13. managing brands
DESCRIPTION
managing brandsTRANSCRIPT
Developing Marketing Strategy
Managing Products & Brands
The Product and the Product Mix
• Brand decisions– What is a brand?
• Attributes• Benefits• Values• Culture• Personality• User
Meaning of a brand
• Commonly used research approaches to determine brand meaning:– Word associations…what comes to your mind– Personifying the brand…. what do you identify the
brand with– Laddering up the brand essence
• Brand essence…deeper reason for buying• Laddering up…. building further on the reasons
Building Brand Identity
– Brand bonding• Brands are not built by advertising
but by the brand experience• Everyone in the company lives the brand• Three ways to carry on internal branding –
Employees must– Understand– Desire, and – Deliver on the brand promise
Clarify the corporation’s basic values and build the corporate brand.– Use brand managers to carry out the tactical work.– Develop a more comprehensive brand-building plan.– Define the brand’s basic essence to be delivered
wherever it is sold.– Use the brand-value proposition as the key driver of the
company’s strategy, operations, services, and product development.
– Measure their brand-building effectiveness, not by the old measures of awareness, recognition, and recall, but by a more comprehensive set of measures including customer-perceived value, customer satisfaction, customer share of wallet, customer retention, and customer advocacy.
Building Brands in the new economy
Brand Equity
• Brand Equity– Brand awareness– Brand acceptability– Brand preference
• Aaker’s five levels of customer attitude:– The customer will change brands, especially for
price reasons. No brand loyalty.– Customer is satisfied. No reason to change brands.– Customer is satisfied and would incur cost by
changing brand.– Customer values the brand and sees it as a friend.– Customer is devoted to the brand.
Brand Equity
– Value of Brand Equity• Brand valuation• Competitive advantages of high brand equity:
– The company will have more leverage in bargaining with distributors and retailers because customers expect them to carry the brand.
– The company can charge a higher price than its competitors because the brand has higher perceived quality.
– The company can more easily launch extensions because the brand name carries high credibility.
– The brand offers some defense against price competition.
• Branding Challenges– Branding Decision: To Brand or Not to Brand?
An Overview of Branding Decisions
The Product and the Product Mix
Why branding ????
– Branding gives the seller several advantages:• Brand name makes it easier for the seller to process
orders and track down problems• Seller’s brand name and trademark provide legal
protection of unique product features• Branding gives the seller the opportunity to attract a loyal
and profitable set of customers.• Branding helps the seller segment markets.• Strong brands help build corporate image, making it
easier to launch new brands and gain acceptance by distributors and consumers.
Brand Sponsors
– Brand-Sponsor Decisions• Manufacturer brand• Distributor brand• Licensed brand name
What’s in a name?
– Desirable qualities for a brand name• It should suggest something about the product’s benefits• It should suggest the product or service category• It should suggest concrete, “high imagery” qualities• It should be easy to spell, pronounce, recognize, and
remember• It should be distinctive• It should not carry poor meanings in other countries and
languages
A Brand Must be More Than a Name
• A brand must trigger words or associations (features and
benefits).
• A brand should depict a process (McDonald’s, Amazon).
• A great brand triggers emotions (Harley-Davidson).
• A great brand represents a promise of value (Sony).
• The ultimate brand builders are your employees and
operations, i.e., your performance, not your marketing
communications.
Brand-Name Decision
• Four available strategies:– Individual names…Dove, LUX– Blanket family names….Amul– Separate family names for all products in a
category…Maggi– Corporate name combined with
individual product names…Cadbury’s
Tools for Building Brands
• Advertising (e.g.,Absolut Vodka)
• Sponsorships (e.g., Kodak and Olympics)
• Clubs (e.g. Nestle’s Maggi Club)
• Company visits (e.g., Cadbury’s)
• Trade shows
• Traveling exhibits
• Worldwide web casts of presentations, roundtables, entertainment
• Distribution outlets (e.g., Haagen-Dazs)
• Public facilities
• Social causes ( Tata Memorial Hospital)
• High value for the money ( Ikea.)
• User community building ( Harley-Davidson)
• Founder’s personality ( Colonel Saunders- KFC)
• Celebrity spokespersons
Branding Components
• Name– Short, suggestive, memorable, unique,
pronounceable• Slogan• Logo and typeface• Colors• Music (Jingles)• Theme lines (Pure for Sure!)• Stationery and business cards• Offices• Trucks• Dress code
There is No Such Thing as a Commodity: Differentiate by Segments
• Mobil conducted a study of 2,000 gasoline buyers and identified five segments:– Road Warriors (always driving)
– True Blues (brand or dealer loyal)
– Generation F3 (liked convenience store aspect)
– Homebodies (fills up at nearest station)
– Price Shoppers (20% of all the buyers)
• Mobil rolled out Friendly Serve: cleaner property, bathrooms, better lighting, well-stocked stores, and friendlier personnel.
• Mobil charged $.02 more and sales increased by 20-25 percent.
Branding Strategy
– Brand Strategy Decision– Functional brand...to satisfy a functional need– Image brand…to convey an image “Cross Pens”– Experiential brands…need to experience it
“Barista”• Line Extensions
– Introducing additional items in the same product category…Clinic, Clinic Plus
• Brand extensions– Using existing brand to enter newer categories e.g
Dettol soap, Dettol antiseptic lotion– Wills cigarettes & Wills lifestyle apparels
Don’t Overuse Advertising to Build a Brand
People don’t pay that much attention to ads anymore.
Some exceptional TV ads grab attention but do not provide motivation. e.g Ericsson ad
Advertising doesn’t have much credibility or believability.
The existence of so much advertising makes advertising less effective. Yet the cost of advertising keeps rising.
Multi-Branding
• Multibranding--- New Brands, and Co-Brands
– Multi-branding» Flanker Brands
– Co-branding (Dual branding)» Ingredient co-branding» Same-company co-branding» Joint venture co-branding
Packaging & Labeling
• Packaging and Labeling– Packaging– Package
• Primary Package• Secondary Package• Shipping Package
– Factors which have contributed to the growing use of packaging as a marketing tool
• Self-Service• Consumer affluence• Company and brand image• Innovation opportunity
Packaging & Labeling
– Labeling• Functions
– Identification– Grading– Description
• Consumerists have lobbied for:– Open dating– Unit pricing– Contents labeling
What Are the Most Frequent Causes of Brand Failure?
• Failure to live up to the brand promise.• Failure to adequately support the brand.• Failure to adequately control the brand.• Failure to properly balance consistency and change with
the brand.• Failure to do brand equity measurement and
management.