BRAND MANAGEMENT

What is a Brand?

A brand is a promise. It is both functional and

emotional. It is the art and science of

creating “mind space” and shelf space.

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What is a Brand?

A brand is a name, term, sign, symbol, or design which is intended to identify the goods or services of one seller or group of sellers and to differentiate them from those of competitors.

What is a Brand?

A slogan?A typeface?A sound?An image?A logo?A personality?A jingle?

BRANDS ARE LIKE PEOPLE

They have: A name A personality / human characteristics A reputation People can have feelings towards them

Can everything be branded? Ultimately a brand is something that

resides in the minds of consumers. The key to branding is that consumers

perceive differences among brands in a product category.

Even commodities can be branded: Coffee (Nescafe), bath soap (Lux), flour

(Ashirwad), salt (Tata),pickles and even water (Bisleri)

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Can anything be branded?

Physical goods Services Retailers On-line product On-line service People Organization Sports, Arts, Entertainment Geographic location Ideas

An Example of Branding a Commodity1.8

De Beers Group added the phrase “A Diamond Is Forever”

Brand Decisions

A brand communicates the following six levels of meanings Attributes Benefits Values Culture Personality User

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Why do brand matter?Organizational perspectiveMeans of identification to simplifying

handling and tracing.Means of legally protecting unique

feature.Signal of qualityMeans of endowing products with unique

associations.Sources of competitive advantageSources of financial returnsEnhancing loyaltyIncreasing Market share

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Why do brand matter?Customers Perspective

Identification of sources of productAssignment of responsibility to product

maker.Risk reducerSearch cost reducerSymbolic deviceSignal of qualityPromise or bond with product or maker

Reducing the Risks in Product Decisions

Consumers may perceive many different types of risks in buying and consuming a product:

Functional risk—The product does not perform up to expectations.

Physical risk—The product poses a threat to the physical well-being or health of the user or others.

Financial risk—The product is not worth the price paid.

Social risk—The product results in embarrassment from others.

Time risk—The failure of the product results in an opportunity cost of finding another satisfactory product.

What is a product?

A product is any offering by a company to a market that serves to satisfy customer needs and wants.

It can be an object, service, idea,etc.

A Product is made in a factory….a Brand is

Bought by a customer

A Product can be copied…a Brand is Unique

A Product is quickly outdated…a Brand is Timeless

A brand is therefore more than a product, as it can have dimensions that differentiate it in some way from other products designed to satisfy the same need.

"Our brand is a mark of trust." Walter, Chairman and CEO,ofCardinal Health

Product Vs Brand

Core Product Actual Product Augmented

Product

Functional Benefit User imagery Organizational

Association Brand personality Symbol Brand- customer

relationship Country of origin

Product Brand

Product Vs Brand

Brands differentiate Products Fairness Creams : Fair & Lovely & Ponds

Dream Fairness Coconut Hair Oil : Parachute & Dabur Vatika Cola: Coca Cola & Pepsi---------------------------------------------------Products largely undifferentiated:

Product choice function of Convenience/ Availability or Price

Petrol : BPCL &…. ATM : HDFC & HSBC &….. Mineral Water : Bisleri & Kinley…..

Evolution of Brand Management: Stage1

Role of Pdt > Brand; Focus on providing effective Product, as

a Problem Solution Critical functions : production/

engineering/ distribution/ logistics Purpose of Brand- Product

Identification/ trademark; usually a family name/ manufacturer’s name

Stage 2: Classical/ Functional Marketing

Competitive Market Scenario Thrust on Product Differentiation---

Competitive Advantage Eg Soaps Market – Market Segmentation based

on Pricing: (Economy, Popular, Premium) Product/ Functional Benefits….Need

Segments(Beautiful Skin-Lux, Clean Hygienic-Dettol, Healthy skin- Lifebuoy,….. Fair Skin- FairGlow)

Product Ingredients ( herbal- Chandrika, Lime- Cinthol, Glycerin- Pears)

Target Segment ( Male- Denim, Kids- Doy, Babies- Johnson’s)

Stage 2: Classical/ Functional Marketing

Positioning ---- Target Segment Lux- Beauty Soap for Filmstars-----

aspiration to middleclass Housewives Dove- Not Soap but Skincare… with

Moisturizers---Older, Upper Income women Fairglow- Fairness---Users of other Fairness

pdts? Product Innovation & Brand Building, Brand focused on emphasizing Product

Benefits/ Functions/ attributes, Brand is the halo round the product

Stage 3: Consumer Orientation/ Benefit Marketing

Competition, Media Revolution, Globalization..no boundaries

Emphasis on understanding the Consumer MIND

Emotional Benefits….. Consumer Insights… Brand Associations

Mobile phones-Connecting people.. Nokia Fresh Breath…Confidence- Close Up

( Closeness) Durable paints..Festivity- Asian Paints Savings…. Security- ICICI (Sindoor) Brand overshadows the product, Brand-

BONDING with consumers..Focus on BRAND IDENTITY…BRAND COMMUNICATION

Stage 4: Experiential Marketing

Flood of offerings, Plethora of choices Products fight for MINDSPACE of

Consumers… no product boundaries Brands takes product to new platform…

provide an experience Consumption is a holistic EXPERIENCE eg:

Cars- The Mercedes Experience Brands provide an experience, Products

provide a service

Experiential Marketing:Application, Scope

Experiential Products- Books( Cross Word), Music- (Planet M)

Luxury Products- Cars Lifestyle Products-Cigarettes( Wills-

Togetherness…Classic- King), Alcohol (Bacardi)

Fashion Products- (Gucci, CK, Armani..) Retail Products- (Coffee- Barista, McDonalds-

Happy kids,) Service Products- Banks, Hotels … Airlines Experiential Advertising- Cadbury’s Experiential Marketing- Jet Airways- Caring

Experiential Marketing - What?

Sense: Sight-Sound-Taste-Scent-Touch: Tide, Orange, Fashion collections- Revlon,

Samsung mobile, Lakme colours Feel- ( Moods/ Emotions) ICICI-

Sindoor..Tera ghar/ Mera Ghar, Think- ( Surprise/ Provoke) Movies Act-( Physical Behavior) Dominoes- Hungry

Kya? Relate- ( Membership/ belonging) :Harley

Davidson, Archies Cards

Experiential Marketing- How? Bernd Schmitt

Experience Providers: Communicaion/ Advertising Identity Related( Logo/ name/Signs-

Visual/ Verbal)- Britannia Product Presence (Design/ Pkg)- kodak –

YBR,Mercedes –White, Co- Branding (Events/ Sponsorship)-

Lakme Fashion week, Femina miss India Spatial Environment ( Retail/

Office/Factory)- Barista, Big Bazaar. Web Site/ Electronic Media-

Encyclopedias.. , Facebook People

Stage 5: New Age Marketing

Technology & Communication Revolution-easy REACH, no physical barriers LinkedIn ,Twitter, FB

Mass Customization- Knowing what The consumer wants.. Able to deliver it to him

IT based products- Music, Magazines, Education

Top end/ high value products- Cars, Furniture Service Products- Investments,

Insurance..Call Centers Boutique products- Designer wears Specialty Products- Paints,

Brand Space

Same Space:- Fight for Market Share Different Image- Coke – Real Thing &

Pepsi- Younger Generation Same Image/ Forced Differentiation-

Sprite & Limca- “Cool Guy” Different Space

Same Image- Godrej & Tata – Trust, Quality, Reliability

Types of Brands

Functional Brands Image Brands Experience Brands

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Branding Challenges & Opportunities

Knowledgeable consumers Growth of private labels Brand Proliferation Media Fragmentation Increased competition Increased costs of introducing new

product or supporting existing product. Greater accountability

Brand Cannibalism: When two brand in the same product line, offered by same player target same market segment and compete with each other by eating away the market share without adding any value to the marketer.Example: Hero Honda Glamour and Hero honda Splendor

Brand proliferation: when one company introduce new brands in the same product lines and hence try to cover each and every market segment for that product line.example: HUL has different brands in shampoo product line offering a wide range of choice for customer of every segment.

Overcoming Challenges

Brand Equity Brand Loyaltyo Brand Switchero Habitual buyerso Switching cost loyalo Friends of the brando Committed

3 C’s of Branding

Clarity-Companies that have a strong brand truly comprehend their unique promise of value and how it differs from those of their competitors

Consistency- They are always what they say they are.

Constancy- A brand is considered strong if it is constantly under public eye or media attention. It is great to have a product message that is clear and consistent, but it won't be as effective if the product is not always visible to the target market segment.