brand

Everyone is familiar with brands, if nothing else just from looking at adverts and everyday shopping. From a marketing perspective the brand is more complex than it might at first seem. The brand works at a different levels conveying information about what is on offer, who the product is meant for and what the product says about the buyer.

Brands encapsulate a whole range of communication, learning, history, feeling about a product or company within a simple name and logo. But although the name may be simple, the ideas underpinning brands and the different ways in which brands are used are both complex and multifaceted.
The brand pyramid The concept of a brand can be thought of as a pyramid consisting of different layers of meaning and involvement.

At its lowest level a brand is simply an identifying mark to distinguish the product from alternatives. Normally, at this simple level, there is an implicit statement of specification. A4 paper consists of paper of a certain size. Low fat yoghurt consists of yoghurt with a maximum level of fat content. At the next level, the brand becomes more than a mark of specification, it becomes a mark of assurance. Food marked Nestl will achieve a minimum standard of quality. Cars made by Ford will have a certain level of reliability. Moving in up another step, the brand starts to represent moments of choice. Drink Coke when you are thirsty. Eat Mars when you need energy. If the brand becomes associated with a choice (in the consideration set), then it is more likely to be purchased. But successful brands can position themselves to become the only choice. Achooo - pass me a Kleenex. At the next step, the brand provides a mark of association, a badge of a club that the individual wants to be associated with. Here the purchaser is starting to make some form of emotional connection with the brand and to use the brand to establish a self-image to other people. I am in the Apple user club. I wear Nike. I read the Financial Times. Brands as relationships We can also view the brand as a relationship. Ultimately the brand reflects a relationship between the buyer and the product bought (and so indirectly with the supplier). This relationship like all others is based on trust, the fulfilment of promises and common values. This brand will deliver these features and these emotional benefits to you.

Over time the brand relationship changes as needs change. Buyers can become promiscuous, change interests, become bored with their habits. Brands on the other hand can stagnate and wither, or become focused on new customers, or change in their essence. The brand relationship is fragile. A single event, such as contamination (eg Perrier) or a misplaced word (eg Ratners) can irreparably damage this trust. However, brands can also suffer chronic damage over time constant failure to deliver on promises, failure to be reliable, failure to deliver on specification diminish and destroy brand value. As an example, the under-performance of Virgin Trains threatens the entire perceptions of the Virgin brand. There are cases where companies have focused purely on the brand's imagery and completely overlooked the implicit specification and assurance aspects of a brand which rely on basic quality and meeting the implicit service promises (Boo.com is an example). This means that companies should also see the way they deal with distribution channels as part of brand management to ensure that the brand is not compromised on its journey to the customer. Not surprisingly, brand-focused companies spend a great deal of effort nurturing and developing their brands to maintain their status, value and relevance to the relevant target audience over the long term. In these days of constant innovation and constant newness searching for a better product, it's worth recognising that the strongest brands have been selling the same product for more than one hundred years (Coke, Kelloggs Corn Flakes, Guinness, Wrigleys, ...) through marketing, rather than product innovation. If you then increase this association with the brand to a point ofemotional involvement, then the brand starts to represent who the individual wants to be. "The brand is me. This is my brand". One person may say I drink Gordon's Gin, wear Burberry. I am that type of person. Another, I shop in Bodyshop, buy organic food. I am that type of person.

Brand Attributes
Brand Attributes portray a companys brand characteristics. They signify the basic nature of brand. Brand attributes are a bundle of features that highlight the physical and personality aspects of the brand. Attributes are developed through images, actions, or presumptions. Brand attributes help in creating brand identity. A strong brand must have following attributes: 1. Relevancy- A strong brand must be relevant. It must meet peoples expectations and should perform the way they want it to. A good job must be done to persuade consumers to buy the product; else inspite of your product being unique, people will not buy it. Consistency- A consistent brand signifies what the brand stands for and builds customers trust in brand. A consistent brand is where the company communicates message in a way that does not deviate from the core brand proposition. Proper positioning- A strong brand should be positioned so that it makes a place in target audience mind and they prefer it over other brands. Sustainable- A strong brand makes a business competitive. A sustainable brand drives an organization towards innovation and success. Example of sustainable brand is Marks and Spencers. Credibility- A strong brand should do what it promises. The way you communicate your brand to the audience/ customers should be realistic. It should not fail to deliver what it promises. Do not exaggerate as customers want to believe in the promises you make to them. Inspirational- A strong brand should transcend/ inspire the category it is famous for. For example- Nike transcendent Jersey Polo Shirt. Uniqueness- A strong brand should be different and unique. It should set you apart from other competitors in market. Appealing- A strong brand should be attractive. Customers should be attracted by the promise you make and by the value you deliver.

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Brand equity and brand value

In a market where products are similar, branding can have a large effect on the price that customers will pay. Brands therefore add value to a basic product or service by enabling the product or service to command a higher price, or higher market share than an unbranded equivalent. The term Brand equity is used to describe both the value of the brand and the brand's component values. It's value may be a monetary value (which may be discounted to a net present value), an increase in a rate of return or any number of softer market research measures such as awarenss or consideration.

Measurement
There are many ways to measure a brand. Some measurements approaches are at the firm level, some at the product level, and still others are at the consumer level. Firm Level: Firm level approaches measure the brand as a financial asset. In short, a calculation is made regarding how much the brand is worth as an intangible assets. For example, if you were to take the value of the firm, as derived by its market capitalization - and then subtract tangible assets and "measurable" intangible assets- the residual would be the brand equity. One high profile firm level approach is by the consulting firm Interbrand. To do its calculation, Interbrand estimates brand value on the basis of projected profits discounted to a present value. The discount rate is a subjective rate determined by Interbrand and Wall Street equity specialists and reflects the risk profile, market leadership, stability and global reach of the brand
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Product Level: The classic product level brand measurement example is to compare the price of a no-name or private label product to an "equivalent" branded product. The difference in price, assuming all things equal, is due to the brand. More recently a revenue premium approach has been advocated . Consumer Level: This approach seeks to map the mind of the consumer to find out what associations with the brand the consumer has. This approach seeks to measure the awareness (recall and recognition) and brand image (the overall associations that the brand has). Free association tests and projective techniques are commonly used to uncover the tangible and intangible attributes, attitudes, and intentions about a brand. Brands with high levels of awareness and strong, favorable and unique associations are high equity brands. All of these calculations are, at best, approximations. A more complete understanding of the brand can occur if multiple measures are used.

Examples
In the early 2000s in North America, the Ford Motor Company made a strategic decision to brand all new or redesigned cars with names starting with "F". This aligned with the previous tradition of naming all sport utility vehicles since the Ford Explorer with the letter "E". The Toronto Star quoted an analyst who warned that changing the name of the well known Windstar to the Freestar would cause confusion and discard brand equity built up, while a marketing manager believed that a name change would highlight the new redesign. The aging Taurus, which became one of the most significant cars in American auto history, would be abandoned in favor of three entirely new names, all starting with "F", the Five Hundred, Freestar and Fusion. By 2007, the Freestar was discontinued without a replacement. The Five Hundred name was thrown out and Taurus was brought back for the next generation of that car in a surprise

move by Alan Mulally. "Five Hundred" was recognized by less than half of most people, but an overwhelming majority was familiar with the "Ford Taurus".

The Brand Equity Pyramid

A Conceptual and Measurement Model

Prefer holding price and feature constant

Brand Equity

Price premium the brand commands

Customer Loyalty Purchase/Investment Interest Brand Image

Awareness/Familiarity

Brand Identity - Definition and Concept

Brand identity stems from an organization, i.e., an organization is responsible for creating a distinguished product with unique characteristics. It is how an organization seeks to identify itself. It represents how an organization wants to be perceived in the market. An organization communicates its identity to the consumers through its branding and marketing strategies. A brand is unique due to its identity. Brand identity includes following elements - Brand vision, brand culture, positioning, personality, relationships, and presentations.

Brand identity is a bundle of mental and functional associations with the brand. Associations are not reasons-to-buy but provide familiarity and differentiation thats not replicable getting it. These associations can include signature tune(for example - Britannia ting-ting-ta-ding), trademark colours (for example - Blue colour with Pepsi), logo (for example - Nike), tagline (for example - Apples tagline is Think different),etc. Brand identity is the total proposal/promise that an organization makes to consumers. The brand can be perceived as a product, a personality, a set of values, and a position it occupies in consumers minds. Brand identity is all that an organization wants the brand to be considered as. It is a feature linked with a specific company, product, service or individual. It is a way of externally expressing a brand to the world. Brand identity is the noticeable elements of a brand (for instance - Trademark colour, logo, name, symbol) that identify and differentiates a brand in target audience mind. It is a crucial means to grow your companys brand.

Brand identity is the aggregation of what all you (i.e. an organization) do. It is an organizations mission, personality, promise to the consumers and competitive advantages. It includes the thinking, feelings and expectations of the target market/consumers. It is a means of identifying and distinguishing an organization from another. An organization having unique brand identity have improved brand awareness, motivated team of employees who feel proud working in a well branded organization, active buyers, and corporate style. Brand identity leads to brand loyalty, brand preference, high credibility, good prices and good financial returns. It helps the organization to express to the customers and the target market the kind of organization it is. It assures the customers again that you are who you say you are. It establishes an immediate connection between the organization and consumers. Brand identity should be sustainable. It is crucial so that the consumers instantly correlate with your product/service. Brand identity should be futuristic, i.e, it should reveal the associations aspired for the brand. It should reflect the durable qualities of a brand. Brand identity is a basic means of consumer recognition and represents the brands distinction from its competitors.

Types of brand
Private label Private label products or services are typically those manufactured or provided by one company for offer under another company's brand. Private label goods and services are available in a wide range of industries from food to cosmetics to web hosting. They are often positioned as lower cost alternatives to regional, national or international brands, although recently some private label brands have been positioned as "premium" brands to compete with existing "name" brands.

Big Bazaar: Private label push

Byravee Iyer / Mumbai December 1, 2009, 20:00 IST

Big Bazaar, the hypermarket of Pantaloon Retail, has come out with a breakfast cereal range under its private label, Tasty Treat. Big Bazaar already sells noodles, pasta, vermicelli, soups, namkeens, chips, toast, khari, papads, jams, pickles, carbonated drinks, ketchup and fruit beverages under the brand. It has now added breakfast cereals to the range. The breakfast cereals will be available in three variants plain cornflakes, chocolate-flavoured Choco Gols and honey-flavoured Honey Circles. There are two reasons for launching the product, says Pantaloon Retails head of private brands, Devendra Chawla. One is that private brands give us far higher margins, and the second is that cornflakes as a category is underpenetrated and has a lot of scope to grow. The market for breakfast cereals is still small. While the packaged food market is valued at Rs 33,234 crore, the organised breakfast cereal market is just Rs 250 crore less than one per cent. But the market is growing fast, given the growing health consciousness in the country, especially the urban middle class. Kelloggs monopolises the market for breakfast cereals with its range of flakes. Some other multinational players have also shown keen interest in this market. PepsiCo has already entered with its bestseller brand, Quaker Oates. Heinz India, which has a hugely strong bond with households because of its Complan health drinks, too has joined the bandwagon.

In spite of the presence of a large number of players in the branded packaged food segment, Tasty Treat is growing at about 70 per cent. This perhaps has given Big Bazaar the confidence to try its luck in breakfast cereals as well. In a recent development, Pantaloon Retail, promoted by Kishore Biyani, has boycotted Kelloggs at all its retail formats for turning down its demand for higher margins. Not surprisingly, Big Bazaar is pushing its own brand of cornflakes now. This is not the first time Big Bazaar is doing this. A while back Cadburys and PepsiCo owned snack food brand Frito Lay had to bear the brunt.