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Brand ManagementBrand Management

BrandBrand

A name, term, symbol, A name, term, symbol,

design, or combination design, or combination

thereof that identifies a thereof that identifies a

seller’s products and seller’s products and

differentiates them from differentiates them from

competitors’ products.competitors’ products.Dalrymple & Parsons/Marketing Management 7th edition: Chapter 7 3

A Brand is a …..A Brand is a ….. Name, Term, Sign, Symbol, or Design

intended to identify and distinguish the goods and services from one another

An Effective Brand NameAn Effective Brand Name

● Is easy to pronounce

● Is easy to recognize and remember

● Is short, distinctive, and unique

● Describes the product, use, and benefits

● Has a positive connotation

● Reinforces the product image

● Is legally protectable

BrandingBranding

Brand Name

Brand Name

BrandMark

BrandMark

Brand EquityBrand Equity

That part of a brand that can be spoken, including letters, words, and numbers.

That part of a brand that can be spoken, including letters, words, and numbers.

The elements of a brand that cannot be spoken.

The elements of a brand that cannot be spoken.

The value of company and brand names.Awareness, quality, loyalty, patent and

trademark.

The value of company and brand names.Awareness, quality, loyalty, patent and

trademark.

Benefits of BrandingBenefits of Branding

Powerful asset/tool in establishing Powerful asset/tool in establishing competitive advantage- competitive advantage-

translates into brand equity ( the value of the translates into brand equity ( the value of the company and brand names)company and brand names)

Product identification!Product identification! Consumers familiar with brandConsumers familiar with brand Often equates to qualityOften equates to quality

Global brandGlobal brand = 20% of product sold outside home country= 20% of product sold outside home country Acts as an ambassadorActs as an ambassador

Advantages of BrandingAdvantages of Branding

Consumer’s viewpointConsumer’s viewpoint1.1. Product quality and consistencyProduct quality and consistency2.2. Increased shopper efficiency/identificationIncreased shopper efficiency/identification3.3. Calls attention to new productsCalls attention to new products4.4. Reduces psychological riskReduces psychological risk

Seller’s viewpointSeller’s viewpoint1.1. Handling orders, tracking down problemsHandling orders, tracking down problems2.2. Trademark – legal protection and unique product Trademark – legal protection and unique product

feature.feature.3.3. Brand equity and brand loyaltyBrand equity and brand loyalty4.4. Reduces need for in-store contactReduces need for in-store contact5.5. Facilitates segmentation, promotion, and pricingFacilitates segmentation, promotion, and pricing

The World’s Most Valuable The World’s Most Valuable BrandsBrands

Brand StrategyLine Extensions

Brand ExtensionsMultibrandsNew Brands

Brand StrategyLine Extensions

Brand ExtensionsMultibrandsNew Brands

Brand SponsorManufacturer’s Brand

Private BrandLicensed Brand

Co-branding

Brand SponsorManufacturer’s Brand

Private BrandLicensed Brand

Co-branding

Brand Name SelectionSelectionProtection

Brand Name SelectionSelectionProtection

Major Branding Decisions Major Branding Decisions

Branding StrategiesBranding Strategies

BrandBrand No BrandNo Brand

Manufacturer’s Brand

Manufacturer’s Brand Private BrandPrivate Brand

IndividualBrand

IndividualBrand

Family Brand

Family Brand

Combi-nation

Combi-nation

IndividualBrand

IndividualBrand

Family Brand

Family Brand

Combi-nation

Combi-nation

Generic BrandGeneric Brand

A no-frills, no-brand-name, A no-frills, no-brand-name,

low-cost product that is low-cost product that is

simply identified by its simply identified by its

product category.product category.

Manufacturers’ Brands Manufacturers’ Brands VersusVersus

Private BrandsPrivate Brands

Manufacturers’ Manufacturers’ BrandBrand

Manufacturers’ Manufacturers’ BrandBrand

Private Private BrandBrand

Private Private BrandBrand

The brand name of a manufacturer.

The brand name of a manufacturer.

A brand name owned by a wholesaler or a retailer. Also

known as a private label or store brand.

A brand name owned by a wholesaler or a retailer. Also

known as a private label or store brand.

Individual Brands VersusIndividual Brands VersusFamily BrandsFamily Brands

Individual Individual BrandBrand

Individual Individual BrandBrand

Family Family BrandBrand

Family Family BrandBrand

Using different brand names for different products.

Using different brand names for different products.

Marketing several different products under the same

brand name.

Marketing several different products under the same

brand name.

Line ExtensionGodrej Fair glow fairness

Washing machine.

Multibrands

Brand ExtensionBrand Rejuvenation

Brand RelaunchBrand Proliferation

New Brands NameEx: ManikchandB

rand

Nam

e

Existing New

Product Category

Existing

New

Four Brand Strategies Four Brand Strategies

Line ExtensionLine Extension

Development of a product Development of a product

that is closely related to one that is closely related to one

or more products in the or more products in the

existing product line but existing product line but

designed specially to meet designed specially to meet

the somewhat different needs the somewhat different needs

of customers.of customers.

Brand extensionBrand extension

Extending the brand to another form of same Extending the brand to another form of same product. (e.g. Toothpaste)product. (e.g. Toothpaste)

Product Line extensions e.g. Saffola Oil.Product Line extensions e.g. Saffola Oil. Reaching new categories Fairness creams to Reaching new categories Fairness creams to

soap. Easy flow of soaps in the marketsoap. Easy flow of soaps in the market

Two Types:Two Types:

Upward brand extensions (upper market Upward brand extensions (upper market segment)segment)

Downward brand extensions (lower market Downward brand extensions (lower market segment). Ex. Nirmasegment). Ex. Nirma

Brand RejuvenationBrand Rejuvenation

Process of revitalizing an ailing brand. Process of revitalizing an ailing brand. E.g. Cadbury’s, HorlicksE.g. Cadbury’s, Horlicks Three steps involvedThree steps involved1. Discovery: process of identifying the 1. Discovery: process of identifying the

company and what they mean to the company and what they mean to the customerscustomers

2. Innovation: shortcoming are removed and 2. Innovation: shortcoming are removed and tested on loyal customers and wholesalers.tested on loyal customers and wholesalers.

3. expression: project positive image of the 3. expression: project positive image of the brand in the customer’s minds.brand in the customer’s minds.

Product Relaunch: Product launched after a Product Relaunch: Product launched after a time gap.time gap.

Brand ProliferationBrand Proliferation It is an introduction of product with new brand It is an introduction of product with new brand

names in the same product category. It is names in the same product category. It is converse of brand extension. It helps to increase converse of brand extension. It helps to increase the market share of the product. Eg. HUL with the market share of the product. Eg. HUL with different brand of same type of products.different brand of same type of products.

Disadvantage:Disadvantage: Company’s brands compete with each otherCompany’s brands compete with each other Company has to divide the resources among Company has to divide the resources among

these brands for their maintenance.these brands for their maintenance. The cost of distribution ,advertising, packaging The cost of distribution ,advertising, packaging

and inventory costs also go up significantly.and inventory costs also go up significantly.

MultibrandsMultibrands

Firms adopt multiple branding Firms adopt multiple branding strategies to capture a greater market strategies to capture a greater market share by filling the gaps in the market share by filling the gaps in the market and catering different buying pattern of and catering different buying pattern of the customers.the customers.

Ex: nokia cell phone, BikeEx: nokia cell phone, BikeDisadvantageDisadvantage With the multi-branding strategy is that With the multi-branding strategy is that

the company may obtain a smaller the company may obtain a smaller market share of all the brands.market share of all the brands.

CobrandingCobranding

On Linehttp://www.kelloggs.comhttp://www.disney.com

On Linehttp://www.kelloggs.comhttp://www.disney.com

IngredientBranding

IngredientBranding

Cooperative Branding

Cooperative Branding

Complementary Branding

Complementary Branding

Types of CobrandingTypes of CobrandingTypes of CobrandingTypes of Cobranding

AOL

On Linehttp://www.postcereal.comhttp://www.quakeroats.com

On Linehttp://www.postcereal.comhttp://www.quakeroats.com

Co brandingCo branding

Two or more brand names on the product Two or more brand names on the product or its packageor its package– Ingredient brandingIngredient branding

i.e., Hero Honda recommending MRF tyresi.e., Hero Honda recommending MRF tyres

– Cooperative brandingCooperative branding Airline/hotel/credit card packagesAirline/hotel/credit card packages Borrow on each other’s brand equityBorrow on each other’s brand equity

– Complementary brandingComplementary branding Advertised or marketed together to suggest usage–Advertised or marketed together to suggest usage–

Coco cola recommending kinley mineral water.Coco cola recommending kinley mineral water.

Brand ManagementBrand Management

Brand equityBrand equity: The goodwill (equity) that an : The goodwill (equity) that an established brand has built up over its existence. established brand has built up over its existence.

““DREKDREK” -- differentiation, relevance (strength)” -- differentiation, relevance (strength) -- esteem, knowledge (stature)-- esteem, knowledge (stature) Brand conceptBrand concept: specific meaning that brand : specific meaning that brand

managers create and communicate to the target managers create and communicate to the target market.market.

Brand concept managementBrand concept management: the analysis, planning, : the analysis, planning, implementation, and control of a brand concept implementation, and control of a brand concept throughout the life of the brand. throughout the life of the brand.

Semiotics: Science of signsSemiotics: Science of signs E.g HUL testing Power Brands(30)E.g HUL testing Power Brands(30)

PackagingPackaging

FunctionsFunctionsofof

PackagingPackaging

FunctionsFunctionsofof

PackagingPackaging

Contain and ProtectContain and Protect

PromotePromote

Facilitate Storage, Use, and Convenience

Facilitate Storage, Use, and Convenience

Facilitate RecyclingFacilitate Recycling

PackagingPackaging

Activity of designing and Activity of designing and producing the container or producing the container or wrapper for a product.wrapper for a product.

Packaging used to just contain Packaging used to just contain and protect the product.and protect the product.

Packing now has promotional Packing now has promotional value and marketers should:value and marketers should:– Establish a packaging concept,Establish a packaging concept,– Develop specific elements of the Develop specific elements of the

package,package,– Tie together elements to support Tie together elements to support

the positioning and marketing the positioning and marketing strategy.strategy.

– VIEW ModelVIEW Model

This business-to-business ad offers to provide ecologically sound packaging.

Besides its impact on the environment, what aspects of packaging can help/hinder product sales?

How have these products become known by their packaging:•Cracker Jacks?•Capri Sun?

PackagingPackaging Not just the container– part of the on-going Not just the container– part of the on-going

promotion/advertisingpromotion/advertising #1 job is still containment/protection of product#1 job is still containment/protection of product #2 Promote the product#2 Promote the product

– Way to differentiate from competitorsWay to differentiate from competitors– Inform the customer (ingredients, size, etc.)Inform the customer (ingredients, size, etc.)– Colors to cue customers (green = healthy)Colors to cue customers (green = healthy)

#3 Faciliate storage, use and convenience#3 Faciliate storage, use and convenience– Also way to segment market (sugar in big Also way to segment market (sugar in big

crummy bag vs. carton== type of user, single crummy bag vs. carton== type of user, single servings, kid friendly/safe)servings, kid friendly/safe)

#4 Facilitate recycling and reducing #4 Facilitate recycling and reducing environmental damageenvironmental damage

LabelingLabeling

Printed information Printed information appearing on or with the appearing on or with the package (e.g., Nutrition package (e.g., Nutrition Facts Panel)Facts Panel)

Performs several Performs several functions:functions:– IdentifiesIdentifies product or brand product or brand– DescribesDescribes several things several things

about the productabout the product– PromotesPromotes the product the product

through attractive graphics.through attractive graphics.

A classic labeling example .

What about thi s l abe l he lps to se ll the pr oduc t?

Click or press spacebar to r et urn.

LabelingLabeling

PersuasivePersuasive

● Focuses on promotional theme

● Information is secondary

InformationalInformational

● Helps make proper selections

● Lowers cognitive dissonance

● Includes use/care

Packaging and LabelingPackaging and Labeling

Persuasive: promotional first, and Persuasive: promotional first, and customer information is secondarycustomer information is secondary– Use a logo or themeUse a logo or theme– ““New”, “improved” don’t do as much for New”, “improved” don’t do as much for

consumerconsumer Informational labeling: Help consumer Informational labeling: Help consumer

make “right” choice and lessen possible make “right” choice and lessen possible cognitive dissonancecognitive dissonance

i.e., nutrition labels, care information, construction i.e., nutrition labels, care information, construction standards, etc.standards, etc.

Universal Product CodesUniversal Product Codes

A series of thick and thin A series of thick and thin

vertical lines (bar codes), vertical lines (bar codes),

readable by computerized readable by computerized

optical scanners, that optical scanners, that

represent numbers used represent numbers used

to track products.to track products.

Any doubts???Any doubts???