1. Class Slides_brand Fundamentals

8/17/2019 1. Class Slides_brand Fundamentals

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MODULE-1Brand Fundamentals

Prof. Anand Narasimha


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In this Module we will learn about…

• Introduction to Brands- what is a brand, business

significance of brands, needs & benefits, brand awareness

and preference

• Brand Positioning- concepts, types and formats

• Brand Personality -vaues, semiotics, metaphors and

archetypes

• Brand Equity- concepts & formats

• Brand Loyalty- concepts & principes

• Kapferer Brand Identity Prism- framewor! & caseet

• Unilever Brand Key- framewor! & caseet


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"

Understanding the Basics of Branding


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#

How much will you pay for these…


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$

A rock picked up from the street


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%

A rock from the Great Wall of

hina


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A rock from the Berlin Wall


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A rock from the Moon


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ongratulations! "ou #ust branded rocks$


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Introduction to Brands


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A Brand %tory…

*he +airoads

*he Airines

*he uggy hip


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Moral of the %tory

• Brand Marketing is not about products, services or processes

• !t"s about understanding # satis$%ing consumer needs, pro&tabl%

• 'roducts # 'rocesses are onl% t(e means, t(e end is t(e consumer need

• Brands )(ic( lack t(is vision, don"t last


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• *!n our $actories )e make products,

in t(e supermarket )e sell (ope+

- (arles evson, Founder o$ evlon

• *! clot(e egos+

- .ianni /ersace, Fas(ion Designer

• *0e"re not in t(e )atc( business

0e"re in t(e lu2ur% business+

- 'resident o$ ole2


14/1021#3O4!5 in 67879

!s 3O4!5 in t(e cell p(one business9


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In the year 2050,In the year 2050,

water will only be available for drinking water will only be available for drinking

andand notnot for bathing or washing.for bathing or washing.

How will a Shampoo brand still keep itself relevant? How will a Shampoo brand still keep itself relevant?


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What is a Brand&

• :(e uni;ue combination o$ product c(aracteristics andvalues, t(at (ave become attac(ed to a product b%means o$ its name, packaging, advertising, pricing,usage e2perience etc :(ese di


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What is a Brand&

• 5 Brand is a collection o$ images,t(oug(ts and $eelings in person"s mind


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Brand is a 'wo(way )act

*!n return $or %our pre$erence and lo%alt%, )e)ill give %ou a s(ortcut to t(e best purc(asedecision

0e also understand t(at i$ )e scre) up,t(e deal"s o


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>our brand is )(atpeople sa% about it,

)(en %ou"re not t(ere ?e< Be=os, Founder 5ma=on


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'otal Impression of a Brand

BRAN

Price

Products

Name

Pac!aging

Advertising

Promotion

ompetitors

/sers

/sage

0istribution

0ispay

a!er

istory

3nvironment Associations

Peope

4


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Branding

Manage

'erceptions

Drive 5ctions

reate/alue@ $orconsumersAstake(olders


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Managing %our brand marketing

is becoming more and more aboutmanaging everything %our compan%does"

Lee Clow- Founder & Creative Director, Chiat-Day

2"


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2#

Business %igni*cance of Brands

!ype of "ociety "ource of #ealt$

Pre-industria 5and & 5abor

6ndustria 7actories & apita

Post 6ndustria rands & 6deas

% *he rand is the usiness8


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2$

Any other definitions of a rand? Any other definitions of a rand?

Is I!" a rand? #hy$why%not?Is I!" a rand? #hy$why%not?

#hat&s the 'anti%brand& s(hool of tho)ght? #hat&s the 'anti%brand& s(hool of tho)ght?


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2%

Bene*ts+,eeds


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2

Brand Bene*ts

• Bene&t $ul&lls a need"

• Bene&t belongs to t(e brand

• 3eed resides )it( t(e consumer

• Functional bene&ts @ p(%sical, tangible, real

olor, Flavor, C(ape, Ci=e, 'rice

• 3on-$unctional bene&ts @ emotionalAsensor%,intangible, perceived .entle, aring, Ce2%, .lamorous,Mac(o


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2'

Brand Bene*ts

• Motivators @ :(e reason )(% people bu% aproduct t%peAcategor%Coap gets %ou clean 5 pen )rites 5 camera takes pictures

• Discriminator @ Di


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2(

Bene*t Map

•oogne•9reen

•+ich 5ather

•a!e•eans•Price

•acho•:e;y•


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")

' f , d + B *t


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"1

'ypes of ,eeds + Bene*ts

:33=> heath, time, money, popuarity, better appearance,security, praise, comfort, eisure, pride, advancement,

acceptance, en?oyment, sef-confidence, prestige, status.

3> good parents, socia, hospitabe, up-to-date, creative,infuentia, gregarious, efficient, trend setting,

authorities, house-proud.

:A@3> time, money, wor!, discomfort, worry, doubts, ris!s,

embarrassment.

04> e;press their individuaity, resist domination, satisfy curiosity,emuate idos, appreciate beauty, acuireBcoect things,

win affectionBove, improve themseves.

People

(ant to %))


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"2+amples of brands$ads that target the vario)s types of needs?


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""

Brand Awareness- %alience

. )reference


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"#

Brand Awareness . %alience

!'*

+top-of-mind,

A(areness

Unaided

A(areness

Aided A(areness

!otal A(areness


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"$

Brand Awareness . %alience

• Brand 5)areness 'ercentage o$ consumersAprospects )(o

recall t(e brand )it(in a categor%

• :OM" is t(e critical measure spontaneous"recallA top mentions

• Brand CalienceBrands t(at come to mind at t(e time o$

purc(ase

• C(are-o$-mind"


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"%

Brand )reference

• 're$erence C(are'ercentage o$ consumers intending to bu%" %our brand in t(eir

ne2t purc(ase 5lso kno)n as stoc(astic s(are"

• Market C(are

- 'ercentage o$ consumers )(o actuall% bu% %our brand

- Brand sales as a percentage o$ total categor% sales- B% volume unitsAtonnageGH B% value upees A IG

• Market C(are is a subset o$ 're$erence C(are

What can we conclude :

If a brand’s preference share & market share are nearlyequal?

If a brand’s preference share is signicantly higher

than its market share?

B d / t i 'h


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Brand /epertoire 'heory 0'he %hortlist )rinciple

• 'eople don"t al)a%s consider onl% one brand in a categor% :(e% (ave a s(ortlist o$ acceptable brands to JG,

)it(in )(ic( t(e% bu% 5 brand repertoire"

• Brands ma% remain, enter or e2it t(is s(ortlist over time

• Brand :ask

- Enter repertoire" and sta% in it- Ctimulate (ig(er

s(are" o$ repertoire purc(ases


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"'

Brand 1ecision Matri2

3

7

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"(

Brand )ositioning


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#)


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#1

Brand )ositioning

• /niue, cear, desirabe sot that a brand occupies in the consumers mind, reative to competing brands.

A*C

=ey enefit


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#2

Unile3er 4ormat

• 0(o am !9

• 0(% bu% me9

0(at do ! do t(at ot(ers don"t9

0(% s(ould %ou believe me9


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#"

• 0(o am !9 :(e Babe-Magnet

• 0(% bu% me9 0(at do ! do t(at ot(ers

don"t9 ! make regular gu%s se2uall%

irresistible to (ot %oung)omen

0(% s(ould %ou believe me9 Because m% $ragrances are so

seductive and tempting

"et&s do one more


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##

Grey5s 4ormat

K> Brand 3ameG is a product descriptorGt(at is better t(an competitionG,$or target groupG, because core bene&tG,

as a result o$ supportG


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#$

olgate Dental ream is a $amil% toot(pastet(at is better t(an ot(er $amil% toot(pasteslike 'epsodent, $or active gro)ing kids, because it makes t(eir teet( strongeras a result o$ its calcium $ormulation anddentist recommendation

"et&s do one more


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#%

6ne Word 78uity 96$W$7: ; %aatchi .%aatchi

• 0(at lies at t(e (eart o$ t(e brand90(at makes it uni;ue9

• 5 single )ord to encapsulate t(e essence" o$t(e brand

• ombines brand attributes # bene&ts, values

# personalit% to arrive at a single, simple idea

• 'rovides a blue-print $or brand marketing

olvo- "afety &errari- Edgy


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B*#- riving Pleasure

#hat are the -#+&s of some other brands?


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#'

&UN.!I'NAL REALI!/

=ey reason-to-beieve this.

E*'!I'NAL E0UI!/

+oe of the brand in my ife.BRAN .'RE

ore benefit that the

brand offers me.

BRAN .'N"!RU.!

BRAN .1ARA.!ER

alues t$at t$e 2rand

stands for)


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#(

&UN.!I'NAL REALI!/


Proven

germ-3illing action

E*'!I'NAL E0UI!/

+oe of the brand in my ife.

Keeping you

4 India $ealt$y

BRAN .'RE


brand offers me.

Protection

from germs

BRAN .'N"!RU.!

BRAN .1ARA.!ER


stands for)

• 1ealt$y• "mart

• 1ard(or3ing• Efficient


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$)

&UN.!I'NAL REALI!/


Refres$ing5 uplifting

fragrances

E*'!I'NAL E0UI!/

+oe of the brand in my ife.

Unstoppa2le *asti

BRAN .'RE


brand offers me.

Long-lasting

&res$ness

BRAN .'N"!RU.!

BRAN .1ARA.!ER


stands for)

• &un• 6esty• !ri2al• !rendy


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$1

"et&s do a rand onstr)(t

for another brand

)ositioning


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$2

)ositioning Across time for a singe brand D E+epositioningF

> Across consumers for a singe brandat a given time

5u;ury 7ashion :port

ome +emedy

edicine hest

eath 7ood

0inning *abe

onfidence onvenience


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$"

'ypes of )ositioning

• By Application + 6ccasion

• By )roduct Bene*t

As a 0essert 6ngredient 7or 7estive 4ccasions

7or :trong air

*asty and eathy 3ating

• By User Group


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$#

• By ultural %ymbolism

By User Group

7or the Gean 9eneration

owboy- a symbo of American achismohocoate- riding on sweets as a symbo of

an auspicious beginning in 6ndian cuture

7or the ‘Jugadu’ youth

• B )rice = alit


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$$

• By )roduct ategory+'ype

• By )rice(=uality

reating an anti-category- E/ncoaF ecoming generic to a category

9ood food costs ess at :ainsburyFs- great price vaue :nob vaue- e;cusive and premium

B tit


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$%

• By ompetitor

A@6: @B: 3+*H- +epositioning the competition


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$

/ive other eamples of ea(h ofthe types of positioning


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Brand )ersonality


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Brand )ersonality

• Cum total o$ a brand"s impression Brand 'ersonalit%

• onsumers bu% a brand not onl% $or )(at it does", but)(o it is"9

• Brand as a $riend" A person" Brand 'ersoni&cation

• 'ersonalit% is a .estalt" )(ole is more t(an t(e sum o$its partsG o$ t(e brand"s values !t di


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5ppealsto t(ereason

Belie$sG

sensible,practical,

(ard)orking,

a


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%1


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%2

)ersonality can be e2pressed as a >metaphor5

*a? aha *ea ags

!$e #al3man of !eas

yrus roacha

!$e Ra7a$ of Ru22is$

6=3A 7urniture

.$ampagne on a Beer 2udget

A;e 0eo

!$e Ba2e *agnet

eera erba :hampoo

from K$adi B$avanto &a2 India


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%"

"et&s try and epress the personality

of some other brands as a metaphor


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%#

'he *3e senses- portals to ouremotions

Brand %ensorials%ight$ %ound$ %cent$ 'ouch$'aste$


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%$


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%%

Brand %emiotics

• Cemiotics is about (o) brands communicate and e2presst(emselves t(roug( s%mbols and signs

• !ts about t(e s%mbolic meaning t(roug( various codes, signalsand cultural conte2ts t(at consumers associate )it( brands

• !t is a brand"s sign language"

• Cemiotics create sensor% engagement )it( t(e brand


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%

What do these symbols mean to you?

Brand )ersonality hecklist


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Is our brand5s personality uni8ue anddi?erentiated&

Is it authentic and real&

1oes it energi@e and e2cite&

1oes it create 3alue&

1oes it strike images in the targetedcustomer5s mind- ones that resonate andmoti3ate preference&

1oes it bring to life the brand5s promises-products- ser3ices- and e2periences&

Brand )ersonality( hecklist

:( 16 5 ( t


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%(

5n% brand in t(e )orld $alls under one o$t(e 16 arc(et%pes

0(at is %our brand"s current arc(et%pe9

!s t(ere a need to sta% )it( it or do %ou

)is( to c(ange it to somet(ing else9

As we go along, let’s talk about Indian brands/ersonsre!ecting each archetye

:(e 16 5rc(et%pes

69

:(e Magician


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:(e Magician"It can haen#’

ore Desire@ kno)ledge o$ (o) t(e )orld oruniverse )orks.oal @ make dreams come trueCtrateg%@ develop vision and live it.i$t@ &nding )in-)in outcomes

)

"$ules are %eant to be broken’


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:(e Outla)

ore Desire@ irreverence or

revolution.oal@ to destro% )(at is not

)orking

Ctrateg%@ disrupt or s(ock 1

:(e reator


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:(e reator"I' it can be i%agined, it can be created’

ore Desire@ create somet(ing o$enduring value

.oal@ give $orm to a vision

Ctrateg%@ develop artistic control and

skill

.i$t@ creativit% and imagination 2

:(e Cage


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:(e Cage"(he truth will set you 'ree’

ore Desire@ t(e discover% o$ trut(

.oal@ to use intelligence and anal%sis tounderstand t(e )orld

Ctrateg%@ seek out in$ormation and kno)ledge

.i$t@ )isdom, intelligence "


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:(e uler")ower isn’t everything It’s the only thing’

ore Desire@ command and control

.oal@ create a prosperous compan% or

communit%

Ctrateg%@ e2ert leaders(ip#

:(e egular .u%A.al


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:(e egular .u%A.al"All %en and wo%en are created e*ual’

ore Desire@ connection )it( ot(ers

.oal@ to belong, &t in

Ctrateg%@ develop simple-solid virtues, t(e

common touc(

.i$t@ realism, empat(%, lack o$ pretense $

:(e Lover


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:(e Lover"I only have eyes 'or you’

ore Desire@ attain intimac% and e2periencesensual pleasure

.oal@ being in a relations(ip )it( t(e people ande2periences

Ctrateg%@ become more and more attractive in

ever% )a% %

:(e ?ester


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:(e ?ester+I' I can’t dance, I don’t want to be art o' your

revolution

ore Desire@ to live in t(e moment )it( $ull

enPo%ment

.oal@ to (ave a great time and lig(ten up

t(e )orld

Ctrateg%@ pla%, make Pokes, be $unn%

:(e aregiver


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:(e aregiver

"(he world needs %e’

ore Desire@ protect people

$rom (arm.oal@ to (elp ot(ers

Ctrateg%@ do t(ings $or ot(ers

.i$t@ compassion, generosit% '

:( ! t


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:(e !nnocent"Free to be you and %e’

ore Desire@ to e2perience t(e simplepleasures o$ li$e

.oal@ to be (app% and kind

Ctrateg%@ do t(ings rig(t and sta% out o$

t(e $ast lane(

:(e Qero


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:(e Qero

"here there’s a will there’s a way’

ore Desire@ prove one"s )ort( t(roug(courageous action

.oal@ e2ert master% in a )a% t(at improves t(e

)orld

Ctrateg%@ become strong, po)er$ul and')

:(e E2plorer


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:(e E2plorer

"Don’t 'ence %e in’

ore Desire@ t(e $reedom to &nd out )(o %ou aret(roug( e2ploring t(e )orld

.oal@ to e2perience a better, more $ul&lling li$e

Ctrateg%@ Pourne%, seek out and e2perience ne)

t(ings, escape $rom entrapment

.i$t@ autonom%, ambition, $ree-spirit

'1

FEEDOM


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'"

Brand 78uity

Brand 78uity


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'#

Brand 78uity

• :angible, ;uanti&able, monetar% value" o$ a brand

• Based on its lo%alt%, a)areness, perceived ;ualit%, strongassociations and ot(er assets like patents, trademarks,

c(annel relations(ips

• Brand as an asset" on t(e balance s(eet )it( a &nancial value

• ompanies )it( strong brands seem to deliver greaters(are(older value

• Brand /alue" $orms a signi&cant s(are o$ compan%"smarket valuation

*op 9oba rands-2)1$


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'$

85


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'%

I1=< ( Interbrand

• !mpact

• Di


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'


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''

5aker"s


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'(

BrandE;uit%

Model


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()

Brand oyalty

Brand oyalty


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(1

Brand oyalty

')

')

2)

ar!et /sers

- 2)J of users constitute ')J of the mar!et

2)

• onsumers who buy your brand Emost freuentyF and

Estay with itF Kdo not switch easiyL are rand 5oya.

• M6t is $ times more e;pensive to get a new customer

than retain an e;isting one.

• ParetoFs 5aw D ') O 2) rue


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(2

' f U


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("

'ypes of Users

• B% ;uantit% o$ use @ Lig(t, Medium, Qeav%

• B% $re;uenc% o$ use @ Occasional, egular

• B% usage status @ 3on, Lapsed, urrent, !ntending,'otential

First-time,epeat

• Brands )it( (ig( lo%alt% tend to (ave more o$ (eav%, regular,current, repeat users $or FM."sG and (ig( s(are o$!ntending Bu%ers $or DurablesG


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(#

Anaysis of the brandFs Eusage patternsF reveaed that the brand

had a arge proportion of Eoccasiona usersF K%)JL-

who used the brand ony when they had a dandruff probem

and apsed out once the probem was fi;ed.

*hese users saw & : ony as a cinica, anti-dandruff shampoo

and went bac! to their se;ier, cosmetic shampoos after

getting rid of their dandruff.

*his was ma!ing the brand suffer from not having a arge enough base

of Ereguar usersF, eading to wea! oyaty.

*he brand tas! was evident- how to convert a ma?ority of these

Eoccasiona users into reguar usersF.

A *ransit :hampoo

oyalty adder


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($

hampions the Brand Ad3ocate . %pokesman

ikes the Brand

%atis*ed Buyer

4re8uent Buyer

,o oyalty

ommitted buyer

,o reason to change

With switching cost

%witcher- )rice(dri3en

ore 9roup


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(%

oyalty Grid ( 4B


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(

oyalty Grid ( 4B

• )erfumes

• Insurance

)/7MIUM 6"A'"

• 'ea

• 1etergent

I,7/'IA 6"A'"

• Holidays

• Watches

A'7,' 6"A'"

• Bulbs

• Match Bo2

W7A 6"A'"

i

5o

i 5o

.A!E8'R/ IN'LE*EN!

B R A N

L ' / A L ! /

*ore eamples of (ategories whi(h depi(t the above

'he C )illars of Brand %trategy


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('

98


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0e"re not (ere to sell0e"re (ere to make people )ant to bu%"

.ir ohn 0egarty, Founder 110

((


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1))

atch this video and relate the concets you have learnt to this c


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1)1

businesscasestudiescoukAdieselAlive-breat(e-and-)ear-passionAintroduction(tmlSa2==aB3T:5L

Learn %ore about Diesel by reading the case given in the lin

http://businesscasestudies.co.uk/diesel/live-breathe-and-wear-passion/introduction.htmlhttp://businesscasestudies.co.uk/diesel/live-breathe-and-wear-passion/introduction.htmlhttp://businesscasestudies.co.uk/diesel/live-breathe-and-wear-passion/introduction.htmlhttp://businesscasestudies.co.uk/diesel/live-breathe-and-wear-passion/introduction.html


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httpsDBBwww.youtube.comBwatchCvQy)%4N359

atch this video and reca the concets we have discussed in cla
https://www.youtube.com/watch?v=y06qONlELGMhttps://www.youtube.com/watch?v=y06qONlELGM

1. Class Slides_brand Fundamentals

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