Brand Management

What is a BRAND??
A BRAND is a name, term, sign, symbol, or design which is intended to identify the goods or services of one seller or group of sellers and to differentiate them from those of competitors. A name becomes a brand when consumers associate that name with a set of tangible and intangible benefits that they obtain from the product or service It is the sellers promise to deliver the same bundle of benefits/services consistently to buyers

Brand
BRAND ATTITUDE Feel positively disposed towards the brand BRAND PREFERENCE Buy the brand more than other brands in the category BRAND LOYALTY Continue to buy the brand over long periods of time BRAND AWARENESS The recognition and recall of a brand and its differentiation from other brands in the same category BRAND IMAGE The ideas and feelings associated with a brand BRAND EQUITY (STRENGTH) The control on purchase exerted by a brand and, by virtue of this, the brand as an asset that can be exploited to produce revenue

Brand Management
Developing Brand Vision Establishing Brand Position Fulfilling Brand Contract Communicating Brand Position Measuring RoBI

Brand Vision
A clear articulation of the strategic, financial, and brand goals that management has created for the brand A first step to strategic screens as to where the brand can and cannot go Brand Vision Provides a vision that forces management to articulate what they want the brand for the organization over the next five years, relative to brand value, revenue, and profit contributions

Brand Positioning
A brand's positioning is the place in consumers' minds that you want your brand to ownthe benefit you want them to think of when they think of your brand A strong brand position means the brand has a unique, credible, sustainable, and valued place in customers' minds. Good positioning gives you the direction required to focus the organization and focus your strategic efforts A good positioning is a single idea to be communicated to your customers. It revolves around a benefit that helps your product or service stand apart from the competition

Benefits of Branding
Easy for the seller to track down problems and process orders Provide legal protection of unique product features Branding gives an opportunity to attract loyal and profitable set of customers It helps to give a product category at different segments, having separate bundle of benefits It helps build corporate image It minimises harm to company reputation if the brand fails

Amul TATA Accenture Intel M&M SONY Apple Enfield

Purity Trust Performance Speed Low Price/Utility Best Quality Innovation Macho Image

A well-crafted brand positioning has three primary components

A definition of the target market you wish to pursue A definition of the business your company is in or the industry or category it competes in A statement of your point of difference and key benefits.

Effective Positioning
Fit : Seek to leverage strengths of existing brand position Value : Focus on the perceived benefits that customers value, as determined by the customer model Uniqueness : Go where the competitors are not. Sustainability: Maximize the length of time this positioning can be owned within the competitive set Credibility : Get a credible fit between who you are and the supplier predicated by the customer model.

BRAND CONTRACT
A Brand Contract is a list of all promises the brand makes to customers. Such a contract is executed internally, but it is defined and validated externally by the marketplace. Brand Contracts can and should change over time. New promises can be added, other promises can be updated, and irrelevant promises can be deleted.

A Brand Contract is a critical piece of the brand position because it helps to further define marketplace perceptions and expectations and forces managers to be honest with themselves.
In addition to positive promises to customers, a Brand Contract can contain negative promises or attributes. It is important to build on the strong brand promises and mitigate the negative one.

BARISTA's Implicit Brand Contract

Provide the highest quality coffee available on the market today Offer customers a wide variety of coffee options as well as complementary food and beverage items Have an atmosphere that is warm, friendly, homelike, and appropriate for having a conversation with a good friend or reading a book Recognize that visiting Starbucks is as much about the experience of drinking coffee as it is about the coffee itself

Successful Brand-Based Communications

Use all communication strategies to help achieve your corporate strategy and brand vision. Let your brand positioning largely determine the right communications strategy to execute. Use an integrated marketing communications strategy to get maximum return from all dollar investments.

Metrics to Measure Return on Brand Investment

Brand name knowledge, awareness, recognition, recall : measures
strength of the brand as reflected by customer's ability to identify the brand under varying conditions Contract fulfillment : measures the degree to which your brand is upholding its Brand Contract Acquired customers : counts customers claiming they have come to your company based on the strength of the brand Customer loyalty : measures the degree to which customers continue to purchase your brand and how long that loyalty has lasted Financial value : reports the financial value of your brand in the marketplace Price premium : finds the percentage of price premium your brand is able to command over private-label brands, as well as key competitor brands

PRODUCT BRANDING STRATEGY

This type of brand give each individual product an exclusive brand name and the company name being ignored It allows the brand to have unique values, personality, identity and positioning. By doing so, it implies that every new product the company brings on to the market is a new brand and can be positioned precisely for a specific market segment

 It has the advantage of making it easier for the company to evaluate brand performance and worth and allows better resource-allocation decisions. The major drawbacks are product cannibalization if consumers cannot differentiate clearly among product brands and involves higher advertising and promotion budget and is totally selfsupporting with little or not brand name assistance or assurance from the parent.

PRODUCT-LINE BRANDING STRATEGY

Here, the products appear under the same brand name and possess the same basic identity but with slightly different competencies for example Follow Me line of hair shampoos. Here the brand line comes under the hair-care category but the different line extensions cover complementary applications of essentially the same product

 Advantages therefore are economies of scale in advertising and promotion and each new line extension strengthens the position of the brand and therefore its image. The line helps defend the category from predatory attack. Hence, individual product brands can move across to line brands as companies find ways of extending the brand to different consumer groups or segments.

PRODUCT- RANGE BRANDING STRATEGY

A number of products or services in a broad category are grouped together under one brand name and promoted with one basic identity. Compared to product-line branding, product-range branded products carry out the basically the same functions but at different performance levels like various cars in the Mercedes S, E, C and A class and Intels Pentium and Celeron ranges of microprocessors. Therefore the advantage here is that a single brand name allows some economies of scale in advertising and promotion as the products tend to carry the same overall brand values and positioning.

CORPORATE BRANDING STRATEGY

Two approaches in the Corporate brand exercises First is to promote its name as the main brand name sometimes referred to as monolithic or umbrella branding. Here the product is not branded individually or as strongly as the corporate brand. Companies using this approach IBM, Virgin, Sony. The basic principle is that the companies believed that the company name is the life of an enterprise.

 The second approach which is becoming popular whereby the product brand name has a high profile but is endorsed by the parent company which gives the product a stamp of quality and credibility. Here the product brand is self supporting in practically every respect but retains the assurance of the corporate brand endorsement. This type of corporate branding is also called house or endorsement branding. Nestle uses this approach to protect and guarantee the performance of their multitude products.

 Also suitable for companies engaged in service industries as their products are more intangible in nature. When consumers cannot see the products, the company name helps to give them an assurance of quality, heritage and authenticity

What is a brand?
A brand is a name, term, sign, symbol, design or a combination of the above to identify the goods or service of a seller and differentiate it from the rest of the competitors

A brand comprises of
Tangible attributes Product Packaging Labeling Attributes Functional benefits Intangible attributes Quality Emotional benefits Values Culture Image

Brand Identity
It is the marketers promise to give a set of features, benefits and services consistently

Brand Building
Involves all the activities that are necessary to nurture a brand into a healthy cash flow stream after launch

What kind of activities?

Eg. Product development Packaging Advertising Promotion Sales and distribution

Brand Equity
When a commodity becomes a brand, it is said to have equity What is brand equity? The premium it can command in the market Difference between the perceived value and the intrinsic value

What happens when equity increases?

Commodity

Brand

Power Brands Presence

+
Personality

What happens when brands have high equity?

The company can have more leverage with the trade The company can charge a premium on their product The company can have more brand extensions The company can have some defense against price competition

Brand Loyalty Pyramid

1 1 1 Committed buyer

Likes the brand. Considers it a friend Satisfied buyer. Would incur costs to switch Satisfied buyer/no reason to change Switchers/Price sensitive

How does one build brands?

Distinguishing it from others value proposition Brand promise must match brand delivery

The value proposition

Broad positioning Specific positioning Value positioning

Creating the brand

Choosing a brand name Develop rich associations and promises Managing customer brand contact to meet and exceed expectations

Considerations in choosing a brand name

What does the brand name mean? What associations / performance / expectations does it evoke ? What degree of preference does it create?

A brand name should indicate

Product benefits Product quality Names easy to remember, recognize, pronounce Product category Distinctiveness Should not indicate poor meanings in other markets or languages

Brand Associations
owned word Slogans Colours Symbols and logos

Brand Status
E S T E E M Step up advertising Cash Cow.Need to Sustain brand building activities

New Product Or Product should be phased out

Troubled brand Product upgradation required

FAMILIARITY

Brand Ambassadors
Giving a face and personality to the brand that is expected to be rubbed off from the brand ambassador

Brand Vitality
Differentiation in consumers need Differentiation relevant to consumers need

Brand Pitfalls Brand experience must match brand image Calls for managing every brand contact

Creating Brand Equity

Clarify your position Tell your story Bring it to life Start building brand before they buy Measure your efforts
Ask your customers Check your search rankings Monitor the social media conversation

Building Brand Equity

List the features and benefits of your product / service. A feature is an attribute a color, a configuration; a benefit is what that feature does for the customer. Determine which benefits are most important to each of your customer segments. Identify which benefits are emotional the most powerful brand strategies tap into emotions, even among business buyers. Look at the emotional benefits and boil them down to one thing that your customers should think of when they think of you. Thats what your brand should represent.

Brand Development

Brand Experience
Create Brand Experience
It doesnt just happen plan it create it Authenticity

Think about the customer experience first

Need to explore target markets perception of the product and benefits Should leave lasting image/ experience About matching what brand stands for & what consumer wants

Be obsessive about details of the experience Think of consumption situation than product

Brand Experience
Strive for holistic experience Profile & Track the experience
Is it sustainable?

Measure the experience Consider how desired customer experience changes over a period Dont forget the employee experience Be creative while creating experience Ego satisfying stories

Brand Elements
1. Memorable

Easily Recognized and Recalled

Descriptive, Persuasive, Fun & Engaging, Rich Imagery Within and Across Categories, Across Different Markets Flexible, Able to be Updated Legally & Protectable

2. Meaningful 3. Transferable 4. Adaptable

5. Protectable

Choice Criteria
Memorability - recognition, recall Meaningfulness - persuasive Likability - fun, visually pleasing Transferability - across products, borders Adaptability - flexible, updatable Protectability - legal, competitive

Naming Criteria
Descriptive - function (Japan Airlines) Compounds - combo (Redbull) Classical - Latin based (Meritor) Arbitrary - no apparent tie (Apple) Fanciful - coined (Avanade)

Brand Name
Short phrase that captures the spirit of positioning Provides guidance to all the activities of the brand Emotional modifier>> descriptive modifier>> Brand function McD Food, folks and Fun Nike Authentic Athletic Performance Disney Fun Family Entertainment Zee Cinema Movies Masti Magic Its should
Communicate the category and boundaries Simplify.. To make brand memorable Inspire Should stand out with a higher meaning

Brand Name
Expression of Heart and soul of brand Short 3-5 word phrases that capture the essence & spirit of brand positioning & values Creates a mental filter to screen out inappropriate marketing activities Communicate the category and boundaries Simplify.. To make brand memorable Inspire Should stand out with a higher meaning Aspects McDonalds Nike Disney Emotional Food Quality Fun Descriptive Folks Athletic Family Function Fun Performance Entertainment

Identity into image

Identity into Image

Loyalty chain

The Ten Brand Drivers

Product quality Leadership personification Interpersonal conduct Verbal identity system Visual identity system Sound identity system Technology standards Telephone standards Property standards Marketing and communications media and materials

Reinforcing brands
Brand equity is reinforced by marketing actions that consistently convey the MEANING of the brand to consumers in terms of BRAND AWARENESS and BRAND IMAGE. Reinforced marketing actions, along with product development, branding strategies etc. also help in keeping the brand meaning in terms of products, benefits and needs as well as in terms of product differentiation intact.

Reinforcing happens through

Maintaining brand consistency Protecting sources of brand equity Fortifying or Leveraging Fine-tuning the marketing support program.

 Maintaining brand consistency Protecting sources of brand equity Fortifying versus Leveraging

Brand Attributes
Brand attributes are the functional and emotional associations which are assigned to a brand by its customers and prospects. It can be either negative or positive, and can have different degrees of relevance and importance to different customer segments, markets and cultures. They are the basic elements for establishing a brand identity.

Brand Attributes: Examples

Accessible Approachable, friendly, helpful, sincere Collaborative, cooperative, unified Smart, resourceful, adept, capable Limitless, infinite, unfettered The New Midwest Practical, realistic, sensible Focused, thoughtful, passionate Hard-working, determined, resolute Surprising, bold, courageous Modest, prudent, unpretentious Lifelong Family Loyal, steadfast, spirited Accountable, conscientious, sensible Encouraging, supportive, hopeful

Brand Audit
A brand audit is a comprehensive and systematic examination of a brand It involves activities (both tangible and intangible) to assess the health of the brand, uncover its sources of equity and suggest ways to improve and leverage that equity. The brand audit requires the understanding of brand equity sources from the perspective of both the firm and the consumer.

Brand Essence
The brand essence is an articulation of the "heart and soul" of the brand. A brand essence is typical three to five short word phrases that capture the core essence or spirit of the brand positioning and the values characterizing the brand. The brand essence is the description which defines a brand and the guiding vision of the brand. Eg. caring shared (Hallmark)
fun family entertainment (Disney)

Sources of Differentiation
The brand stands for something important to the customer values align with the customers values reinforces the customers self image/how the customer aspires to be perceived can serve as a badge or other form of self-expression It possesses admirable qualities It provides unique or superior customer service It delivers a unique product purchase or usage experience It is entertaining It delivers superior performance It is venerated, has heritage (continuity, trustworthy leader, since ) It is the technology leader It has noble aims/values It tells an engaging story about itself Its founder has unique, admirable qualities It was first -- a pioneer -- in its market

Brand Promise
to meet expectations (though they strive to exceed them) of differentiated benefits that are unique, compelling and relevant they mean something to the customer that is kept at every point of customer contact that is impossible or very difficult for a competitor to keep that is iron-clad over time that delivers an aspect of social responsibility - 'Our' relationship helps others that is forged specifically with the customer - asking them exactly what they want and giving them exactly what they want to meet the changing needs of the customer (evolving along the way by identifying unmet needs and adjusting the offer)

Aligning Organizations & Brand Promises

Right Research-informed Promise Consensus Building Process Brand Promise Translated To Brand Identity Customer Touch-point Design Internal Communication And Education Employee Reward/Recognition System Culture That Aligns With The Intended Brand Personality Building Brand Measures Into Employees Measures Internal Surveys CEO Support

Corporate Branding
The CEO needs to lead the brand strategy work Build your own model as not every model suits all Involve your stakeholders including the customers Advance the corporate vision Exploit new technology Empower people to become brand ambassadors Create the right delivery system Communicate Measure the brand performance Adjust relentlessly & be ready to raise your own bar all the times

Brand Architecture
It describes how a family of brands relate to one another. It indicates how many levels of branding there are (hopefully, no more than two or three), which brands are at each level, which brands relate as brand/sub-brand, which relate as endorsed brand/endorsing brand and which remain independent of one another. It also addresses which brand's identity systems are dominant in different situations or contexts. And it addresses the type of names used at each level (coined, associative descriptive or generic descriptors).

Brand Architecture
Ideally, there are no more than two levels of hierarchy The system should be flexible enough to address all current and anticipated branding situations The dominant brand should be the one you most intend to build over time Sub-brands should be created sparingly, however they can be built to make the main or parent brand more relevant to new customer segments When an existing brand can be used, new brands should not be created Careful thought should be put into at what level taglines are used Many organizations have evolved to brand/sub-brand systems with some provision for flexibility and variation More and more organizations are trying to build and leverage their corporate, parent or organization brands as a way to save money when marketing products and services Brands that (a) are highly differentiated, (b) will be maintained for at least several years and (c) will be supported by significant marketing resources over time should have coined names

Have a nice day