaste that gives people confidence in very "up close and personal" situations. Couples with bright smiles in very "close" situations were featured on the packaging, and commercials depicted youthful adults. The idea of a toothpaste that could give them fresh breath, white teeth and, subsequently, a little extra self-confidence and attractive appeal provided instant appeal to consumers.

Reflection
What kind of people we perceive use it (outward mirror)
Young people

Show-offs
Outdoorsy

Self-Image
The relationship with ourselves /what the consumer thinks of himself.(internal mirror)
Socially responsible Attractive Different

Brand Prism-Pepsi

NIKE
picture of sender
swoosh

just do it

fiercely independent genius impatient

individualist

trailblazer

picture of receiver

internal

provoking coach

The power to surpass mortal limitations by liberating the dormant genius inside

spirit of never say die

REEBOK
picture of sender
clean cut well heeled

name

active

narcissus

healthy attractive

picture of receiver

internal

personal trainer

The joy to be among those feeling fit and looking good

fitness body worship

ADIDAS
picture of sender
name triad perfectionist extremely dependable performer espirit dcorps

comrades in arms

the relentless pursuit of perfection in sports

true sportsman

dedicated captain team player

picture of receiver

internal

The Essence Of Marlboro

A tribute to a mans authentic inner masculinity

Brands & Companies

Living The Brand

Corporate Branding
Creating positively loaded knowledge in the minds of all relevant target communities
In order to build trust in the company, its products, services and actions To differentiate it from its competitors

To promote supportive behaviour from all stakeholders towards the company

Importance Of Corporate Branding

Single most powerful management resource The only real sustainable competitive edge An enormous source of positive emotional energy from employees and associates A means to garner supportive behaviour

Elements of a Corporate Brand

Target Groups

Communication Content
Methods and modes

Target Groups
Direct
Customers, shareholders, employees Public and political domains Educational institutions

Mediating
Financial analysts, journalists and political lobbyists
They have a powerful influence on the targets

Indirect
Industry associates and competitors

Communication Content
Everything that the company does in every way communicates
Products, buildings, advertising, how it behaves with its staff and all those with whom it comes into contact

Therefore all elements have to be synergistic and there should be no inherent contradictions

Methods
Customer relations with the consumers
The product and/or service itself, its price, distribution etc. Advertising through-the-line

Relationship management with the mediating target communities

Lobbying PR

Internal communications with the company employees and close associates

Newsletter, get-togethers

The Facets Of A Company

A manufacturer of products, or deliverer of services A marketer of brands A commercial enterprise A corporate institution

A Manufacturer of Products
The company is known for its unique and innovative products
Gillette, Intel, Polaroid, Microsoft...

Marketer of Brands
The company is known by the brand it markets
Coca Cola, Adidas, Levis, Colgate...

A Commercial Enterprise
The company is known for its business success and profitability
GE, Reliance...

An Institution
The company is known for its vision and efforts to take society forward
Tata, Shell...

Product Level Communication

Purpose
Creating tangible differentiation and considered preference towards offering

Target
Customers, consumers (end-users), trade

Content
Product features

Brand Level Communication

Purpose
Supportive behaviour towards companys offering

Target
Customers, consumers (end-users), trade

Content
Brand essence (associated meanings & beliefs) Intangibles

Enterprise Level Communication

Purpose
To secure confidence in company as a sound business

Target
Investors, analysts, journalists

Content
Strength of financial, technological and human resources

Institution Level Communication

Purpose
To legitimise reason for existence beyond and above a commercial entity

Target
Citizens, media, government

Content
Corporate philosophy, vision Examples of socially relevant themes