14/01/2017

ESC RENNES SCHOOL OF BUSINESS

NEW PRODUCTS
AND
BRAND MANAGEMENT (MK442E)

LECTURE-1: BRAND FUNDAMENTALS

12/Jan/2017

Assist. Prof. Pradeep DIVAKARAN

(Course Co-ordinator)
Office 323, Department of Marketing

Email: pradeep.divakaran@esc-rennes.com

ESC RENNES SCHOOL OF BUSINESS Lecture-1: Branding Fundamentals,

AGENDA
TOPICS OF TODAYS TALK
Introduction - Course module
Course contents and Module plan
Evaluation Methods
Group presentations

Guidelines for lecture sessions

Power Point Slides print & upload
Questions and Suggestions
Email and Appointments, Attendance Register

Todays lecture-1

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ESC RENNES SCHOOL OF BUSINESS Lecture-1: Branding Fundamentals,

TODAYS SESSION
BRAND FUNDAMENTALS AND CREATING BRAND EQUITY
What is a brand?

Why they matter? Types? What can be branded?

How does branding work?

What is brand equity?

How is brand equity built, measured, and managed?

Group selection/formation

BREAKS???

ESC RENNES SCHOOL OF BUSINESS Lecture-1: Branding Fundamentals,

BOOKS AND LITERATURES

(REFER COURSE MODULE OUTLINE)

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ESC RENNES SCHOOL OF BUSINESS Lecture-1: Branding Fundamentals,

TEST OF YOUR KNOWLEDGE

Have you seen this ad before?

What is the product in the ad?

What is the brand name in the ad?

Identify some of the brand elements

Can you name a competitor?

ESC RENNES SCHOOL OF BUSINESS Lecture-1: Branding Fundamentals,

WHAT IS A BRAND?
A brand is a
name, term, sign, symbol or design, or a combination of
them, (Brand elements)
intended to identify the goods or services of one seller or
group of sellers and
to differentiate them from those of competitors.

Marketer-most distinctive skill

Create, maintain, enhance and protect brands

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ESC RENNES SCHOOL OF BUSINESS Lecture-1: Branding Fundamentals,

WHAT IS A BRAND? (CONTD)

Many practicing managers refer to a brand as more

than that as something that has actually created a
certain amount of awareness, reputation,
prominence, and so on in the marketplace

ESC RENNES SCHOOL OF BUSINESS Lecture-1: Branding Fundamentals,

BRAND ELEMENTS
Brand elements
Trademarkable devices
Brand
Identify & differentiate
brand names URLs

Strong brands Slogans

mostly have multiple
Elements
Logos
elements

Symbols. E.g. The rock of Characters

Symbols
Gibraltar for Prudential
Insurance

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ESC RENNES SCHOOL OF BUSINESS Lecture-1: Branding Fundamentals,

BRAND ELEMENT CHOICE CRITERIA

Memorable Transferable
Meaningful Adaptable
Likeability Protectable

ESC RENNES SCHOOL OF BUSINESS Lecture-1: Branding Fundamentals,

SLOGANSDO YOU RECOGNIZE?

Like a good neighbor, State Farm is there

Just do it

Nothing runs like a Deere

We try harder

Im lovin it

Imagination at work

Impossible is Nothing

Because Youre worth it

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ESC RENNES SCHOOL OF BUSINESS Lecture-1: Branding Fundamentals,

BRANDS VS. PRODUCTS

A product is anything we can offer to a market for attention,
acquisition, use, or consumption that might satisfy a need or
want.
A product may be a physical good, a service, a retail outlet, a
person, an organization, a place, or even an idea.
Different Product levels: Core benefit level, generic product level,
expected product level, augmented product level, potential
product level
A brand is more than a product, as it can have dimensions that
differentiate it in some way from other products designed to
satisfy the same need.
Brand psychological associations/responses
Product physiological associations/responses

ESC RENNES SCHOOL OF BUSINESS Lecture-1: Branding Fundamentals,

BRANDS VS. PRODUCTS

Brands create competitive advantages
with product performance (rational and tangible-brain);
other brands create competitive advantages through
non-product-related means (symbolic, emotional and
intangible-heart) such as customer-motivation, desires,
image associations, etc.
Firms MOST valuable assests?
Intangible assets like Management skills, Marketing,
Operations, financial, BRANDS.

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ESC RENNES SCHOOL OF BUSINESS Lecture-1: Branding Fundamentals,

BRANDS VS. PRODUCTS

Coca colas branding lesson
Pepsi Challenge
Cokes taste tests 190,000
Consumer reaction
Old Cola drinkers of America
Coca-Cola Classic &New Coke
Lessons American Icon, nostalgia, heritage &
relationship with consumers
Psychological response as important as Physio.
response

ESC RENNES SCHOOL OF BUSINESS Lecture-1: Branding Fundamentals,

WHY BRANDS ARE IMPORTANT?

Two perspective Consumers and Firms
1. Consumers perspective
Consumers = Individuals or Organizations
Brand = consumers recognize and have knowledge
o No additional thought/info. processing for purchase
decisions
o Lower search cost- experience goods, credence goods
Meaning
o Relationship brand and consumer
o Trust and loyalty

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ESC RENNES SCHOOL OF BUSINESS Lecture-1: Branding Fundamentals,

WHY BRANDS ARE IMPORTANT?

1. CONSUMERS PERSPECTIVE (CONTD)

Satisfaction and repurchase

Symbolic
o To project their self-image
o Reflect different values and traits
o Associated with certain types of people

Communicate to others
Reduce risk
o Ability to simplify decision making and reduce risk

ESC RENNES SCHOOL OF BUSINESS Lecture-1: Branding Fundamentals,

WHY BRANDS ARE IMPORTANT?

1. CONSUMERS PERSPECTIVE (CONTD)
Consumers may perceive many different types of risks in buying
and consuming a product:
Functional riskThe product does not perform up to
expectations.
Physical riskThe product poses a threat to the physical well-
being or health of the user or others.
Financial riskThe product is not worth the price paid.
Social riskThe product results in embarrassment from others.
Psychological riskThe product affects the mental well-being
of the user.
Time riskThe failure of the product results in an opportunity
cost of finding another satisfactory product.

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ESC RENNES SCHOOL OF BUSINESS Lecture-1: Branding Fundamentals,

THE ROLE OF BRANDS

2. FIRM PERSPECTIVE
Identify the maker
Consumer can identify identical products differently
depending on how they are branded

Simplify product handling

To organize & simplify inventory & accounting records

Offer legal protection

To its unique features or aspects
Brand name protected registered trademarks

ESC RENNES SCHOOL OF BUSINESS Lecture-1: Branding Fundamentals,

THE ROLE OF BRANDS (CONTD)

2. FIRM PERSPECTIVE
Signal quality -
Satisfied customer purchase again

Create barriers to entry -

By providing predictability & security of demand
Sustained future revenues to owner

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ESC RENNES SCHOOL OF BUSINESS Lecture-1: Branding Fundamentals,

THE ROLE OF BRANDS (CONTD)

2. FIRM PERSPECTIVE
Serve as a competitive advantage
Unlike manufacturing & design processes, difficult to match
the lasting impression left by brands

Secure price premium

Loyalty turns to higher willingness to pay
20% to 25% more than competitor brand
Mergers and acquisitions
Extremely difficult and expensive to create similar brands from
scratch

ESC RENNES SCHOOL OF BUSINESS Lecture-1: Branding Fundamentals,

WHAT IS BRANDING?
Branding is endowing products and services with
the power of the brand.
Its about creating differences between products
Giving the product an Identity
By giving it a name and other brand elements
Creates mental structures
Helps to organize consumers knowledge about products &
services
Clarifies decision making (during choice situations)&
eventually provides value to firm

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ESC RENNES SCHOOL OF BUSINESS Lecture-1: Branding Fundamentals,

WHAT IS BRANDED?
Physical goods
Services
Retailers and distributors
Online products and services
People and organizations
Sports, arts, and entertainment
Geographic locations
Ideas and causes

ESC RENNES SCHOOL OF BUSINESS Lecture-1: Branding Fundamentals,

CAN EVERYTHING BE BRANDED?

Ultimately a brand is something that resides in the
minds of consumers.

The key to branding is that consumers perceive

differences among brands in a product category.

Even commodities can be branded:

Coffee (Maxwell House), bath soap (Ivory), flour (Gold Medal),
beer (Budweiser), salt (Morton), oatmeal (Quaker), pickles
(Vlasic), bananas (Chiquita), chickens (Perdue), pineapples
(Dole), and even water (Perrier)

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ESC RENNES SCHOOL OF BUSINESS Lecture-1: Branding Fundamentals,

BRANDING COMMODITIES
Commodity- so basic that it cannot be physically
differentiated from competitors in customers mind
BUT due to branding/strong brands, even
commodities are highly differentiated
Key success factors consumers convinced that
meaningful differences existed in product offerings
within a category
Brand ensures high quality within a product category
Or, due to brand image from non-product related
factors

ESC RENNES SCHOOL OF BUSINESS Lecture-1: Branding Fundamentals,

SERVICE BRANDING
Examples:
Banks, airlines, hotel, consultants, courier
Challenges
1. Less tangible
2. Likely to vary in quality depends on particular
person/people
3. To address branding is important
Branding help make abstract nature of services
more concrete
Helps to identify & to provide meaning to different
services

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ESC RENNES SCHOOL OF BUSINESS Lecture-1: Branding Fundamentals,

SERVICE BRANDING

Professional Services (B2B)

Examples: Accenture (consulting), Goldman Sachs (Investment
banking), Ernst & Young ( Accounting), Baker Bolts (Law)
Provide expertise & support
1. Corporate credibility expertise, trustworthiness, likeability, etc.
2. Long term relationship
3. Individual employees as brands retaining them
4. Referrals & testimonials
5. Emotions, switching costs - pose barriers to entry for comp

ESC RENNES SCHOOL OF BUSINESS Lecture-1: Branding Fundamentals,

BRANDING STRATEGIES
For successful branding STRATEGIES & brand value CREATION
Consumers MUST be convinced that there are meaningful
differences among brands

Brand differences are often related to attributes or benefits of

product itself

A Marketer- can apply Branding to;

Virtually anywhere a consumer has a choice

Physical good, a service, a Store, a person
a place, as organization or an idea.

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ESC RENNES SCHOOL OF BUSINESS Lecture-1: Branding Fundamentals,

BRAND EXTENSIONS
Advantages of Brand extensions
Improved odds of new product
success
Positive feedback effects

Disadvantages of Brand extensions

Brand dilution
Harm the brand image of the parent brand
Cannibalization

ESC RENNES SCHOOL OF BUSINESS Lecture-1: Branding Fundamentals,

BRAND PORTFOLIOS
Brand portfolio
Set of all brands & brand lines a firm has to offer for sale in a
particular category or segment

Reasons for Brand Portfolios

Increasing shelf presence and retailer dependence in the store
Attracting consumers seeking variety
Increasing internal competition within the firm
Yielding economies of scale in advertising, sales, merchandising, and
distribution

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ESC RENNES SCHOOL OF BUSINESS Lecture-1: Branding Fundamentals,

DEVISING A BRANDING STRATEGY

When a firm introduces a new product, it has 3
choices
1. Develop new brand elements
2. Apply existing brand elements
3. Use a combination of old and new

ESC RENNES SCHOOL OF BUSINESS Lecture-1: Branding Fundamentals,

BRANDING TERMS
Brand line Line extension
Brand mix Category extension
Brand extension Branded variants
Sub-brand Licensed product
Parent brand Brand dilution
Family brand Brand portfolio

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ESC RENNES SCHOOL OF BUSINESS Lecture-1: Branding Fundamentals,

IMPORTANCE OF BRAND MANAGEMENT

The bottom line is that any brandno matter how

strong at one point in timeis vulnerable, and
susceptible to poor brand management.

ESC RENNES SCHOOL OF BUSINESS Lecture-1: Branding Fundamentals,

TOP TEN GLOBAL BRANDS (BUSINESS WEEK)

Source: http://www.businessweek.com/interactive_reports/best_global_brands_2009.html

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ESC RENNES SCHOOL OF BUSINESS Lecture-1: Branding Fundamentals,

BRANDING CHALLENGES AND

OPPORTUNITIES
Difficult to persuade with traditional communications
Needs and wants changed
Host of new products under their brand umbrella
All of these complicates the decisions that marketers have to
make
Emergence of interactive and non-interactive media
Non-traditional form of communication
Sports and events sponsorships, in-store ads
Mini-bilboards, product placements in movies

ESC RENNES SCHOOL OF BUSINESS Lecture-1: Branding Fundamentals,

BRANDING CHALLENGES AND

OPPORTUNITIES
Savvy customers
Brand proliferation
Media fragmentation
Increased competition
Globalization, generics, B. ext., de-regulations
Increased costs
Greater accountability
Pressure to meet short-term targets at the expense of long-
term goals
Rapid job turnover and promotions

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ESC RENNES SCHOOL OF BUSINESS Lecture-1: Branding Fundamentals,

WHAT IS BRAND EQUITY?

Brand equity
is the added value endowed on products and
services,

which may be reflected in the way consumers, think,

feel, and act with respect to the brand

As well as in the prices, market share & profitability the

brand commands for the firm

ESC RENNES SCHOOL OF BUSINESS Lecture-1: Branding Fundamentals,

TO STUDY BRAND EQUITY

Marketers and researchers use various perspectives to

study brand equity
Customer level, Product level, Firm level

Customer level - as individual or an organization

The power of brand lies in what customers have seen,
read, heard, learned, thought & felt about the brand
over time

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ESC RENNES SCHOOL OF BUSINESS Lecture-1: Branding Fundamentals,

STRATEGIC BRAND MANAGEMENT

It involves the design and implementation of
marketing programs and activities to build, measure,
and manage brand equity.

Steps in Strategic Brand Management

1. Identifying and establishing brand positioning

2. Planning and implementing brand marketing

3. Measuring and interpreting brand performance

4. Growing and sustaining brand value

ESC RENNES SCHOOL OF BUSINESS Lecture-1: Branding Fundamentals,

STRATEGIC BRAND MANAGEMENT PROCESS

(ENTIRE KELLER BOOK IS ABOUT THIS)

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ESC RENNES SCHOOL OF BUSINESS Lecture-1: Branding Fundamentals,

GROUP-SELECTION
8 GROUPS
Selection random process
Helps to develop team-skills, especially to work with
cross-cultural teams like in real world (also outside
your comfort zones)
Select one B2C and one B2B brand/firm
No changes in group/topics allowed.

ESC RENNES SCHOOL OF BUSINESS Lecture-1: Branding Fundamentals,

END OF LECTURE-1

THANKS OF FOR YOUR ATTENTION

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