Brand Management

Historical Evolution of Brands

Branding was Stamping for Identification Animals were "Branded" for identification of their Ownership Branding was defined by Oxford Dictionary as, 'to mark indeilbly as proof of ownership, as a sign of quality, or for any other purpose' Hence Branding began as a legal issue even on products, however is soon became important in thatSource of Product became tracable Quality was assured Consumer loyalty to a producer became legitimate and expected

Historical Evolution of Brands

Rapid rise of urban growth from 1960s and growing distance between producer and consumer led to rapid growth in Branding The growth was supported by advent and proliferation of MASS MEDIA and ORGANISED RETAILING. The former facilitating branding and the latter necessiating it From 1980s Intangible Value addition has come to be a chief value building element and hence today all the more importance of Branding

Branding
 Branding is a process of brand development and its management (which includes issues as Brand Extension, Brand Health Monitoring, Brand Rejuvenation & the like)  Brand is a collection of associations, commercially material with regard to a commercial entity (which can be Product/productcategory/firm/Places /personality & like entities)

Nature of Chief Associates Used

Associate Form Verbal Aural Visual Packaging Symbols Analogies Metaphors Tone of Voice Structural Example Schweppes Martini melody Rise in Old Spice Simplicity Boost Of Brand Duckbag, Dulux Dog Building Famous Personalities, Celebrities Swiss Craftsmenship, Americanness TSB, National Geographic, Doordarshan B&H

Modified from Brand Typology by Langmaid and Gordon 1988

Use of Brand as a Device

Brand is useful as a1. 2. 3. 4. 5. 6. 7. Sign of Ownership functional device Risk reducer Differentiating device Symbolic device Legal device Strategic Device

Brand Selection Nuances, a viewSignificant Perceived Brand Differences Minor Perceived Brand Differences Extended Problem Solving Tendency to Limited Problem Solving Dissonance Reduction Limited Problem Solving

High Low Consumer Consumer Involvement Involvement

Typology of Consumer Decision process, adapted from Assael, 1987

Two Sides of the Lonely Coin

Brand Edifice Surreal Edifice Real Edifice ** Brand Equity Surreal Edifice Brand Essence Brand Identity Brand Personality Projection Efficacy Projection Equity Real Edifice Total Product Value ** For all business purposes, perception is the reality

Perceptions of Quality
Quality is free Philip Crosby Quality and the Image of Quality Promises for Ages Quality Positioning for all Products ? Quality, a Life Style ?

Perceptions of Quality
Quality is free Philip Crosby Quality and the Image of Quality Promises for Ages Quality Positioning for all Products ? Quality, a Life Style ?

Brand Loyalty
The strength of the consumers preference for a brand corresponding to his readiness or otherwise for using a competing brand can be termed as one definition of Brand Loyalty Brand Loyalty is often the core strength of the brand and often a major bearing variable in determination of brand equity Consumers need a reason to change Consumers donot need a reason to change

Brand Awareness
Without Awareness, Where is the Brand ? Top of the Mind Recall Unaided Recall Aided Recall Faint Recall Unaware of the Brand

Brand Loyalty
Levels of Brand LoyaltyCommitted Buyers Likes the Brand, considers it his friend Satisfied buyer with switching costs Satisfied/Habitual buyer , no reason to change Switchers - Price Spotters, Variety Seekers, Indifferents David Aaker (The Loyalty Pyramid)

(Mim Ryan assesment : The first step in Image managements, Tokyo Business Today Sep, 1988, PP. 36-38, numbers are approximate)

Landors Image Power

The Most Powerful Brands in the USCompany/Brand Coca-Cola Campbells Pepsi-Cola AT&T McDonalds American Express Kellogs IBM Levis Sears Rolls Royce Nissan 63 77 65 64 58 58 62 46 66 63 59 63 43 50 58 Share of Mind Index/Awareness 78 60 67 64 Esteem Index Image Power Rank Order 68 1 67 61 4 50 6 7 65 9 10 30 169 2 3

Ages of best known Brands

Age of Brand Over 100 75 to 99 50 to 24 25 to 49 15 to 24 Under 14 years years years years years years Percentage of 4,923 Brands Mentioned 10 26 28 04 04 03

Source- Adapted from Leo Bogart and Charles Lehman, What Makes a Brand Name Familiar ? Journal of Marketing Research February 1973, PP. 17-22

The Leading Brands - 1925-1985

Product Bacon Batteries Biscuits Breakfast Cereal Cameras Canned Fruit Chewing Gum Choclates Flour Mint Candies Paint Leading Brand, 1925 Swift Everyday Nabisco Kellogg Kodak Del Monte Wrigley Wrigley Gold Medal Life Savers Sherwin-Williams Current Position 1985 Leader Leader Leader Leader Leader Leader Leader No. 2 Leader Leader Leader

The Leading Brands - 1925-1985

Product Leading Brand, 1925 Prince Albert Gillette Singer Manhattan Crisco Ivory Campbell Lipton Goodyear Colgate Current Position 1985 Leader Leader Leader No. 5 Leader Leader Leader Leader Leader No. 2 Pipe Tobacco Razors Sewing Machines Shirts Shortening Soap Soup Tea Tyres Toothpaste
Group, 1987

Source Thomas S Wurster, The Leading Brands: 1925-1985, Pespectives, The Boston Consulting

How to Achieve Awareness

Communicate Intensely Be Different, Memorable Involve a Slogan or a Jargon that is easy to get on lips Symbol Exposure has to be adequate Publicity and PR ought to be intensely employed Event Sponsoring and Event Association Consider Celebrities Recall Requires Repetition

Limits of Awareness
Awareness by itself does not lead to purchase Awarness can be increased through controversy but the same is found not to useful Even uniqueness of awareness generation does not help unless backed by proper value offer Awareness has to continously kept up and is not self sustaining Higher the impulse purchase, higher the need for Top of Mind Awareness

Brand Loyalty, a viewHeavy category users use a variety of brands Big brands are bought more frequently than smaller Brands Brands most loyal customers are least profit yielding since they buy the brand infrequently Any Brands easy new converts are the consumers of competing brands who buy them infrequently Ehrenbergs emperical work, 1993

Loyalty vs Profit Pyramid

% of Category Volume Loyalty

High Profit Medium Profit Low Profit No Profit

83% 14% 3% 0

16% 16% 16% 52%

High Higher Highest V Low / Zero

% consumers of a product category

Yogurt Category profit and loyalty matrix of US, derived from Hollander 1995 and Ehrenberg 1993

Strategic Value of Brand Loyalty

Enhances brand equity and hence the value of the firm Reduced Marketing Costs Trade & Retail Leverage Attracting new customers Brand Awareness created Re-assurance to new customers Time to respond to competitive threats

Brand

Definition/s

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 a group of sellers and to differentiate them from those of competitors Philip Kotler
A successful brand is an identifiable product, service, place or person, augmented in such a way that the buyer or user perceives relevant, unique added values which match their needs most closely. Furthermore, its success results from being able to sustain these added values in face of competition Leslie & Malcolm, Creating Powerul

Brand

Definition/s

A Brand is a distinguishing name and/or symbol (such as a logo, trade mark, or package design) intended to identify the goods or services of either one seller or a group of sellers, and to differentiate those goods or services from those of competitors David Aaker

Brand Demise ?
Downtrading is on the increase Waiting for Discounted Merchandise Falling Brand Loyalty and increasing switches Increasing Brand Parity Increasing Brand Clutter Premium brands coming down to earth High rate of Brand Failures Increase in use of Promotions over Developing Strong Brands Retailers Store Brands and Private Labels are going strong

Brand Sayings
A Product is something that is made in a factory, a brand is something that is bought by a customer. A product can be copied by a competitor, a brand is unique. A product can be quickly outdated; a successful brand is timeless Stephen King WPP Group, London

Life and Death of Brands

Brands have no right to exist. They are not guranteed by the constitution. There is no economic law that expects them to fuel supply or demand. They carry no inbred immune system. It is possible to sell a product or service without creating an elaborate brand; in fact, it happens all the time. It would take some major adjustments, but global economies would eventually survive if brands were to fall out of sight and never be heard from again. While brands admittedly become the foundation of our commercial markets, they are, hard as it might to be to accept, dispensable. Lynn B Upshaw

Constituent Categories of the Product

ProductFunction, Efficacy, Features Design, Packaging, Price,

Services- Before Sales Service, After Sales Service Delivery, Availability, Advice, Finance, Warrantees, Gurantee, Add-ons BrandPerceptions on issues (like Ethical reliabililty, Quality, etc.) with regard to Corporate Brand, Product/s Brand

Commodity to Brand

Price Differentiation / Margins

Intangible Value Addition

Product/Image Differentiation

illusion of Truth
Consumer Preference Tests on Diet Coke & Diet Pepsi Blind Tests Open Branded Test Prefer Pepsi 51% 23% 44% 65% Prefer Coke Equal/cannot say 5% 12% Consumers Experience the Power of the Brand

Brand Equity
Brand Equity is a set of brand assets and liabilities linked to a brand, its name and symbol, that add to or subtract from the value provided by a product or service to a firm and/or to that firms customers David Aaker

Brand Equity
In 1985 Reckitt & Colman acquired Airwick Industries and put on its balance sheet 127 Mn Pounds as financial value resulting from the intangible benefits of goodwill, heritage and loyalty conveyed by the newly acquired brand names In 1988 Rank Hovis Mcdougal put 678 Mn Pounds on their balance sheets as the valuation of their brands In 1988 Nestle and Jacobs Suchard fought for ownership of Rowntrees tangible assets worth 300Mn Pounds but Nestle had to pay for control, 2.5bn pounds. The difference of 2.2 bn pounds was for brands of Rowntrees like KitKat, Polo, Quality Street and After Eight Mints

Issues in Managing Brand Equity

The basis of brand equity Creating brand equity Managing brand equity Forecasting the erosion of equity The Extension decision Creating new names Complex families of names and subnames Brand-Equity measurement Evaluating brand equity and its component assets David Aaker

Worlds Most Valuable Brands

Rank $mn
1 2 3 4 5 6 7 8 9 10

Brand

Valuation in

Marlboro Coca-Cola McDonalds IBM Disney Kodak Kelloggs Budweiser Nescafe Intel

44,614 43,427 18,920 18,491 15,358 13,267 11,409 11,026 10,527 10,499

Financial World Magazine, global survey,

Relevance of Branding
Branding for Producers Branding for Consumers Brands & the Market

Pervasive Brands
Products Services Events Political Parties Personalilties Places Sports

Process of Branding
Segmentation is the classification of the market into groups of consumers on some basis like Class, Gender, Age, Education, Religion, lifestyle and the like it helps focus more and better since consumers also consume images Targeting refers to the conceptual and active efforts put in addressing the selected segment Positioining Having selected the segment and decided to target it, accordingly Images need to be built which in association with many other factors, finally form in the consumers mind, an Image for the company or product, called the Brand Image

Issues in Branding
Brand Positioning Brand Communication Brand Equity

Brand Equity
Provides Value to (by enhancing) Customer Interpretation /Processing Of information Confidence in Purchase Decision Use Satisfaction Firm Loyalty Margins B-Exten. Trade Lev.

Brand Awareness Brand Loyalty Perceived Quality Brand Associations in addition to perceived Quality Brand Assets as Patents, Trade Marks, Channel Relationships and others

Issues in Branding
Brand Extension Brand Rejuvenation Brand Repositioning Brand Architecture Monolithic Extended / Hybrid Free

Issues in Branding
Brand Identity Brand Personality Brand Essence Brand Associations

Issues in Branding
Brands Endorsing Brands Source Brands Retailers Brands Private Lables

Issues in Branding
Corporate Brands Product Brands Product Category Brands Collective Brands Personality Brands Heritage / Historical / Geographical Brands Co-Branding

Issues in Branding
Collective Brands Owned by Government Owned by none but self developed Owned by firms Development of Collective Brand, Collectively

Issues in Branding
Co-Branding Co-Branding Co-promotion Co-communication Co-Branding Dynamics Win-Win Lose-Win Lose-Lose more Stronger gets more weaker gets less Stronger gets less Loser loses more Stronger loses less Weaker loses (Intel & Compaq) (Shell & Fiat Palio) (Colgate free with Ariel) (Oracle with TCS)

Issues in Branding
Brand Leadership -- David Aaker

Variables in Branding
Brand Awareness Top of the Mind Recall Unaided Recall Aided Recall Brand Recognition Brand Unawareness Brand Knowledge Brand Preference Brand Usage Brand Loyalty

Variables in Branding
Brand Assets Brand Evaluation Brand

Brand-Trends
Global Brands Thematic Brands Heritage Brands Empty Brands

Brand Equity

Building Strong Brands

Building Global Brands

Brand Leadership

Designing Brands

Service Brands
Search Services Experience Services Credence Services

Experiential Products Brands

Collective Brands

Thematic Brands

Retailer Brands & Store Brands

Private Labels

Brand Health over Ages

Types of Associations
Product Attributes Intangibles Customer Benefits Relative Price Use / Application User Customer Celebrity / Person Life Style / Personality Product Class Competitors Country / Geographic Area

Brand Name & Symbol

Value of Brand Associations

Help Process / Retrieve Information Differentiate / Position Reason to Buy Create Positive Attitudes / Feelings Basis for Extensions

Psychological Benefits
Product Psychological Benefit
Computer / Security Banking

Feature

Rational Benefit

Bubble Memory

cannot lose work

Job Safety

High Yield IRA

Make High Return

Independence / Financial security Confidence looks Exciting /

Shampoo about Shampoo sexy

Built in Conditioner Full, thick hair

Natural protein

safe to use

everyday Source- Staurt Agres, Emotion in Advertising: An agency view, The

The Measurement of brand associations

List out Associations Investigate the existence and strength of associations Make Absolute Measurements Make Relative Measurements Different techniques as Perceptual Mapping, MDS and other are useful Direct and Indirect Investigations are carried out

Indirect methods of probing associations

Determining Brand MeaningsPicture Interpretation Brand as a Person Brand as an Animal In-depth look at use experience Dissecting the decision process Describing the brand user How brands are perceived differently Personal Values driving choice Free association

Positioning

(Aaker)

Selecting, Creating and Maintaining AssociationsSelf Analysis Brand Attributes Brand Perceptions Competitors Associations Differentiate Target Market Provide Reason to Buy Add Value

Name, Symbol and Slogan (Aaker)

Name should Be Easy to learn Suggest the product class Support Symbol or Slogan Suggest Brand Associations Have no undesirable associations Be Distinctive Be Legally tenable

Name, Symbol and Slogan (Aaker)

Symbols ought toGet into Memory Suggest Associations Suggest Product Class Enhance Awareness Develop positive associations Culturally Enrich the product Slogans are the Spice of Communications

Brand Extensions
Five possible Results of Brand Extensions1. The Brand Name aids extension 2. The extension enhances the brand name 3. The brand name fails to help extension 4. The brand name is damaged 5. The brand is killed Aaker

Brand Extensions
Brand Extensions are successful whenTransferability of skills and competencies to new brand Resources are enough to support an extension There is no clash between the brand essence The extension brings synergy in operations The extension is in related product categories The target segments are same or similar Coherence across communication mix is upheld Product Design coherence adds to brand building

Revitalising brands
Increasing Usage Finding new uses Entering new markets Repositioning the brand Augmenting the Product / Service Obsoleting existing products Extending the brand

Global Branding
Segmenting, Targetting, Positioining, HOW ? Global, Local or Glocal ? Thematic Brands can easily be tailored for the Globe Collective Brand too can easily be made Global Technological products and Product based positioning is easy to take global Life style products in the premium end can easily be branded global Life style products in value for money range are difficult to brand globally Products where intangible value addition is psychological and cultural are difficult to brand globally Products which are Historical are difficult to intangibly augment using

Brand Equity in Aakers conception

Brand Awareness Brand Associations Brand Equity Brand Loyalty Perceived Quality

Other Proprietary Assets

Value of the Brand

Price Premiums generated by the brand Replacement Cost Stock Price owned to the brand Future Earnings Potential Appraising Brand Assets Strategic Value of Brands A Multiplier has to be estimated and agreed upon in most of the above calculations

Personality and Self Concept

Self Image Perceived self image through others Ideal Image Aspirational Image Brand Image

Basis for Segmentation

Geographic Demographic Psychographic Behavioural

Positioning Nuances
Under Positioning Over Positioning Confused Positioning Doubtful Positioning Positioning is always done on the central idea of an ATTRIBUTE/S

Positioning: Styles, Fashions and Fads

Page 305 kotler

Branding
Other Peoples minds are a wretched place to be at Arthur Schepenheur Whats in a name ? Shakespeare So Much for the Brand Image But We all Know . . .
There are Watches and there are Swiss Watches There is Fashion and there is Milan Fashion There are Cars and there are Rolls Royce Cars

What is a Brand ?
Brand is an effective collection of associations in the consumers mind The actual product use, Word of Mouth, Information from print and media and Advertising, all lead to the creation of a brand Branding gives the producer an additional profit and to the consumer an assurance of quality and an Image to consume Branding leads to Product Differentiation even when functional similarity exists

Brands and the Perceptual Space

Consumers mindspace stores perceptions and images about a range of Individuals and Products, we in branding shall be concerned with the conceptual space of images pertaining to the products Jack Trout and Al Ries, the Gurus prescribe strong focused branding as opposed to Umbrella Branding practiced by many Brand Research leads to the collection of data and insights pertaining to the perceptual space of consumers, pertaining to any product/product category

Branding and Attributes

Brand Image to be created has to be around certain attributes consumers would prefer to consume A loss of focus on one or a limited and small no. of attributes leads to Brand diffusion Attribute identification hence is the true beginning of branding Interactive media and the net shall give a new facet to the branding process Do Brands have a living personality ?

Self Image and Brand Image Concept

Every Man and consumer beholds a Self Image, an Image of himself The Consumer also beholds an Aspirational Self Image, an Image of What he aspires to be Attributes which interact and quicken these images to life have been identified by S Sen Gupta Branding needs to bring closer the two images

Brand Extension, Rejuvenation & Alteration

Brand Extension refers to the extension of an existing brand name to a newer product/s Brand Rejuvenation refers to the continual efforts being put to keep up the brand in the consumers consciousness and avoid Brand Clutter Brand Alteration refers to a unique type of rejuvenation where the attribute on which the brand is positioned or the image, is to be changed and hence J

ND

Brand Personality and Attributes

Brand personality is finally constituted of Attributes projected in some specific personalized way Common feelings experienced by Ad. Audience (Plutchik)
Defiant Surprised Enthusiastic Receptive Unhappy Joyful Hesitant Adventurous Affectionate Elated Youthful Macho Trendy Cozy

Books on Branding
1. 2. 3. 4. 5. 6. 7. 8. Marketing Management by Philip Kotler Managing Brand Equity by David Aaker Building Strong Brands by David Aaker Brand Leadership by David Aaker Brand Positioning by Subroto Sen Gupta Strategic Brand Management by Noel Kepferer Brand Warfare by Al Ries and Jack Trout The 22 immutable laws of Branding by Al Ries and Laura Ries 9. Marketing Aesthetics by Brand Smicdt 10. Creating Powerful Brands by Leslie and Malcolm

Thank You Brands