Product and Brand Management: BY: Kedareswar Panda Faculty Marketing & Soft Skill

PRODUCT AND BRAND MANAGEMENT
BY: Kedareswar Panda Faculty Marketing & Soft Skill
New Product Development

New product development decision Process
Idea Generation
Idea Screening Is the product idea Compatible with Company Objectives, Strategies, And resources
Is the idea worth Considering?
Concept Development And Testing Can we find a good concept Consumer say They would try?
Marketing Strategy Development
Business Analysis
Product Development Have we got A technically and Commercially Sound product?
Market Testing Have product Sales met expectations/?
Commercialization Are product sales Meeting Expectations?
Can we find Cost-effective Affordable Marketing Strategy?
Will the Product meet Our profit Goal?
Yes
No
No
No
NO
No
No
Send the idea Back for Product Development?
Modify the Product or Marketing Program?
Yes
Drop
New Product development

1.
Idea Generation Marketing experts believe that greatest opportunities and highest leverage with new product are found by uncovering the best possible set of unmet customer needs or technological innovation Encouraged by open innovation movement, many firms are increasingly going outside the company to tap external resources.e.g. P&G connect-anddevelopment approach to innovation.

2.Idea screening In screening idea company must avoid two types of errors A DROP-error occurs when the company dismisses a good idea, it is extremely easy to find fault with other peoples ideas. A Go-error occurs when the company permits a poor idea to move into development and commercialization
The executive committee then reviews each idea against a set of criteria Does the product meet a need? Would it offer superior value? Can it be distinctively advertised? Does the company have the necessary know how and capital? Will the new product deliver the expected sales volume, sales growth and profit?

3. Concept development and testing Suppose a large food processing company gets the idea of producing a powder to add to milk to increase its nutritional value and taste A product idea can be developed into several concepts. concept 1- An instant breakfast drink for adults who want a quick nutritious breakfast without preparation. Concept 2-a tasty snack for children to drink as a midday refreshment Concept 3- a health supplement for older adults to drink in the late evening before they go to bed.
Each concept represents a category concepts that defines the product competition. An instant breakfast drink would compete against hot milk, cornflakes with cold milk, and other home made items. A tasty snack drink would compete against soft drinks, fruit juices, sports drinks, and other thirst quenchers.

3. Concept Testing It means presenting the product concept, symbolically or physically, to target consumers and getting their reactions. The more the tested concepts resembles the final product or experience, the more dependable concept testing is. Concept testing of prototypes can help to avoid costly mistakes, but it may be especially challenging with radically different, new- to-the- world products
Concept testing presents consumer with an elaborated version of concept Our product is powdered mixture added to milk to make an instant breakfast that gives the person all the days needed nutrition along with good taste and high convenience. The product comes in three flavors( chocolate, vanilla, and strawberry) and would come in individual packs, ten to a box, at Rs 110 a box.`

After receiving this information, researchers measure product dimensions by having consumers respond to following type of questions: 1. Communicability and believability- Are the benefits clear to you and believable? If the score are low, the concept must be refined or revised. 2.Need level- Do u see this product solving a problem or filling a need for you? 3Gap level-Do the products currently meet this need and satisfy u? the greater the gap, the higher the expected consumer interest. Marketers can multiply the need level by the gap level to produce a need gap score. high score means the consumer sees the product as filling a strong need not satisfied by available alternatives

4.Perceived Value-Is the price reasonable in relationship to the value? The higher the perceived value, the higher is expected consumer interest. 5.Purchase Intention-Would you(definitely, probably, probably not, definitely not)buy the products? Consumers who answered the first three question positively should answer `definitely` here.

6.User targets, purchase occasions, purchasing frequencywho would use this product, when, and how often? Respondents answers indicate whether the concepts has a broad and strong consumer appeal, what product it compete against, and which consumer are the best targets

4.Marketing Strategy Development Following a successful concept test, a new product manager will develop a preliminary three part strategy plan for introducing the new product into the market The first part describe the target market size, structure, and behavior: the planed product positioning; and sales , market share, and profit goals sought in first few years

5.Business Analysis After management develops the product concept and marketing strategy, it can evaluate the proposal business attractiveness. Management need to prepare sales, cost and profit projection to determine whether they satisfy company objectives. If they do, the concept can move to the development stage. Total estimated sales are sum of estimated first time sales, replacement sales, and repeat sales. Sales estimation methods depend on whether the product is purchased once, infrequently or often

6.Product Development The job of translating target customer requirement into a working prototype is helped by a set of method known as Quality function deployment(QFD). The methodology takes the list of desired customer attributes(CAs) generated by market research and turns them into a list of engineering attributes(E As) that engineers can use.
The R&D department will develop one or more physical versions of the product concept. it goals is to find a prototype that embodies the key attributes described in the product-concept statement, that performs safely under normal use and conditions, and that the firm can produce within budgeted manufacturing cost. When prototype are ready, they must be put through rigorous functional tests and customer tests befor they enter the market place. Alpha testing is testing the product within the firm to see how it performs in different applications.
After refining the prototype further, the company move to beta testing with customers Consumer testing can take several forms, from bringing customers into a laboratory to giving them samples to use in their homes. P&G has on site labs such as diaper testing centre where dozens of mothers bring their babies to be studied

7.Market Testing After management is satisfied with functional and psychological performance, the product is ready to be dressed up with a brand name and packaging and put into market test. In a authentic setting marketers can learn how large the market is and how consumers and dealers react handling, using , and repurchasing the product.

Method of consumer goods market testing a) Simulated Test marketing It calls for finding 30 qualified shoppers and questioning them about brand familiarity and preferences in a specific product category These consumers attend a brief screening of both well -known and new TV aids. once ad advertises the new product but is not singled out for attention. Consumer receive a small amount of money an are invited into a store where they may buy any item. the company notes how many consumers buy the new brand and competing brands. This provides a measure of ads relative effectiveness against competition ads in stimulating trial.

b) Controlled Test Marketing In this a research firm manages panel of stores that will carry new products for a fee. The company with the new product specifies the number of stores and geographic locations it want to test. The research firm delivers the product to the participating stores and control shelf position; number of facings, displays, and POP and pricing. Electronic scanners measure sales at checkout.the company can also evaluate the impact of local advertising and promotions

c) Test Markets The ultimate way to test consumer product is to put it into full blown test markets. The company choose a few representative cities, and the sales f forece tries to sell the trade on carrying the product and giving it good self exposure. The company puts on a full advertising and promotion campaign similar to the one it would use in national marketing Test marketing also measures the impact of alternative marketing plans by varying the marketing program in different cities.

8) Commercialization In this process company will face its largest cost to date.it will need to conract for manufacture or build or rent a full scale manufacturing facility. a) When(Timing) 1.First Entry 2.Parallel Entry 3.Late Entry

b) Where(Geographic Strategy) The company must decide whether to launch the new product in a single locality, a region, several regions, the national market, or the international market. Most will develop a planned market rollout overtime company size is also an important factor. c) Whom(Target market Prospects) Within the rollout markets, the company must target initial distribution and promotion to best prospect groups

d) How(introductory market strategy) A company must develop an action plan for introducing new product into rollout markets, because new-product launches often take longer and cost more money than expected, many potentially successful offerings suffer from underfunding. It is important to allocate sufficient time and resources-but also not overspend- as the new product gain traction in the market place
Product- Basic concept
A product is any want satisfying attributes a consumer receive in exchange. The product benefit could be physical as well as psychological. Formerly, products were what the factories made. These days product are what the consumer wants.
Role of product Manager
M&d Ad agency Media

Promotion Services
R&d
Legal
Packaging
Product manager
Fiscal
research Purchasing
Publicity
Sales
Product Classification
Product are
classified on the basis of consumer buying behavior and their attitude:-consumer product, industrial product etc. Classification of Consumer products Convenience Product Specialty Product:- These have unique character or strong brand identification.eg expensive music system
Product managementMeaning and Definition

Product Management encompasses
the whole range of activities pertaining to product planning and management. In product planning we include the basic corporate plan and marketing plan from which the product plan emerge. In the product plan, we consider product strategies like

Product line length - Product line depth - Line stretching both upward and downward Product management also include -New product introduction -Product life cycle Product plannings new product management
-

Covers the entire spectrum of marketing management like pricing, promotion and distribution of new products. Slowly products are raised from commodity status to brand status, which are then build over a period of time so as establish a bond with consumer.
Objective of Product Management

To
design product strategies w.r.t customer, industry and competition analysis. To spot marketing opportunities, and to see whether they are exploitable. To seek growth through new product development. To plan strategies for each stage of product life cycle
Objective of Product Management

To
generate new product ideas and develop them further. To consolidate existing product profile. To do portfolio analysis. To improve and modify existing products. To introduce brand extension and line extension. To identify the brand identity, building brand image,position a brand, build a brand, to develop brand equity and measure it.
Product line and Product mix

A
product line is group of closely related product offerings of an organization.eg Videocon WM lines, TV line. Product mix consists of all the individual products available through the organisation.Product mix may have several product lines, and each product line several product models, styles ,sizes.
Product line length

What
should be optimum length of a product line? If the company objective is to increase the market share, it will than have longer product line, contribution of individual products to profit may be ignored. A company whose objective is to have larger profit will have a shorter product line consisting of those items which contributes
Line Stretching
Each
company has a range of products in its existing product lines. Line stretching occurs when this range is lengthened.
Managing New Product Opportunities

(Product Category) New existing New New Flanker
Product (Brand Name) Franchise Existing Extension Brand
Line Extension
Classification of Opportunities
Managing New Product opportunities

We
classify the opportunities to develop new products in terms of product categories and brand names. what matters is whether the product falls within on an existing category or in a new category. When both the category and brand name are new, it is treated as a new product .eg Children disposable diaper comes as a new ca
Managing New Product opportunities

Some
times the product assumes a new brand name but falls within an existing product category. It is called as Flanker Brand. Line extension use an existing brand name and a product that is changed for the better, say flavor or size or model.
Marketing Planning
Developing a
marketing plan is a key responsibility of product managers job. In fact it is single most important activity of the product manager. The marketing plan can be dividev into two general parts:Situation Analysis:- which analyze the background of the market of the product
Marketing Planning
Objectives, strategy and programs- Based on the background analysis that direct the product manager actions A marketing plan is a written document containing the guidelines for the business centers marketing programs and allocations over the planning period. Plan is a written document not something stored in product managers head.
Marketing Planning
The
characteristic of marketing plan produce multiple benefits. Requiring that the plan be written calls for disciplined thinking. It also ensures that prior strategies that succeeded or failed are not forgotten A written plan provides a vhicle for communications between functioning area of the firm such as manf, sales, finance. A written plan provides continuity when
Marketing Planning
Management turnover occurs
and quickly introduces new employee to situation facing the business. Marketing plan is usually written at the business center level.This is purposely vague because the precise level at which plans are written varies from organization to organization.
Hierarchy of Planning
Corporate strategy planning
Group or sector planning SBU planning Annual marketing
Often
there is confusion between strategic planning and marketing planning which are distinct in two ways Strategic planning usually takes place at higher level in the organization then the marketing planning. Due to long term nature of strategic plans,they usualy have a longer time horizon
Horizon
than marketing plans.A horizon of three to five years or more with annual update is not uncommon In summary The marketing plan is an operational documents, it contains strategies for a product, it is a specific statement of how to achieve short term usually annual results.
Objectives of marketing planning
To define the current situation facing the product To define problems and opportunities facing the business. To establish objectives To define the strategies and programs necessary to achieve the objectives j
Objectives of marketing planning
To pinpoint responsibility for achieving product objectives To encouraged careful and disciplined thinking. To establish a customer-competitors orientation.
The planning process

Planning Analysis Objectives Strategies Evaluating Implementing

In
the planning process the collection and analysis of data and the development of product strategies take place over a limit time frame. There is no beginning or ending of planning process as a whole. The formal part of the process is folowed by implementation, during which program such as distribution,promotin ad and like are executed.

Monitoring and
evaluating both the performance of the plan and changes in competition or customer in the external environment are also a continuum task.
Steps in the planning process

Update
the facts about the past Collect background data Analyse historical and background data
Brand Management
Objectives
What is a brand and how does branding work? What are the elements of Brand? What is brand equity? How is brand equity built, measured, and managed? What are the important decisions in developing a branding strategy?
Steps in Strategic Brand Management
Identifying and establishing brand positioning Planning and implementing brand marketing Measuring and interpreting brand performance Growing and sustaining brand value
What is a Brand?
A brand is a name, term, sign, symbol or design, or a combination of them, intended to identify the goods or services of one seller or group of sellers and to differentiate them from those of competitors.
The Role of Brands

Identify the maker Simplify product handling Organize accounting
Offer legal protection
The Role of Brands

Signify quality Create barriers to entry Serve as a competitive advantage Secure price premium
What is Branding?
Branding is endowing products and services with the power of the brand.
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. Brand equity is a set of assets(and liabilities) liked to a brand`s name and symbol that adds to (or subtracts from) the value provided by a product or service to a firm and /or that firm`s customers
Brand Equity Components

Brand Awareness Brand Loyalty Perceived quality
Brand associations
Brand loyalty
Reduced marketing cost Trade leverage Attracting new customer Respond to competitive threat
Familiarity-liking Brand awareness
Brand to be considered
Reason to buy Price Channel member Interest Extensions Reason to buy Create positive Attitude Extensions
Provide value to The customer by enhancing Customer`s Interpretation/ Processing of Information Confidence in the Purchase decision Use satisfaction
Provide value To the firm by Enhancing Efficiency and Effectiveness of Marketing programs Brand Loyalty Prices Brand extensions Trade leverage Competitive advantage
Brand Equity
Perceived quality
Brand association
Other brand assets
Competitive Advantage
Brand Awareness
Awareness refer to the strength of the brand`s presence in the consumer mind. Awareness is measured according to the different ways in which consumers remember a brand ranging from recognition(have you been exposed to this brand before?) to recall(what brands of this product class can u recall?) to top in mind(the first brand recalled) to dominant(the only brand recalled)
Perceived quality
Perceived quality is usually at the heart of what customers are buying, and in that sense, it is a bottom-line measure of the impact of a brand identity. Perceived quality reflects a measure of goodness that spread over all elements of the brand. Even when the brand identity is define by functional benefits, most studies will show that perceptions about those benefits are closely related to perceived quality
Perceived quality
Achieving perception of quality is usually impossible unless the quality claim has substance. Percieved quality may differ from actual quality for a variety of reasons Firstly, consumer may be overly influenced by a previous image of poor quality. Second, a company may be achieving quality on a dimension that consumer do not consider important.
Brand loyalty
Brand
loyalty is a key consideration when placing a value on a brand that is to be bought or sold,because a highly loyal customer can be expected to generate a very predictable sales and profit. It is simply much less costly to retain customers than to attract new customer.
Brand loyalty
The
loyalty of existing customers also represents a substantial entry barrier to the competitors in part because the cost of enticing customers to change loyalties is often prohibitively expensive. Loyalty Segmentation A market can usually be divided in the following groups
Brand loyalty
Noncustomers(Those
who buy competitor brands or are not product class users) Price Switchers(Those who are price sensitive) The Passively Loyal(Those who buy out of habit rather than reason) Fence Sitters(Those who are indifferent between two or more brand Committed
Brand loyalty
The Challenge is To improve Brand Loyalty Profile To increase no. of customers who are not price switchers. To strengthen the fence sitters and committed ties to the brand To segment in which firms often under invest r passive loyal and the committed customers
Brand Associations
It
is the associations that consumer make with a brand. These association might includes product attributes, a celebrity Spokesperson or brand symbol.e Brand associations are driven by the brand identity-what the organization wants the brand to stand for in the customers mind.
Strategic Brand Analysis Customer Analysis Competitor Analysis Self Anal Trend Brand image/identity Existing Br Motivation Strengths, Strategies and image Unmet needs Vulnerabilities Brand Segmentation Heritage Strength/cap Org Value
Brand Identity System Brand Identity Core Extended Brand as a Brand as a Brand as Product Org Person
Product Scope Product Attrib Qality/Value Users Uses County of Origin Org Attrib (innovation cons concern Trustworthiness) Local/Global Personality ( Genuine, energetic rugged)
Brand as Symbol
Visual Imagery Brand Heritage
Brand customer Relationship
Value Proposition Functional Emotional Self expresive Benefits Benefites Benefits

Brand Customer Relationship
Credibility Support other Brand
BRAND IDENTITY
A
brand identity provides Direction Purpose Meaning for brand A brand identity is unique set of brand association strategist aspires to create or maintain
BRAND IDENTITY
These
association represents What the brand stands for? imply a promise to customer from organization member Brand identity should help establish a relationship between
BRAND IDENTITY
The brand and customer by Generating value proposition involving Functional Emotional Self expressive benefits g
BRAND IDENTITY
Brand
identity consists of 12 dimensions organized around 4 prospective. 1.The Brand as a Product a) Product Scope b) Product attributes
BRAND IDENTITY
c) Quality/value d) Users e) Uses f) Country of Origin 2. Brand as a Organization a) Organization attributes b) Local/Global
BRAND IDENTITY
3. Brand as a Person a) Brand Personality b) Brand Customer relationship. 4. Brand as Symbol a) Visual imagery b) Brand Heritage
BRAND IDENTITY
Brand identity Structure includes Core Identity Extended Identity Core identity is the central, timeless essence of the brand is most likely to remain constant as the brand travels to new markets and products.
BRAND IDENTITY
The
extended identity includes brand identity elements,organised into cohesive and meaning full groupings, that provide texture and completeness
Brand Identity Traps

1. The Brand Image Trap
2. Brand Position Trap 3. External Perspective Trap
4. Product Attribute Fixation Trap
The Brand Image Trap

Knowledge
of brand image(how customer and other perceive the brand)provides useful and even necessary background image when developing a brand identity. In brand image trap,however,the .patience, resources or expertise to go beyond brand image is lacking, and brand image become identity rather than just one input.
The Brand Image Trap

Brand Image 1. Brand image is usually passive and look towards past. 2. It tends to be tactical. Brand Identity 1. Brand identity should be active and look to the future. 2. It should be strategic. 3. Brand identity should also reflects brands enduring qualities, even if they are not salient in the brand image.
The Brand Position Trap

A
brand position is the part of the brand identity and value proposition that is to be actively communicated to the target audience and that demonstrates an advantage over competing brands. g
The Brand Position Trap

The
brand position trap occurs when the search for a brand identity becomes a search for a brand position, stimulated by practical need to provide objectives to those developing the communication programs. The goal then becomes and ad tag line rather than a brand identity.
The External Perspective Trap

Brand
Identity is something that gets customers to buy the product or services because of how they perceive the brand. The orientation is entirely external. The external perspective trap occurs when firms fail to realize the role that a brand identity play in helping an organization understand its basic value and purpose.
The Product Attribute Fixation Trap

This
is the most common trap,in this trap strategic and tactical management of the brand is focused solely on product attributes The failure to distinguish between a product and brand creates the product attribute fixation trap.
A Brand is more Than a Product

The product includes characteristics such as
Scope(Crest
makes dental hygiene product. Attributes(Volvo is Safe) Quality/Value(Nestle delivers a quality product) Uses

A brand includes these product characteristics and much more Brand users(Lux Filmi Sitaron ka) Country of origin( Indian Spices MDH) Organizational associations(3M is an innovative company) Brand Personality(MRF suggest a Muscle Man)

Symbols
Brand
Customer relationship(Gateway is friend) Emotional benefits(Saturn user feel pride in driving US car) Self expressive benefits(A Hobart user uses only the best
The Brand as a Product

1.The Product scope: Association with Product Class A core element of a brands identity is usually its product thrust, which will affect the type of associations that r desirable and feasible. A strong link to product class means that brand will be recalled when the product class is cued.

2.Product-Related Attributes Attributes directly related to the purchase or use of a product can provide functional benefits and sometimes emotional benefits for customers A product-related attribute can create a value proposition by offering something extra or by offering something better.

3.Quality/Value The quality element is one product-related attribute important enough to consider separately Many brands use quality as a core identity element.eg, Gillette is positioned in large part by(The best a Man can Get)

4.Associations with use occasion Some brands successfully attempts to own a particular use or application, forcing competitors to work around this reality.eg,Gatarode owns the use context of athletes looking to sustain a high level of performance.

5.Associations with Users Another track is to position a brand by a type of users eg we expect a Mercedes to be driven by an executive or top class businessman 6.Link to Country or Region
The Brand as a Organization

This
perspective focuses on attributes of organisations rather than those of product and services. Such org. attr. As innovation, a drive of quality,and concern for the environment r created by the people,culture,values,and programs of the companies
g

Organizational
attributes r more enduring and more resistant to competitive claims than r the product attributes It is much easier to copy a product than to duplicate an org with unique people, values and programs.
g

Org
attr. Usually apply to a set of product classes and a competitor in only one product class may find it difficult to compete. Org attr such as being innovative r hard to evaluate and communicate, it is difficult for to demonstrate that they have overcome any perceived gap.it is hard to show that one organization is innovative.
The Brand as a Person (Brand Personality)

Like
a person, a brand can be perceived as upscale,competent,impressive,trustworthy,f un, active,humorous,casual,formal,youthful or intellectual. It can help to create a self expressive benefit that becomes a vehicle for the customer to express his or her own personality.eg apple users identify himself as a creative. f
The Brand as a Person (Brand Personality)

It
can be the basis of relationship between the customer and the brand.eg Mercedes Benz an upscale, admired person. Hallmark a worm, emotional relative. It may help to communicate a product attr. and thus contribute a functional benefits.eg MRF man`s strong energetic personality suggest that tires r also strong and energetic. g
The Brand as a Symbol
A strong symbol can provide cohesion and structure to identity and make it much easier to gain recognition and recall. Symbol involving visual imagery can be memorable and powerful. each strong visual image captures much of its respective brands identity because conectin between symbol and identity elements have been built up over time.
The Brand as a Symbol

Symbol
r more meaningful if they involve metaphor which is representing functional, emotional and self expressive benefits. A vivid, meaningful heritage also represents the essence of the brand. DABUR
The Identity structure

Core Identity It represents the timeless essence of the brand. It is the center remains after you peel away the layers of an onion It contains the associations that are most likely to remain constant as the brand travel to new market and product

It
includes elements that make brand both unique and valuable e.g.` Melt in your mouth not in your hand `suggest unique combination of flavor and convenience provided by M&M Candy. The Extended Identity It includes elements that provide texture and completeness g

It
fills in the picture, adding details that help portray what the brand stands for. Brand Identity for Close Up Tooth Paste Core Identity: Oral freshness allows young people to come closer to each other. Extended Identity: Quality product from from lever.
Providing a Value Proposition

A
brands value proposition is a statement of functional, emotional, and self-expressive benefits delivered by the brand that provide value to the customer. An effective value proposition should lead to a brand-customer relationship and drive purchase decisions.
Functional Benefits
It
is a benefits based on a product attributes that provides functional utility to the customer. Such a benefits will usually relate directly to the functions performed by the product or service for customer Coke provides refreshment and taste. Huggies deliver comfort and fit, so leak r reduced
Emotional Benefits
When
the purchase or use of particular brand gives the customer a positive feeling, that brand is providing an emotional benefit. Thus customer can feel any following
Energetic and vibrant when drinking Coke. Strong and rugged when wearing Levies. Warm when buying or reading a Hallmark card.
Self-Expressive Benefits
Brands
and products can become symbols of a persons self-concept. A brand can thus provide a self-expressive benefit by providing a way for a person to communicate his or her self-image. Each person has multiple roles-for example a woman may be a wife,mother,writer,tenis player.For each role,the person an associated self concept and a need to express self concept
Self-Expressive Benefits
The
purchase and use of brands is one way to fulfill this need for self-expression. A person may define himself or herself as any of the following: A nurturing parents by using Kellogs Sophisticated by having Mercedez
Brand Personality
It
is defined as the set of human characteristics associated with a given brand. It includes such characteristics as gender,age,and SEC,as well as such clasic human personality traits as warmth,concern,and sentimentality.
g
Brand Personality
Brand
personality, like human personality,is both distinctive and enduring. e.g. Coke is considered real and authentic whereas Pepsi young, spirited and excited. The brand personality concept has considerable face validity. Difference between groups such as users and nonusers are often reasonable and provide useful insight.
Why use brand personality ?

The
brand personality construct can help brand strategists by enriching their understanding of people`s perception of and attitudes towards the brand, contributing to a differentiating brand identity, guiding communication effort, and creating brand equity.

Enriching Understanding The brand personality metaphor can help manager gain an in-depth understanding of consumer perceptions of and attitude toward the brand. By asking people to describe a brand personality, feelings and relationship can be identified that often provide more insight than is gained by asking about attribute perceptions

Guiding the communication efforts Brand personality concept and vocabulary communicates the brand identity with richness and texture to those who must implement the identity-building effort. Practical decisions need to be made about not only ad but packaging, promotions ,which events to associates with, and the style of personal interaction between customer and the brand.

Creating Brand Equity
Brand personality How it creates Brand equity Self Expression Model Functional Benefit Representation Model
Relationship Model
The Self Expression Model
The premise of self-expression model is that for certain groups of customers, some brands prbecomes vehicles to express a part of their self identity. This self identity can be their actual identity or an ideal self to which they might aspire. People express their own or idealized identity in variety of ways, such as job choice,friends,attitedes,opinions,activities, and lifestyles.
The Self Expression Model
Brands that people like,admire,discuss,buy, and use also provide a vehicle of self expression. A brand can be used for expression even if it lacks a strong personality. A person can express frugality by buying a cheap brand. Attaching even a fuzzy personality to a brand, however, usually provides insight into how that brand is being used for self expression.
How the brand helps to express a personality

1.Feelings Engendered by the Brand Personality There can be a set of feelings and emotions attached to a brand personality, just as there r to a person. Some brands(MCI) can be aggressive and pushy, while others(kodak ,knor soup) can be worm and empathetic. Such use of a brand can cause feelings and emotions to emerge.

2.The Brand as a Badge A brand could serve as a persons personal statement. The presence of brand can serve to define a person with respect to others, and when social identity is involved, what is expressed can be very important to the individual.

3.The Brand Becomes Part of the Self. The ultimate personality expression occures when a brand become extension or an integral part of self. E.g. A person may need Levi`s jeans on a lazy Saturday afternoon in order to feel fully as if the weekend has arrived. The potential to create oneness with some people can represent a significant opportunity for a brand.
The Relationship Basis Model
To see the relationship basis model works, consider types of people with whom you have relationship and the nature of those relationship. 1.Down to earth, family oriented,genuine ,old fashioned(sincerity) This might describe brands like Hallmark , Kodak, and even Coke The relationship might be similar to one that exists with a well-liked and respected member of the family.

2.Spirited,young,up-to-date, outgoing (Excitement) Pepsi fits this mold more than Coke.Lays Especially on a weekend evening, it might be enjoyable to have a friend who has these personality characteristics. 3.Accomplished,influrntial,competent Think a relationship with a person whom u respect for their accomplishment.HP,Dainik Jagron.

3.Pretentious,Wealthy,Condescending. (Sophistication) For some this would be BMW,Mercedes. The relationship could be similar to one with a powerful boss or a rich relative. 4.Atheletic and outdoorsy(Ruggedness) Nike. When planning an outing a friend with outdoorsy interests would be welcome.
Brand Relationship Quality

A
goal of brand strategists is to create segment with high brand loyalty's a high(BRQ). But what r the dimension of BRQ? How can it be measured? 1.Behavioral Interdependence The degree to which the actions of the relationship partners r intertwined is indicated by frequency of,importance of, and involvement in the interaction.

This brand plays an important role in my life. I feel something's missing when I haven`t used the brand in my life. 2.Personal Commitment The partners r committed to each other. There is a desire to improve or maintain the quality of relationship over time, and guilt is felt when it is compormised I feel very loyal to this brand. I will stay with this brand through good times and bad.

3.Love and Passion Intense emotional bonds between partners, and inability to tolerate separation ,reflection of love and passion that exists. No other brand can quite take place of this brand. I would be very upset if I couldn`t find this brand.

4.Nostalgic connection The relationship is based in part on the memory of good times. This brand reminds me of things I have done or the place I have been. This brand will always remind me of particular phase of life 5.Self concept connection The partners share common interests,activities and opinions The brand`s and my self image r similar. The brand reminds me of who I m.

6.Intimacy A deep understanding exists between partner .The customer will achieve intimacy by knowing details about the brand and its use. I know a lot about this brand. I know a lot about the company that makes this brand.
Brand Positioning
With
an identity in place and a value proposition specified, implementation begins. Communication objectives need to be established, and execution planned and implemented. The place to start is with a brand position statement-the cornerstone of comn.program
Brand Positioning
Brand
position is the part of the brand identity and value proposition that is to be actively communicated to the target audience and that demonstrates an advantage over competing brands. The four salient characteristics of a brand position as reflected by phrases(Part, target audience, actively communicated,tra demonstrate advantage)
Brand Positioning
1.A Part of the Identity/Value Proposition For some brands,the brand dentity and value proposition do combined into a compact statement that can serve (perhaps minor adjustment) as the brand position, but not in all the cases E.g. Mc D cleanliness Brand position can be changed without the identity or value proposition of which it is a subsets.
Brand Positioning
The Target Audience The brand position should also target a specific audience, which may be a subset of the brand`s target segment. Active Communication It implies that there should be a specific communication objectives focused on changing or strengthening the brand image or brand-customer relationship.
Brand Positioning
This
objective should be accompanied by measurement. If the goal is to create or improve the friend relationship, an agree-disagree scale could be developed Such scales could be used both in testing on communication programs and in tracking their impact.
Brand Positioning
Brand Position and the Brand Image Brand image reflects current perceptions of a brand Brand position is more aspirational,reflectin perceptions that the strategists want to have associated with the brand. In creating a brand position, a useful step is to compare brand identity with the brand image on different image dimensions
Brand Positioning
Dimension Product Brand Identity (Goal) Premium beer Brand Image (Current Reality) Premium beer
User
Personality
Young(in spirit or body)

Fun, Humorous
Middle-aged
Fun, Humorous
Functional benefits Superior Flavor

Emotional benefits Social group acceptance
Superior Flavor
(None)
Brand Positioning
Comparison of
the identity with the image will usually result communication tasks being reflected in a brand position statement. a.Augmenting an Image A brand image might be too restrictive, while the identity points the way to adding other segment or application.
Brand Positioning
The
brand position therefore attempt to add association to the brand image and to soften restrictive perceptions. b.Reinforcing on Image The brand image should not dictate the position(or identity),but neither should it be ignored Often an effective brand position will reinforce and exploit an image strength.
Brand Positioning
c.Diffusing an Image Sometimes specifying what a brand is not is as important to the integrity of the communication program as specifying what it is. Specifying that the brand is not exclusively for middle-aged users suggests visuals imagery to avoid as well as imagery to include.
Brand Positioning
3.Demonstrate an advantage The position should specify a point of superiority that is a part of value proposition The point of advantage should resonate with customers and be differentiating i.e. represent something different from what a competitors provide.
Positioning Strategy
Positioning strategy
is aimed at building brand differentiation within the value frame of the target by market. The need for competitive positioning is primarily triggered by emergence of intense competition in most of the product categories. The competition implies imminent product similarity and loss of identity.
Positioning Strategy
Positioning is
increasingly seen as a device to gain control over market by means of customer pulling brand differentiation The four question that can reveal the totality of a brand are Who am I? What am I? For whom am I? Why me?
Who am I?
Answering
this question would reveal the origin or pedigree of the brand: where it belongs or where it comes from. Identifying family or origin could give a brand a competitive advantage by allowing it to draw positives strengths of family. There r two option g
Who am I?
1.Positioning by corporate identity Brands draws a direct connection with the corporate identity and seek to play on its credential. Sometimes ,firms use the corporate brand name to label their entries in various product categories.e.g LG,Samsung. A separate brand is launched by revealing the corporate connection by a statement `From a house of.` or `A quality product of
Who am I?
2.Positioning by brand endorsement In this case a successful brand is used as an endorser of a new entry. Dabur uses its successful brand vatika to promote product like shampoos and soap. Nestle used Maggi name to promote ketcup, Raymonds Park Avenue brand endorses soap ,belts aftershave.
What am i?
In
this strategies, a brands functional capabilities r used for positioning purpose. 1.Category Positioning This involves making a product jump over the category it originally belongs to and positioning it in a different way. Suryansh brand of diamonds r positioned as an investment, not as a piece of jewellery.
What am i?
2.Benefit positioning This strategy involves choosing a unique, not-yet-offered benefits to position the brand Fructies shampoo is positioned asfor strong hair. All Clear shampoo is positioned as a anti-dandruff shampoo offering the benefit of dandruff removal. g
What am i?
3.Usage and Use Time Positioning A brand may choose to preempt a particular usage or usage time for positioning purpose. Livon hair lotion is positioned as something to be used after shampoo to detangle hair. Nescafe aims to position the coffee brand as a morning beverage(Get the day started) g
What am i?
4.Price-quality Positioning A brand can choose to occupy a distinct position on price-quality spectrum. At the bottom end it means an economy, like Nirma,Breeze both low quality, low price position. At the top end, it means premium position. surf Excel and Ariel. PeterEngland,Louis PhiliPPe from Madura Garments
For whom am i?
This
strategies looks at the target market for positioning the brand. Depending upon the segmentation scheme used to divide the market,a brand can focus on a specific customer group for positioning purpose. This reveals the brands appeal to other group, but greater relevance is achieved for the target group.
For whom am i?
1 Demographic Group Variables like age,sex,education could be used to divide the market. Clinic Shampoo is positioned as a shampoo for young school-going girls market. Zandu Kesri jeevan is positioned as a strength tonic for old people. Lenovo Notebook is positioned as a laptop meant for professionals in the industries.
For whom am i?
2.Behavioral The usage volume differs in the market and this gives rise to groupings like light, heavy and medium user segments. A brand may choose to use his classification to position itself. Rath Vanaspati focus on the professional caterers segment known for bulk consumption.
For whom am i?
3.Psychographic A brand can be positioned according to the psychographic traits of the people Pepsi positioned as a drink of what they call `New generation or generation next. Asian Paints is positioned as the brand for a group of self expressive people
Why me?
This group involves positioning the brand on the basis of a unique reason A brand must have a unique benefits or attribute to give the prospects a reason to buy. Medimix ayurvedic soap is positioned as made from 24 different herbal ingredients. Anchor White boosts of being a vegetarian toothpaste. J&J `No tears Shampoo` is positioned as a non-hurting shampoo.
Managing Brand Systems

Brands System objectives A key to managing brands in an environment of complexity is to consider them as not only individual performers but members of a system of brands that must work to support one another. A brand system can serve as launching platform for new products or brands and as a foundation for all brands in the system.

a. Exploit commonalities to generate synergy. A set of brands may be related by brand name(Dabur Amla) or a partial name (Dabur Anmol Sarso Amla),yet have different identities because different products or markets r involved.The challenge is to exploit commonalitis in order to generate synergy in the form of enhance brand impact

b.Reduce brand identity damage. Differences between brand identities in different contexts and roles have the potential to undercut a brand. The challenge is to manage the system to avoid such undesirable outcomes. Achieve clarity of product offerings Facilitate change and adoptation.
Brand Role
1.Driver 2.Endorser 3.Strategic Brand 4.Branded benefits a. Features b.Components c.Service Programs
Brand Role
5.Subbrands Roles a. Describe offerings b.Structure and clarity offering c.Augment/modify brand identity d.Exploit market opportunity e.Support Extensions
Brand Role
1.Driver Role A driver brand is a brand that drive purchase decision; its identity represents what the customer primarily expects to receive from the purchase The brand that plays a driver role represents the value proposition that is central to purchase decision and use experience. E.g. Gillette Sensor Razor, customers r primarily buying the technology and performance represented by sensor name
Brand Role
The
extent to which a brand plays a driver role will influence both the investment that the brand will need and the nature of the brand identity. The identity of a brand that has primarily driver role needs to generate real customer response, or it will not fullfill the key aspect of its role.
Brand Role
2.The Endorser role In this role, a brand provides support and credibility to the driver brands claim. Since the corporate brand usually represents and organization with people,culture,values and programs, it is well suited to support a driver brand, and thus it often play endorser role.
Brand Role
The
reassurance is of particular importance when the product is new and untested. In fact, an endorser brand can sometimes fade after it provides this initial support By acting as a endorser.e.g. Levi`s was able to lend credibility with both retailers and customers to the Dockers brand when it was first introduced.
Brand Role
While the name Levis means young,rugged, urban, male and denim, however Docker is aimed as man who requires a different fit and style. there was a real risk that the Levis user imagery would be diluted by Dockers and that,conversely,the Levis image would inhibit Docker from moving into relatively more fashionable clothing. As Dockers got stronger, it made sense to drop the Levis endorsement
Brand Role
3.Strategic Brands Attempting to support and grow all brand is tempting. such a policies, however,usually reduces the chances that really strong brands will be created or maintained. Instead resources r often expended unproductively on problem brand. The strategic imperative is to allocate resources by classifying brands into divestment candidates,milkers,and strategic brands.
Brand Role
A
divestment canditate is a brand that faces an unattractive market with a weak brand position or that does not fit the future vision of the firm. Its market may be overcrowded, with squeezed margins and a flat or declining sales base, or the brand may lack points of differentiation and may require significant investment in order to create a winning strategy.
Brand Role
There
may be Industry dynamics, such as changes in distribution, that can be expected to make brand position even worse Finally, the brand may not fit the direction the firm wants to take in the future.In such situations, consideration should be given to divesting or killing the brand. A milker is a brand that may be tired but has some real strengths
Brand Role
It may have a core customers base that will support reasonable margin. Because the brand can be maintained with minimal support, it can provide positive cash flow to other brand. A strategic brand is one that is important to the future performance of the organization. There r two reasons why a brand may considered strategic. First it may represent a meaningful quantity of sales and profits in future.
Brand Role
Perhaps
it already is a large, dominant brands and is projected to maintain or expand its position, or perhaps it is now a small brand but is projected to become a major one. Second, the brand could also be a linchpin of other business or of a future vision of the firm
Brand Role
3.Subbrand Roles A subbrand is a brand that distinguishes a part of the product line within the brand system.e.g. Dabur Vatika. To develop a coherent and effective branding system, it is important to know the roles of a subbrand and determine what roles r involved in each context. A sound subbrand strategy involves several aspects.first, the subbrand should be consistent with and support the parents brand identity.second, the subbrand should add value by fulfilling one or more of following tasks.
Brand Role
a. Describe Offerings A brand fulfilling the descriptor role communicates the product class, a feature target segment, or a function of a brand.e.g Oral-B tooth and gum care, Oral-B anti-Plaque Rinse. b. Structure and Clarify Options When companies create new products or services, they often do so either to meet the needs of a poorly served niche within their current market or to reach out of a niche that is yet unserved by the company.
Brand Role
The
more products a company offers, the more confused consumers may become. If the brand is seen in settings that seem inconsistent with its identity, customers will be unclear about what the brand stands for. Furthur,when the brand is introduced into a new niche to deliver a different set of functional and emotional benefits, it is more likely that a customers expectations will not met and dissatisfaction will result.
Brand Role
Subbrand provide a way to offer different products or serve different markets under one brand name while minimizing both consumer confusion and brand dilution. A subbrand presents the customer with a new option, but it also creates a structure that positions the option with respect to the brand. The customer understands that(1) the new product fits within the brand system and possesses at least some aspects of brand identity. but that(2)the new product is different on key dimension from other products in the brand system
Brand Role
c.Augment/Modify the identity by changing association An analysis of a new business area often shows that the development of new brand would be prohibitively expensive. An existing brand is inadequate for the new context, as its associations fail to provide the needed advantage-indeed, they might even be a liability Further stretching brand into a new context risks diluting the brands existing product class or attribute associations.
Brand Role
A
practical solution to this dilemma is the use of a subbrand. When subbranding works well, it can draw from parents brand the reassurance of a familiar name plus other intangible and personality dimensions. It allows greater latitude in adding associations and reduces the risk of diluting the parent brand.
Brand Role
d. Exploit Market Opportunities A subbranding strategy can allow a firm to engage in strategic opportunism, a management strategy which emphasizes detecting and responding quickly to opportunities that emerge in the market. When an emerging niche is detected, a sub brand tailored for that segment can be developed-usually in minimum investment.
Brand Role
If
the segment grows, the subbrand can become basis for a long-lasting business; if it has short life, the subbrand can be allowed to die without putting the core brand into jeopardy. e. Facilitate a horizontal or vertical extension strategy by qualifying or modifying the parent brand.
Brand Role
Branding Benefits A problem facing many brands is that their identity is difficult to communicate because it lacks distinctiveness, credibility, or memorability. The solution may lie in branding features, components, or service programs that provide customer benefits. a. Branding a feathure b.Branding a components c.Branding a service program
Brand Role
Silver Bullet It is a subbrand or branded benefit that is employed as a vehicle for changing or supporting the brand image of a parent brand. Since a silver bullet has a role that extends beyond supporting its own business, it deserves extra resources allocation in the form of add and/product development.
Brand Extension
The
brand extension, involves using an existing brand name to launch a product in different category.
Why Brand Extension?

Brand
extension strategy has found favor in modern marketing world because of the advantages it has over the other new product launch options. 1.Cost of New Launches A new brand costs anywhere between 50 to 100 million dollars to develop The huge investment required to develop and launch a new brand is major deterrent.

By
extending a brand, the marketer can bring the costs down substantially while increasing the probability of success. 2.Promotional Efficiency When a company needs to support a large no. of individual brand its promotion cost structure goes up. Also investment in one brand does not help to other brand When a Dettol brand of soap is advertised,

3.Consumer benefits From a customer point of view, brand extension offer a less risky route to a new product category. Familiarity with a brand name reduces the risk perceived by the prospect in a brand buying situation. 4.Feedback Effect Brand extensions are justified not only for what they deliver in terms of promotional benefits, they also help the parent brand in many ways,

The
first benefit being the clarity in brahand meaning that an extension can bring. Extension can broaden the product meaning J&J is not about baby shampoo, it is about baby care.IBM is not involved in computer business but in customer solution business. 5.Return
Types of Extension
1.Product Form Extension A product launched in a different form usually means line extension rather than a brand extension. But if a different product form constitutes an entirely different product category,it would be called a brand extension from consumer behavior perspective. E.g. liquid milk and dried milk.Chocolate bars and chocolate powder
Types of Extension
2.Companion Product The idea is to capitalize on product complementarity. The consumer may view both product jointly and hence, provide scope for launching brand extension. E.g. Colgate dental cream Colgate tooth Brush. Gillette Razors-Shave Foam- After Shave.
Types of Extension
3.Customer Franchise A marketer may extend a product range in order to meet the needs of a specified customer group Company may launch a variety of product for nursery school children.the focus here is not customer base but the diverse needs of customer E.g. J&J Baby Shampoo-Body Talc-Baby OilBaby Diapers
Types of Extension
4.Company Expertise Brand extension often come in the forms fo different product category introduction using a common name but emanating from common expertise pool. this strategy is seen in Japanese companies. E.g. Honda car, Gensets, Scooters, Lawnmovers
Types of Extension
5.Brand Distinction Many brands achieve distinction in the form of unique attribute, benefit or feature which gets uniquely associated with the brand. In this situation company can work backwards to launch different products with essentially cash in on this distincton. For instance, Parachute may have expertise of `coconut nourishment` in customer mind over t time.This would give Marico Industries, the opportunity to launch a variety of product exploiting this distinction
Types of Extension
6.Brand Image or Prestige A brand extension may involve a foray into unrelated product categories based on brands exclusive image or product value. This is particularly true of designer brands E.g. Cartier Jewellery-Cartier WatchesCartier Purse-Cartier Pens
Types of Extension
7.Distinctive Taste, Ingredients or Components A brand may develop equity based on any and/or combination of taste, a marketer can make entries into unrelated product categories capitalizing on these properties. Nescafe enjoys proprietary association of distinctive taste. Accordingly the brand can be leveraged in other product fields.
Brand Extendibility
Extension involve
transfer of associations from parent brand to the extension. The nature of parent brand is, therefore, a critical determinants of extension success. The question that strikes is whether all successful brands lend themselves to brand extensions? The brand extendibility depends on its character. There r five types of brand
Brand Extendibility
1.The product Brand It is a situation where there is very little difference between the brand and the product. Brand is used to identify the product. 2.Formula Brand A brand which comes in the formula category simply implies that a standard have been used to make the product. This type of brand may be found in cooking oil category, food and pickles.
Brand Extendibility
3.Know-how Brand It is an expertise that a firm develops in specialized area of activity. Honda has know how in engine. Amul developed expertise in milk processing. 4.Interest Brand A brand may be defined by its centre of interest. it may reflect its core spirit
Brand Extendibility
Gillette
brand maintains its focus on men's grooming in all its brand. 5.Philosophy The brand at this level acquires more intangible character and orientation. The Philosophy transforms the product in a realms altogether different from its physical entity.Sahnaz Hussen.Armani
Leveraging The Brand

One
recipe of strategic success is to create and leverage assets. With its awareness, perceived quality, associations and customer loyalty, a brand is usually the most powerful asset that a firm owns. A strategic question,then,is how that brand can be leveraged to create larger and stronger business entities.

Line Extension In existing Product Class
Stretching The Brand Vertically in Existing pc
Brand Extension In different PC
CoBranding
Stretching Down
Stretching Up
Ad Hoc Brand Ext.
Creating Range Brand
Line Extension
A line extension is a new version of the product within the same product class. New flavors, new packaging options, or new sizes r all line extensions. Line extension can increase costs without compensating increases in volume and make the brand less focused and more difficult to communicate However line extensions can also expand the user base, provide variety, energize the brand, manage innovation, and block or inhibit competitors.
Moving The Brand Down
More and more buyers are turning from prestige and luxury to lower-cost brands that deliver acceptable quality and features. To combat this trend, firms r offering lesser versions of their traditional brand product package What is behind this consumer trend toward value? How can firms adopt a branding strategy that will accommodate downscale version without weakening the brand?

Driving Force Overcapacity created by the combination of new competitors and fairly static market.the new competitors come in part from brand being extended from adjacent product classes, brand entering from other markets, and new or revitalized store brands that r now often competitive in quality Retail environment created by new channels that typically have a lower cost structure, engage in aggressively price competition, and freely used private level goods. New technology

a)Moving Down is Easy; Protecting the Brand is Hard Moving down affects perceptions of brand more significantly then any other option Psychologists have documented the fact that people r influenced much more by unfavorable information then favourable information
It should not assumed that a downward entry is always too risky.if the new product can be made distinct from parent brand through the use of subbarnd and other device,the risk can be reduced. A brand should indeed guard its equity and, in particular its perceived quality Creation of entirely new brand will result in the ultimate separation and protection of the core brand, it does not guarantee success

b)Dropping the price and maintaining quality perception most direct approach to moving a brand down is to lower its price. Marlboro and Pampers r among the brand that have recognized that their equity will not support a large price premium in the face of price-oriented competitors and powerful retailers. Thus they have' value priced`their products to make them competitive A sharp price reduction can indicate the customer that-as they may have begun to suspect-the brand really is not different from any other brand, and is therefore of average quality
Many brand, however still retain a very worthwhile market segmentation at the premium end of the market. They offer premium quality or features that prevent them frm obtaining cost parity with their new competitors. If these brand wishes to move down then they should retain some quality differentiation. The challenge then is to start competiting at a new price point without repositioning the brand as a lower-quality price brand.

c)The use of Subbrands Subbrands such as Kodak`s Funtime film have the potential to permit entry in an emerging low end without threatening the parent brands equity in market. There r two problms,though,with adding subbrand offering that use the premium brand name at a lower price point. The first is possible cannibalization, in that buyer will shift to the cheaper version; the second is the risk that extending the brand down will taint the brand name. The job of subbrand is to reduce these risks by distinguishing the downscale subbarnd from parent brand

d) Will The Identity Stretch? One concern is whether the brand has an identity that can span the vertical line definition or whether the identity is compromised by new entry at lower end. BMW`s 300 series(the smallest and least expensive),500 series, and 700series refelect very different sizes and price points. Each of them however, still have same identity`the ultimate driving machine'. A car that is responsive and fun to drive works at all the price points.
In contrast, the identity of Mercedes is based in part on prestige and exclusivity. Thus the Mercedes190,which cost less then $30,000 presented a problem because of its potential inconsistency with the Mercedes identity of status car for affluent When Mercedes redefined its identity to focus on quality rather than status, the 190 subbrand fit in better and provided a way to extend the Mercedes franchise to a younger group of buyer.

e) Creating a Different Personality (The Parent-Child Relationship) Because of the identity problems that can result when a brand moves down, it may be useful to use the subbrands personality as a way to differentiate the new, lower-price entry. Because family relationship r so familiar to consumers, they offer a clear and rich opportunity for creating distinct but related brand personalities. The subbrand could be a child of original brand, one who cannot yet afford or appreciate the better version. Or it could be grand parent of the original, one who appreciates good value more then premium quality.

f) Distinguishing The Subbrand The product itself is one way to separate the subbrand from the parent brand.if the product is clearly different in terms of features,application,and users, the risk to the core brand is reduced. E.g. Ashoka Yatri Niwas
Moving the Brand Up

A
brand may be leader in volume and market share, with the enviable advantages of economies of scale and retail clout. It is on the store shelf and in the customers mind.However,its price has been squeezed by retailers and consumers, especially from below by both price brands and store brands.
Moving the Brand Up

An
attractive growth segment often emerges at the very high end of the market. This segment enjoys much higher margins, and it also provides interest and even newsworthy developments in what might be a somewhat tired category. How can brands move up to take advantage of this growth and vitality and get out from under oppressive margins pressures?
Moving the Brand Up

a) Using a New Brand When the existing brand name is too much of a drag, the only feasible alternative is likely to be the creation of a stand-alone brand. However, the option of successfully introducing a new brand is often either too costly or simply not feasible, especially when the task is to become the third fourth brand in the mind and on the self. An alternative is to use a subbrand of an existing brand to create a upscale entry.
Moving the Brand Up

b) The role of a subbrand Using a subrands, such as Holiday Inn Crowne Plaza,to pentrate the high end of the market has several advantages. First,it avoids much of the expense of creating visibility and associations for a new brand name Second, the applicable assets of the brand can help provide a value proposition.
Moving the Brand Up

c) Separating the subbrand The basic problem with using a subbrand to move up is that the brand often lack credibility at the higher end. How can a believable claim be made that a subbrand under the sponsorship of middle-tier brand can really meet the standards of a high end market? One key to making it happen is to have a silver bullet within the higher-end line that demonstrate the subbrand`s ability to deliver- a visible flagship.
Moving the Brand Up

d) An upscale entry as a vehicle for downstream enhancement Key motivation for creating an upscale version of the brand is to affect the orginal brand identity positively The upstream brand provides by enhancing the core brands identity is called downstream enhancement.
Brand Extension Decisions

Another
way to leverage a brand with extensions is to use it and create advantage in another product category. The good ,bad, and ugly issues involved in making a brand extension decision. 1. Good The brand`s association, perceived quality, and awareness/presence help the extension.
Brand Extension Decisions

2.More good the extension reinforces the associations and awareness of the brand. 3.Bad The name does not add value to the extension or even have negative association. 4.Ugly The core brand name is damaged or diluted by the extension, or the brand franchise is cannibalized. 5.More Ugly The opportunity to develop another brand is forgone
Creating Range Brands

A
range brand creates an identity that work across the product class. A range brand can also be conceived as a spanning symbol that assists customers in seeing relationship between productsrelationship that they might have missed. By thus breaking through consumers existing categorization structures,range brand can extend a brand in new ways
Range Brands Versus Brand Extension
A range brand looks at brand strategy holistically rather than incrementally. The objective is to create a strong brand assets that will be the basis of a business with a real competitive advantage. The core of a range brand strategy is to develop a vision of the ultimate identity that the brand will posses, and the product lines that the brand will support as an endorser or as a driver brand.
Range Brands Versus Brand Extension

Where
as the brand extension decision will be driven largely by the current brand image a range brand vision may inolve a different future identity for the brand.
The Range Brand Scope
A key decision is to select for inclusion those products that are compatible with the brand`s identity or vision as opposed to its current image. Of course, when selecting business areas,a firm needs to assess its ability to make yhe product, the intensity of competition and price pressures, and market trends However, with respect to branding, two criteria stand out
The Range Brand Scope

1.The brand identity needs to provide a value proposition or basis for relationship in the product class being considered. 2.The product need to fit and reinforce the identity
Why Range Brand?
There are several reasons why range brand can be beneficial. Strategically, the range brand concept can provide coherence and structure to strategy. The essence of business strategy is to address two questions: 1. What business area(product-market) will be included? 2. What competitive advantage will exist in each of these area?
Why Range Brand?
An economist would observe that a range brand provides classic economies of scope i.e. the fixed cost of maintaining a brand name can spread across different businesses A business strategist would see a range brand as providing synergy. A grouping of business is greater than some of its parts, because an investment in one will help the others. in addition, the awareness of range brand can reduce the costs and risk of new product efforts
Why Range Brand?

A
stand-alone brand competing with range brands can be a big disadvantages because of lack of scale economies As range brand being associated with multiple product classes can add visibility and can reasrure consumers that the firm is capable of success in different context.
Co-Branding
Co-branding is when two companies form an alliance to work together, creating marketing synergy. Co-branding may help usage extension. Ineurope, for instance, Bacardi and coke advertise together. This helps Bacardis market penetration strategy because ...
Co-Branding
The synergy that can be created by two wellmatched brands working together in harmony can be considerable and enhance both profitability and the valuation of the brand for both parties. However, the challenges presented by co-branding are considerable, getting the strategy right for a single brand is hard enough, but once two brands are brought together the challenges increase considerably. The brand personalities must be complementary
Measuring Brand Equity

Young &Rubicam`s Brand asset Valuator A major global add agency,who measured brand equity for 450 global brands and more than 8000 local brands in 24 countries. Each brand was examined using a 32 item Questionnaire that included,in addition to a set of brand personality scales, four set of measures 1 Differentiation- Measures how distinctive the brand is in market place

2.Relevance-Measure whether the brand has personal relevance for the respondant.is it meaningful to them? Is it personality appropriate? 3.Esteem- Measures whether a brand is held in high regard and considered the best in class. closely related to perceived quality and the extent to which the brand is growing popularity. 4.Knowledge- A measure of understanding as to what a brand stands for. g

Differentiation multipied by Relevance =Brand Strenghth If there is no point of difference, a brand value will be low. The Y&R model hypothesise that a new brand with ambiton to become strong must start by developing a point of real differentiation .conversely a loss in differentiation is usually the first sign that a strong brand is fading.
Relevance comes next, unless a brand is relevant to significant segment, it will not attract a large customer base. Ferrari and Jaguar are very high in differentiation but extremely low in relevance. Brand Strength It represents differentiation multiplied by relevance.the logic is that a brand must have both characteristic in order to be strong.

Esteem multiplied by Knowledge=Brand Stature Esteem combines perceived quality with perceptions of a growth or decline in popularity. on average, esteem is largely based on perceived quality. but there are brands for which a decline or growth in popularity affects esteem. Knowledge indicates that customer not only is aware of the brand but also understands what the brand stand for.the true understanding of the brand is culmination of brand building effort. Unlike awareness, it is not simply built by exposures; rather it is generated by real customer intimacy with the brand.

Comparing Esteem and knowledge Comparing a brands esteem with its knowledge often provides some important insights.for instances, some brand rank higher in esteem than in knowledge. this means that relatively few people understand what the brand stand for but those who hold it in high regard. A brand in this situation is likely to have some unrealized potential which it may or may not be poised to take advantage of it can find a way to expand knowledge.
Conversely a brand may have knowledge but low esteem. this means that more people know what the brand stands for,but relatively few hold it in high regards.e.g. MTV ,cigarette and alcohol brands. High stature brand such as coke, Hallmark considered to have a rich heritage and identity.
Interbrand's Top Brands

Interbrand,a
UK-based branding cosulting company, used a very different approach to identify the strongest brands in the world.its asset of crieteria,chossen subjectivity, included the business prospects of the brand and brands market environment, as well as consumer perception. 500 brands were evaluated based on 7 crieterias

1.Leadership This crireria reflects economies of scale for the first place brand in communication and distribution,as well problem also brand have in maintaining distribution and avoiding price erosion. 2.Stability Long-lived brands with identties that have become part of the fabric market-and even the culture-are particularly paowerful and valuable.

3.Market Brands r more valuable when they r in markets with growing or stable sales levels and a price structure in which successful firms can be profitable 4.International Brands that r international are more valuable than national or regional brand in part because of economies of scales .

5.Trend The overall long term trend of the brand in terms of sales can be expected to reflect future prospects. A healthy growing brand indicates that it remains contemporary and relevant to consumers. 6.Support Brands that have received consistent investment and focused support r regarded as stronger than those that have not.However quality of support should be considered along with level of support.

7.Protection The strength and breadth of a brand`s legal trademark protection is critical to the brands strength.
The Brand Equity Ten

The ten measure were chosen on the basis of 4 criteria set forth A)Loyality measures 1.Price premium 2.satisfation/ Loyality B)Perceived Quality/ Leadership Measures 3.Perceived Quality 4.Leadership/Popularity

C) Associations/Differentiation Measures 5.Perceived Value 6.Brand Personality 7.Organisational Association D) Awareness Measures 8 Brand Awareness E) Market Behavior Measures 9.Market price 10. Market price and Distribution Coverage

1.Price premium A basic indicator of loyalty is the amount a customer will pay for the brand in comparison with another brand offering similar or fewer benefits. In measuring price premium, it is useful to segment the market by loyality.e.g. the market might be divided into loyal buyers of the reference brand, customer who r brand swithers,and noncustomers. Each group,of course, will have very different perspective on the equity of the reference brand.

The
price premium measure is defined with respect to a competitors or a set competitors, who must be clearly specified. a set of competitors is usualy prefered for measurement, because the brand equity of a single competitors can decline while eqity of other competitors remains stable.

2.Customer satisfaction/ loyality Satisfaction is a direct measure of how willing customers are to stick to a brand. Problem/ Cautions An important limitation of satisfaction measures is that they dont really apply to noncustomers.thus,there is really no measure of the extent of brand equity beyond the customer base

3.Perceived Quality Perceived quality can be measured with scale such as High quality versus shoddy quality Best in category versus worst in category Consistent quality versus inconsistent quality Finest quality versus average quality versus inferior quality

4.Leadership and popularity Leadership has 3 dimensions. first, it reflects in part the `number one`syndrome.the logic is that if enough customers are buying into the brand concept to make it the sales leader, it must have merit. Second, leadership taps the dynamics of customer acceptance. third it can also tap innovation within a product class-i.e. whether a brand is moving ahead technologically.

5.Value The value propositon,which usually invoves a functional benefits,is basic to the brand in most product classes.if the brand does not generate value it is vulnerable to the competitors. Brand value thus can be measured by the folloeings Whether the brand proves good value for the money Whether there is a reason to buy this brand over others

6.Brand personality For some brands,the brand personality provides links to the brands emotional and self expressive benefits as well as a basis for brand customer relationships and differntiation. Candidate scales might include the following Does this brand have a personality? Is this brand interesting? I have a clear image of the type of person who would use the brand. This brand has a rich history.

7.Organizational Associations It is particularily likely to be factor when the brands are with respect to attributes, when the organization is visible or when corporate brand is involved. To tap the brand as organization, following scale could be considered This brand is made by an organization I would trust. I admire the brand X organization. I would be proud(or pleased) to do business with the brand X organization.

8.Brand awareness It reflects the presence of the brand in the mind of customers. it can be driver in some categories, and is usually has a key role to play in brand equity. Brand awareness reflects both the knowledge and the salience of the brand in the customers mind
Brand Identity Prism

Physique
Relationship
Personality
Culture
Reflection
g
Self Image

1.Physique It is made of a combination of either salient objective features or emerging one. Physique is both the brand`s backbone and its tangible added value. 2.Personality A brand has a personality of its own.By communicating, it gradually builds up character. The way in which it speaks of its products or services shows what kind of person it would be if it were human

3.Culture A brand has its own culture, from which every product derives. The product is not only a concrete representation of this culture, but also the means of communication. 4.Relationship IBM symbolizes orderliness whereas Apple conveys friendliness The relationship aspect is crucial for banks, banking brand and service in general.

5.Reflection Brand for young people! For fathers! for show-off! For old folks!.since its communication and its most striking products build up over time,a brand will always tend to build a reflection or an image of the buyer or user which it seems to be addressing. 6.Self image
Building Brands
Brand Building Task
Create Visibility
Build associations Create differentiation

Brand Building Develop deep Relationship
Brand Building
Implementation of
brand strategy usually focuses on creating(or enhancing) visibility, brand associations, and deep customer relationships. each of these task is guided by brand identity and brand position. The power of visibility is often underestimated. Brand such as coke have developed dominant market positions largely on the basis of sheer presence.
Brand Building
Such
visibility not only can stimulate consideration at every purchase, it can also affects perceptions. A brand such as Intel is given credit for leadership,success,quality,and even excitement and energy , mostly because of its visibility.
Brand Building
Visibility has several components, including recognition(have u heard of this brand),unaided recall(what brands do u know) and top of the mind status(what is the first brand that comes to your mind)in the consumer buying process and brand attitude structure. The relative importance of each will depend on the competitive context. for a small or emerging brand in a big market, recognition might be major objecti ve.in other situations, recall is more important in building strong brand.
Brand Building
Creating a deep relationship-Find customers sweet spot Developing a deep relationship with a segment of customers is usually much more important than sheer nos. might suggest. Not only do loyal committed customers influence others, but they provide a stable sales base. Not all brands can create a large core group of committed customers, but for those that can, it can be a significant asset.
Brand Building
The customer Relationship Model Brand
Brand Image Brand Identity Value Proposition Brand Position Possessions Sweet Spot Activities and Interest Values and Beliefs
Customer Self concept
Driving Idea
Brand Building programs Deep Relationship
Brand Building
A brand cannot develop deep relationship without a rich insightful understanding of the customer. The need is to find the customers sweet spot, that part of his or her life that represents significant involvement and commitment and/or express who they are-their self-concept. One way to find sweet spot is to look at existing committed customers. Why do such people have such strong attachment to the brand? it also helps to use qualitative research that is designed to look beyond the obvious to find deeper motivations.
Brand Building
The key is to learn customers as as individuals rather than about the customers as groups. 2.Value and Beliefs A customers set of values and belief represents the essence of that person, what he or she stands for. 3.Activities and Interest A brand can connect by becoming integral part of activity and interests and delivering exceptional functional benefits
Brand Building
Driving Idea A good driving idea will precipitate programs that Built the brand by creating visibility , associations, and relationships. Resonate with customer Break out of the clutter. driving idea is inspired by customer sweet spot.
How Sponsorship builds brands

Sponsorship has potential to contribute to brand building in a variety of ways, several of which are unique to sponsorships 1. Mobilize the organization 2. Provide an experience 3. Demonstrate new products/technology 4. Create brand exposures 5. Develop brand associations 6. Become part of an event/customer bond

1.Mobilizing the organist ion for brand building Both the process and the result of that ref a brand building efforts often have a key payoff internally to employees and other brand partners, as well as externally to customers Employees and other brand partners can receive emotional benefit that result from pride in being associated with the sponsorhips,as well as link between the sponsorship and their own lifestyle and value

2.Providing an experience for customers An event experience can provide a customer with unique opportunity to develop a link to the brand and its organization. simply providing customers with an event experience, especially when the event is prestigious, says a lot about the brand and its organization. 3.Demonstrating new products and technology New product or technology sub brand can be a silver bullet for the brand, representing the brand identity to the target audiences. Thus a new product or technology might reflect a brands ownership of a customer benefit, or show that the brand is innovative or customer driven.

4.Creating Brand Exposure Often ,the cost of a sponsorship can be justified solely by the brand name exposure achieved through event publicity or signage. One way to measure the effect of this exposure is to conduct pre-event and post event surveys of brand awareness. A host of examples show that awareness increases substantially as a result of a sponsorship, especially when brands follow up the sponsored activity with other marketing activities.

5.Develop Brand Association
Sponsored Property (World Cup) Desired asso. (global, Excellence)
Brand (Master Card)

6.Becoming part of an event/Customer BondThe Affiliation effect For almost any sponsored event,team,or other property there is a esgment of heavily involved people who make time for activity and are knowledgeable and current about it. The sponsored property may be a signiicant part of their lives and a vehicle to express their identities
factors might predict when an affiliation effect could occur.first,the brand likely would need to be tightly associated with a named team or event over an extended time. Second,the activity would have to be an involving part of people`s lives. Indicators of such involvement might include attendance levels, the tendency to follow news about the property, and making the involvement visible to others so that it becomes a badge
The seven keys of Effective Sponsorships

1.
2. 3. 4. 5.
6.
7.
Have clear communications objectves Be proactive Look for an exceptional fit Own sponsorships if possible Look for publicity opportunities Consider multiple sponsorship payoffs Actively manage the sponsorship
Brand Building beyond Advertising

1. 2. 3. 4. 5. 6. 7. 8. 9. 10.
Clarify the brand identity, value proposition, position Find the sweet spot Find the driving idea Involve the customer Surround the customer Target Break out the clutter Link the brand building to the brand Strive for authenticity and substance Stretch the brand building program

1.Clarify yours brand`s identity, value proposition, and position A clear brand identity with depth and texture will guide those designing and implementing the communication programs so that they dont inadvertently send conflicting or confusing messages to the cutomer Both Nike and Adidas saw brand building effectiveness improve markedly when they review and sharpened their brand identities

2 Find the sweet spot A brand building program should strive to understand the customers in depth and their spots, those elements that are central to their lives and selfconcepts. Finding a sweet spot and a way to make the brand a part of it is the route to a deep relationship and a core group of committed loyal customers. Maggie's passion for cooking was the sweet spot for their loyalist group.

3.Find the driving Idea Find the driving idea, a concept that will build the brand by resonating with customers and breaking out of the competitive clutter. This driving idea should become a hub or central concept around which a set of coordinated brand building programs can be developed. The source of driving idea can be the customer and an identified sweet spot or it can be brand(personality,the symbol, or the product itself)

4.Involve the customer Relationships are strengthened when the participants become actively engaged and involved. Consumer weigh prior interaction with a brand more heavily than subsequent information about it. Addidas street ball challenge

5.Surround the customer Surround the customer with a set of mutually reinforcing brand building program like those of Maggi,Nike,or Mastercard. There is a natural temptation to manage each brandbuilding approach separately, but research in a variety of contexts has shown that multiple media are synergistic rather than additive There can even be more than one lead vehicle- Nike for example, uses media advertising, endorsements from top athletes and Nike town.

6.Target Brand building needs to target the customer or segment in order to resonate; most brand start to become diffuse when the segmentation strategy gets fuzzy A balance must be found , however, between being so focused that the brand lacks a wide appeal and so broad that the brand mean nothing. Amazons e-mail communication- skillfuly tailor a message to an individuals

7.Break out of the clutter There is a clutter not only in the advertising context but also in virtually all alternative brandbuilding approaches. A brand needs to surprise and perhaps even shock the consumer in a positive way, whether implementing familiar programs in an innovative way or by creating new program Nike town, Addidas street ball challenge.

8.Link the brand building to the brand To build strong brands, the execution needs to be brilliant in all respects; good isn`t good enough. But brilliance needs to be linked clearly to the brand, rather than separate force that overwhelms it. Advertising practitioners are too familiar with having breathtakingly creative ads that are remembered and even talked about even though few can recall the involved brand.

9.Strive for authenticity and substance Authenticity is a powerful brand association, and one test of the brand building programs is whether they contribute to the brand`s authenticity. The position and identity elements should be communicated in a way that attaches genuine feeling to the brand and makes it a legitimate owner of the desired association. g

10. Stretch the Program- Give it legs A brandbuilding program can be limited by how many people are exposed to it. The challenge is to leverage it, to give it legs beyond the core segment One way is to create mini programs, Another is to provide reminders of the programs giveaways, free samples, promotional items or e-mail message.

Product and Brand Management: BY: Kedareswar Panda Faculty Marketing & Soft Skill

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PRODUCT AND BRAND MANAGEMENT

BY: Kedareswar Panda Faculty Marketing & Soft Skill

New Product Development

Is the idea worth Considering?

Marketing Strategy Development

Product Development Have we got A technically and Commercially Sound product?

Market Testing Have product Sales met expectations/?

Commercialization Are product sales Meeting Expectations?

Can we find Cost-effective Affordable Marketing Strategy?

Will the Product meet Our profit Goal?

Send the idea Back for Product Development?

Modify the Product or Marketing Program?

New Product development

New Product development

New Product development

New Product development

New Product development

New Product development

New Product development

New Product development

New Product development

New Product development

New Product development

New Product development

New Product development

New Product development

New Product development

New Product development

New Product development

New Product development

New Product development

New Product development

New Product development

New Product development

Product- Basic concept

Role of product Manager

M&d Ad agency Media

Product managementMeaning and Definition

Product managementMeaning and Definition

Product managementMeaning and Definition

Objective of Product Management

Objective of Product Management

Product line and Product mix

Product line length

Managing New Product Opportunities

Managing New Product opportunities

Managing New Product opportunities

Objectives of marketing planning

Objectives of marketing planning

The planning process

The planning process

The planning process

Steps in the planning process

Steps in Strategic Brand Management

The Role of Brands

Offer legal protection

The Role of Brands

What is Brand Equity?

Brand Equity Components

Familiarity-liking Brand awareness

Other brand assets

Brand customer Relationship

Value Proposition Functional Emotional Self expresive Benefits Benefites Benefits