Branding

Course: MBA

Subject: MM II

Unit: 3

Views on Brands

“A name, logo, or symbol that

evokes in customers a perception of added value for which they will pay a premium price.”

John Torella, J.C. Winters Group, Toronto

“A product with a personality.”

Chris Staples, Rethink, Vancouver

Marketing communications in any form has an impact

on customers’ perceptions.

What is a brand ?

Branding is a combined effort of the company which is projected to the consumer.

Company

Brand

Consumer

Marketing

Design

(1) Products and services have become so alike that they fail to distinguish themselves by their quality, efficacy, reliability, assurance and care. Brands add emotion and trust to these products and services, thus providing clues that simplify consumers’ choice.

(2) These added emotions and trust help create a relationship between brands and consumers, which ensures consumers’ loyalty to the brands.

(3) Brands create aspirational lifestyles based on these consumer relationships. Associating oneself with a brand transfers these lifestyles onto consumers.

(4) The branded lifestyles extol values over and above the brands’ product or service category that allow the brands to be extended into other product and service categories. Thus saving companies the trouble and costs of developing new brands, while entering new lucrative markets.

(5) The combination of emotions, relationships, lifestyles and values allows brand owners to charge a price premium for their products and services, which otherwise are barely distinguishable from generics.

What is a brand ?

Brand Loyalty

“The degree of consumer attachment

to a brand.”

Recognition

Preference

Insistence

Awareness of name, benefit and package

Is useful, consumer will buy if available…evoked set

Will search for; must have

The Role of BrandsSignificance of Brands..

• Identify the maker

• Simplify product handling

• Organize accounting

• Signify quality

• Create barriers to entry

• Serve as a competitive advantage

• Secure price premium

What is Branding?

• Branding is endowing products and services with the power of

the brand

What is Brand Equity?

• Brand equity is the added value endowed on products and services, which may be reflected in the way consumers, think, feel and act with respect to the brand.

Advantages of Strong Brand

Improved perceptions of product

Greater loyalty

Less vulnerability to competitive marketing actions

Less vulnerability to crises

Larger margins

More inelastic

Greater trade cooperation

Increase marketing communications effectiveness

Possible licensing opportunities

What is a Brand Promise?

• A brand promise is the marketer’s vision of what the brand must be and

do for consumers

CompanyProduct A

Product B

Product PackagingWebsites

Advertisements

A brand is a promise. A promise to achieve certain results, deliver a certain experience, or act in a certain way. A promise that is conveyed by everything people see, hear, touch, taste or smell about your business.

logo

Integrity of Brand

Drivers of Brand Equity

• Brand elements

• Marketing Activities

• Meaning transference

•Brand Recognition / Equity

•Brand Preference / Loyalty

•Brand Insistence

__________________

•Brand Awareness

•Brand Association

Page 220

• Brand Recognition / Equity - awareness, loyalty, quality,

emotion

• Brand Preference / Loyalty - the degree to which

customers are committed to further purchases eg. I will

always buy Reebok (Brand Insistence)

________________________________________________

• Brand Awareness -your product is the first that comes to

mind in a certain product category

eg. Snapple ice tea, jeans-Levi’s, walkman - SONY

• Brand Association - the link to favourable images,

celebrities, geographic regions

ie. Red Strip - Jamaica, VW - Germany, Screech - NFLD

Bailey’s - Eire

• Brand Awareness -your product is the first

that comes to mind in a certain product

category

eg. Snapple ice tea, jeans-Levi’s, walkman -

SONY

Not in the text

• Brand Association - the link to favourable

images, celebrities, geographic regions

ie. Red Strip - Jamaica, VW - Germany,

Screech - NFLD

Bailey’s - Eire

• Paul Hogan - Subaru

• James Earl Jones (voice of CNN)

• Chihuahua - Taco Bell

• Jordan - Nike

• Julia Louis Dryfuss - Nice and Easy

• Candice Bergen - Sprint Canada

Brand Association - the link to favourable

images, celebrities, geographic regions

• white diamonds - liz taylor

• BMW Z3 - 007

• roots hats - olympics

• fubu - urban trend / hip hop

• right guard - Sir Charles

• Ru Paul - MAC Cosmetics

• Seinfeld - AMEX

• Brand Awareness -your product is the first that comes to mind in a certain product categoryeg. ice tea = Snapple, running shoes = Nike

The Nike’s case

• Reflects the popularity of a well-known TM

• The “Swoosh” is the well known symbol of Nike

• Originally Nike’s logo included also the shoemaker’s name

• At the end of the nineties, the Nike’s name disappeared

• The swoosh remained as the main identification symbol of the shoemaker

• Today there is no need to include the brand into this logo since the recognition of a simple swoosh automatically brings our attention to Nike

The “Swoosh”

Brand Challenges…..

Challenge of Cost

Challenge of consistency and

clutter

• Consistency: Everyone in the company has an

impact on the brand

• Clutter: Standing out and forming association

is difficult

CHALLENGES

• Savvy Customers

• Mature markets ( desktop PC’s )

• Difficulty in differentiation

• Short term performance orientation

• New communication options

• Brand proliferation

Media Fragmentation

• Cost

• Clutter

• Fragmentation

• Technology

Increased Competition

• Globalization

• Low priced competition

• Brand extensions

• Deregulation

Branding Strategy

• Both Tiger Woods and Nike can be considered brands

Brand Strategy

• Brand Positioning• Brand Name Selection

• Brand Sponsorship

• Brand Development

• Three levels of positioning:

– Product attributes• Least effective

– Benefits

– Beliefs and values• Taps into emotions

Key Decisions

Brand Positioning

• Brand Positioning: marketers need to position their brands clearly in target customers’ minds

• Can position under product attributes– The least desirable level for brand positioning because competitors can easily

copy attributes– Customers are not necessarily interested in attributes but what those

attributes will do for them

• Can position by associating its name with a desirable benefit

• The strongest brands are positioned on strong beliefs and values

• When positioning a brand, the marketer should establish a mission for the brand and a vision of what the brand must be and do

Branding Strategy

Product Positioned on Emotions

MasterCard positions its credit card based

on consumer emotions

Brand Strategy

• Brand Positioning

• Brand Name Selection

• Brand Sponsorship

• Brand Development

• Good Brand Names:

– Suggest something about the product or its benefits

– Are easy to say, recognize and remember

– Are distinctive

– Are extendable

– Translate well into other languages

– Can be registered and legally protected

Key Decisions

Brand Name Selection

• Desirable qualities for a brand name include:

1. It should be easy to pronounce, recognize,

and remember.

2. It should be distinctive.

3. It should suggest product’s benefits and

qualities.

4. It should be extendable.

5. It should translate easily into foreign

languages.

6. It should be capable of registration and

legal protection.

Boudreaux’s Butt Paste is a

real product that is used in

the treatment of diaper rash.

Evaluate this brand name

against the criteria for a

good brand name that were

previously discussed.

How does it fare? Explain.

Brand Strategy

• Brand Positioning

• Brand Name Selection

• Brand Sponsorship

• Brand Development

• Manufacturer brands

• Private (store) brands

– Costly to establish and promote

– Higher profit margins

• Licensed brands

– Name and character licensing has grown

• Co-branding

– Advantages / disadvantages

Key Decisions

Brand Sponsorship

• Brand Sponsorship: four sponsorship options

– Private Brands: store brand or distributor brand

– Manufacturer’s Brand: or national brand

– Licensed Brands: the brand name is licensed to other products

– Co-Branding: when two established brand names of different companies are used on the same product

Brand Strategy

• Brand Positioning

• Brand Name Selection

• Brand Sponsorship

• Brand Development

• Line extensions– Minor changes to existing

products

• Brand extensions– Successful brand names help

introduce new products

• Multibrands– Multiple product entries in a

product category

• New brands– New product category

Key Decisions

Brand Development• Brand Development- 4 choices for brand development:• Line Extensions

– Occur when a company introduces additional items in a given product category under the same brand name, such as new flavors, forms, colors, ingredients, or package sizes

• Brand Extension– Involves the use of a successful brand name to launch new or

modified products in a new category—gives a new product instant recognition and faster acceptance

• Multibrands– Offers a way to establish different features and appeal to different

buying motives—additional brands in the same category—a drawback is that each brand might only obtain a small portion of market share and none may be very profitable

• New Brands– A company may create a new brand name when it enters a new

product category for which none of the company’s current brand names is appropriate

Brand rejuvenation

• Brand rejuvenation involves adding value to an existing brand byimproving product attributes and enhancing its overall appeal. It isintended to re-focus the attention of consumers on an existingbrand. Brand rejuvenation helps overcome the consumer’sboredom in seeing the same product on the shelves year after year.A consumer’s psychological desire for changing is one key factorbehind brand rejuvenation.

• Quite often, we see ongoing brands appearing as; ’new’, ‘super’,‘special’ ‘premium,’ deluxe, ‘extra strong’ and ‘fresh’,. They appearin new shapes, new pack sizes, new containers, new colors andflavors. Basically what happens here is an updating of brands. CornProducts reintroduced Rex jam with pieces of fruit in it and packedthem in new containers. Cadbury’s 5 star chocolate bar received afill up through a new creamier and smoother version.

Brand Re-launch

• Relaunch Reintroducing a brand, product or service into aspecific market. The term implies that the company haspreviously marketed the product but stopped marketing it. Arelaunched offering has usually been technically modified orrebranded/repositioned

Brand proliferation…

• Brand proliferation is the opposite of brand extension. While in brandextension, new items are added using an existing brand name and severalproducts are offered under the same brand name, in brand proliferation,more items are brought in with new brand names. In other words, the firmhas several brands in the same product/product category. It means thatthe list of independent brands swells up. For instance, Unilever has morethan 25 brands of ice creams and P&G has more than a dozen brands ofdetergents.

• Brand proliferation can help expand the market as well as the company’smarket share in the category. It can also increase the company’s clout atthe retail level by offering variety. New brands also generate excitement ofthe sales team of the company at the same time, however, there are alsomany pitfalls in brand proliferation. More brands from a company’s stableenhance competition in the market. It also paves the way for thecompany’s brands to compete among themselves, a phenomenon knownas brand cannibalization.

Packaging

• How can we define Packaging?• Kotler defines packaging as "all the activities of

designing and producing the container for a product."Packaging can be defined as the wrapping materialaround a consumer item that serves to contain,identify, describe, protect, display, promote, andotherwise make the product marketable and keep itclean. Packaging is the outer wrapping of a product. Itis the intended purpose of the packaging to make aproduct readily sellable as well as to protect it againstdamage and prevent it from deterioration whilestoring. Furthermore the packaging is often the mostrelevant element of a trademark and conduces toadvertising or communication.

Importance of Packaging

• 1. Protection and preservation• A basic function of package is to protect and preserve

the contents during transit from the manufacturer to the ultimate consumer. It is the protection during transport and distribution; From climatic effects (heat and cold, moisture, vapour, drying atmospheres); from hazardous substances and contaminants; and from infestation. Protection is required against transportation hazards spillage, dirt, ingress and egress of moisture, insect infection, contamination by foreign material, tampering pilferage etc. A package should preserve the contents in 'Factory Fresh' condition during the period of storage and transportation, ensuring protection from bacteriological attacks, chemical reaction etc.

• 2. Containment

• Most products must be contained before they can be moved from one place to another. To function successfully, the package must contain the product. This containment function of packaging makes a huge contribution to protecting the environment. A better packaging help to maintain the quality of the product and reachability of the product in the consumer's hand without spillages It gives better image to the organisation.

• 3. Communication• A major function of packaging is the communication of

the product. A package must communicate what it sells. When international trade is involved and different languages are spoken, the use of unambiguous, readily understood symbols on the distribution package is essential. It is the interest further that to get appropriate communication to the consumer about the product, how to use it and other utility informations. Packaging protects the interests of consumers. Information includes: quantity; price; inventory levels; lot number; distribution routes; size; elapsed time since packaging; colour; and merchandising and premium data.

Labeling

• Display of information about a product on itscontainer, packaging, or the product itself. Forseveral types of consumer and industrialproducts, the type and extent of informationthat must be imparted by a label is governedby the relevant safety and shipping laws.

Universal Product Code

• Twelve-digit barcode printed or affixed onvirtually everything sold in supermarkets or retailstores, including books, magazines, candy, etc.,for automatic checking-out at the cashier counter.UPC not only identifies an item, it also providesreal time information on quantity sold, storetraffic pattern, and inventory and orderinginformation. Introduced by IBM in 1973 for use inelectronic point-of-sale applications, it wassupplanted by European Article Numbering (EAN)code in 1976.

Sources:-

• http://www.slideshare.net/jwayne2013/branding-ppt-16015717

• http://www.slideshare.net/muzamilquadir/branding-challenges-and-opportunities-16730942?related=1

• http://www.slideshare.net/rdhawthorne/chapter7-branding-cont

• http://www.citeman.com/2921-brand-rejuvenation-with-examples.html

• http://www.blackcoffee.com/brand-related/brand-terms/R/relaunch

• http://www.citeman.com/3193-brand-proliferation-and-the-other-strategies.html

• http://www.indianmba.com/Faculty_Column/FC337/fc337.html

• http://www.businessdictionary.com/definition/labeling.html

• http://www.businessdictionary.com/definition/Universal-Product-Code-UPC.html#ixzz3OxG9gL9y