Chapter 6

• Brand Values

Ch-06 Brand Values

What is Brand Value

• Consumers want value for his money• Value is what the buyers are willing to pay for• If the products or brands offer a bundle of

benefits from which customers derive far greater value than the total cost they incur to receive those benefits, we say products or brands have created value for the customer

Ch-06 Brand Values

Customer Derive Value

• Total Customer Value

Total Customer Value

Product Value

Service Value

Personal Value

Image value

Ch-06 Brand Values

Customer Derive Value

• Total Customer Cost

Total Customer Cost

Monetary Price

Time Cost

Energy Cost

Psychic Cost

Ch-06 Brand Values

Value Creation

Opportunity Idenfied

Opportunity Developed

Value Produced

Value Added

Value retained

Ch-06 Brand Values

Core Value• Why Buy me? Key benefits brand delivers to the

customer• E.g. Nirma’s core value is reasonable quality at

affordable price• A brand may have a hierarchy of attributes,

benefit and values.• Products and brands have core values and other

values both must complement and supplement each other.

Ch-06 Brand Values

Core Values and Brand Personality

• Core values define a brand’s motivations and boundaries

• Core values encompasses its competitive advantage, the benefits and other associated experiences

• Brand personality is the behaviour of the brand and its presentation

Ch-06 Brand Values

A Typical Business System

New Product Development

Services

Sales, DistributionAnd Promotion

OperationsSuppliers

Ch-06 Brand Values

Business System as a Value Chain

Design Raw Materials Manufacturing

Distribution & PricingEnd of Life Sales, Use & Services

Make The Product

Sell the Product

Ch-06 Brand Values

Total Value Proposition

Choose the Value• Customer Segmentation

• Market Selection Focus

• Value Proposition

Ch-06 Brand Values

Right Value Proposition

• Three Dimensions1. Product Leadership2. Operational Excellence3. Customer Intimacy

Ch-06 Brand Values

What is a Brand?

• “ a product that provides functional benefits plus added values that some consumers value enough to buy.”

• Added values mostly are non-functional but sometimes may include unexpected functional use

Ch-06 Brand Values

• Added values come from the experience of the brand , the users of the brand, the belief that the brand is effective, and the appearance of the brand.

What is a Brand?

Ch-06 Brand Values

Brands & symbolism

• People buy brands not only for what they can do, but also for what they signify.

• Visual representation is used to facilitate the understanding of symbolic meanings e.g. MRF muscle man indicates the strength of the tires.

Ch-06 Brand Values

Brand Values and Personality

EpistemicValue

EmotionalValue

FunctionalValue

Social Value

Conditional Value

BrandChoice

Ch-06 Brand Values

Functional Value

• Perceived utility from functional capability of a brand

• E.g. racing capability of Ferrari sports car

Ch-06 Brand Values

Social Value

• Perceived utility through brand’s association with a social group

• E.g. Green label liquor is for achievers

Ch-06 Brand Values

Emotional Value

• Perceived utility from brand’s ability to invoke particular feelings

• E.g. a gift of a diamond ring is an expression of love

Ch-06 Brand Values

Epistemic Value

• Perceived utility from a new brand mainly to experience novelty and satisfy curiosity

• E.g. Use Nokia 7250 set with a Digital camera and MMS

Ch-06 Brand Values

Conditional Value

• Perceive utility from a brand in a specific situation

• Eating popcorn at home to satisfy hunger, but at multiplex regarded as a treat.

Ch-06 Brand Values

Total Value Proposition

Provide the value• Product Development• Service Development• Pricing• Sourcing & Manufacturing• Distribution & Servicing

Ch-06 Brand Values

Total Value Proposition

Communicate the value• Sales force

• Sales promotion

• advertising

Ch-06 Brand Values

Porter’s Value Chain

Inbound Logistics outbound LogisticsOperations

Marketing & SalesServicesProfitable Sales

Ch-06 Brand Values

Porter’s Generic Strategies For Brands

Brand Cost

FocusDifferentiation

FocusCost

BrandDifferentiation

Com

peti

tive

Sco

peN

arro

w B

and

Low Cost Value addedCompetitive Advantage

Ch-06 Brand Values

Levitt’s four level model

GenericProduct

ExpectedProduct

Augmented Brand

Potential Brand

Ch-06 Brand Values

Brand Proposition

• A Brand proposition becomes a value proposition to the consumers by providing measurable and credible values

• E.g. Dettol’s proposition is ‘100 per cent bath’

Ch-06 Brand Values

USP

• The brand , its equity and heritage are to be build over a period of time

• Guard the USP by appropriate segment benefits

• Maintain a wider USP• Enduring USPs maintained over a period

of time e.g. Power of Philips, Sony for innovations

Ch-06 Brand Values

Summary

• If the products or brands offer a bundle of benefits from which customers derive far greater value than the total cost they incur to receive those benefits, we say products or brands have created value for the customer

• Total Customer Value includes product value, personal value, service value, image value

Ch-06 Brand Values

Summary

• Total Customer Cost includes monitory prize, time cost, energy cost and psychic cost

• Value Creation involves following concepts

Ch-06 Brand Values

Summary

Brand personality is the behaviour of the brand and its presentation

• The brand, its equity and heritage are to be build over a period of time

• Guard the USP by appropriate segment benefits

Ch-06 Brand Values

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