6.Branding Decisions

7/31/2019 6.Branding Decisions

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BRAND DECISIONS


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The AMA definition of a brand:

A name, term, sign, symbol, or design, or a

combination of these, intended to identify

the goods or services of one seller or group

of sellers and to differentiate them from the

competition.


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BRAND VALUE

Companies spend fortunes building brands

Heart of business activity

Is not just a logo or symbol


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Brands can convey six levels ofmeaning:

Attributes

Benefits

Values

Culture

Personality

User


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3 MAJOR TYPES OF BRAND

Manufacturers Brand : Surf, Coke, Colgate, Sony

Private Brands : Marks & Spencers, Life Style,

Shoppers Stop, Big Bazaar

Generic Brands : Rice, wheat, dusters


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Brand Decisions:

Whether to brand or not : What Positioning??

If branding which type : blanket family name

(Tata) or individual names (P&G)??

Brand Extension : If yes, when??

Brand Repositioning : When ??


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Brand identity decisions include:

Name Logo

Colors

Tagline Symbol

Consumer experiences create brandbonding, brand advertising does not.


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Marketers should attempt to create

or facilitate awareness, acceptability,preference, and loyalty among

consumers.

Valuable and powerful brands enjoy

high levels of brand loyalty.


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Aaker identified five levels of customer attitudes

toward brands:

Will change brands, especially for price. No

brand loyalty. Satisfied -- has no reason to change.

Satisfied -- switching would incur costs.

Values brand, sees it as a friend. Devoted to the brand.


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Brand equity refers to the positive

differential effect that a brand name has oncustomers.

Brand equity: is related to many factors.

allows for reduced marketing costs.

is a major contributor to customerequity.


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BRAND EQUITY

The Aaker Model

5 Categories of Brand Assets / liabilities

Assets : Add to a Brand

Liabilities : Subtract a brand

Assets : i) Brand Awareness degree of brand namerecognition

ii) Brand loyalty

iii) Perceived quality

iv) Brand Associations : strong mental & emotionalassociation

v) Other assets : patents, trademarks or channel

relationships.

All the above build Brand Equity


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Brand Identity : Unique set of associations which build

what the brand stands for & promises to customers

Core Identity : Extended Identity

Essence of brand : Various brand identity elements in groups

Maruti car : value for : Extended networks of service stations &

Money, well engineered Japanese standards, family car loyal users

car

Coca Cola : For fun loving, adventurous, loyal, good

Full of life thirst people, Drunk by celebrities,

quencleer


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Brand Equity

Assets / Liabilities associated with a brand that enhances /depreciated its value.

a) Offers more than what the customer expects

b) Stays associative

Brand associated with some values, with a person, with

benefits (Intel Innovation) (Royale Status) (Coke -

..)

c) Customers value proposition dictates the price

Pricing strategies have to match customer expectations

Electronics DVD, Digital Camera, Nike, Adidas


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Brand Equity

d) Right Positioning : Clear Differentiation

e) Maintains consistency

f) Portfolios must be well maintained .. HLL, Coke

g) All marketing efforts to build brand equity

h) Brand properly supported for long time : Brand building

is a long process.

i) Check brand performance from time to time.


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Key Challenges

To brand or not

Advantages ofbranding:

Facilitates orderprocessing

Trademarkprotection

Aids insegmentation

Enhancescorporate image

Branded goods aredesired by retailersand distributors

BRAND DECISIONS


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BRAND DECISIONS

Key Challenges

Brand sponsor

Options include:

Manufacturer

(national) brandDistributor (reseller,

store, house,private) brand

Licensing the brandname


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BRAND SPONSORSHIP

A major method of publicity

Building salience;

Creating brand identity

Company has to be clear about benefits it isgetting from brand e.g. visibility,

Association with event; long term relationship

Maximum utilization of event for publicity;

Platform for launching product awareness; Effectively planned & implemented for mileage.


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KeyChallenges

Brand name

Strong brand names:

Suggest benefits

Suggest productqualities

Are easy to say,recognize, andremember

Are distinctive Should not carry poor

meanings in otherlanguages

BRAND DECISIONS


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BRAND NAME :

Critical Success Factor

Identify itself by benefits, evoke intended

associations,

Legal, ethical, available

Continue a long time

The Sony Story


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Key Challenges

Brand strategy

Varies by type of brand

Functional brands

Image brands

Experiential brands

Line extensions

Brand extensions

Multibrands

New brands

Co-branding

BRAND DECISIONS


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BRAND STRATEGY :

Brand has value; Brand strategy is the steps that deliverthis value to customers.

Identify the availability of resources for brand building

Commitment of company.

Capability to take required initiative; brands strategysupports overall business strategy.

Separate Branding or Umbrella Branding : HLL, P&G or

LIC (Jeevan), Bajaj, Tata Tea.

Family Branding : Tata Tea, TISCO, Tata Power, Gillette

Line family Branding : Family name or a line of products

rather than all products categories.

Annapurna Atta, Salt, but not personal products /

detergents.


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A. LINE EXTENSION

Product that is closely related to a product in the existing

line but caters to different needs of customers : Fair &Lovely Cream / Lotion / Soap?

BRAND DECISIONS


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B. BRAND EXTENSIONBrand names extended to new product categories:

B1. Extend brand to another form of same product :

Colgate gel, toothpaste, tooth powder; (Vicks tablet,

inhaler, vaporub) A or B.B2. Product line extension:

Adding related products to an established brand : Dhara,

mustard, groundnut, sunflower.

B3. brand reaching out to a new category:

Fair glow cream soapsNo marks cream soaps

Premise : Brand name will help foray in new line

BRAND DECISIONS


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When is Extension advised?

When value proposition reflected by parent brand gelsenhanced thru extension

Vatika Oil Shampoo

Clinic shampoo Oil

When is extension avoided?

If break thought product is to be launched

Nirma Premium vs Soap

Kathleen Cakes vs Ice creams


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BRAND PROLIFERATION

Opposite of Brand extension.

Brand Extension: Introducing new product with existing

brand name

Brand Proliferation : Introduction of products in the same

category with new names.

Helps co. to increase mkt. share Reaches wider market

Cannibalization occurs : can be prevented by positioning

properly with differentiation

Company has to divide resources among brands

Increases expenditure in mktg. efforts; so if not carefullydone, costs will outstrip benefits.

Have small no. of big brands than large no. of small brands

Costs of distribution, advertising.; packaging, inventory costs


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MULTI BRANDS

Introducing different brands in the same

product category to cater to differentbuying patterns of customer.

BRAND DECISIONS


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NEW BRAND NAME

New brand name for new product : If

brand fails, no association; Kinley,Aquafina.

BRAND DECISIONS


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CO

BRANDING / DUAL BRANDING

One or more companies generate

exposure by combining brands : Vimal Airtel, Hero Honda MRF

BRAND DECISIONS


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Key Challenges

Brand repositioning

A brand report cardcan be used to audit abrands strengths and

weaknesses.

Changes inpreferences or thepresence of a newcompetitor mayindicate a need forbrand repositioning.

BRAND DECISIONS


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Packaging includes:

The primary package

The secondary packageThe shipping package

Many factors have influenced the increased

use of packaging as a marketing tool.


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PACKAGING

Process of developing designer / container for a

product

Properly packages product results in repeat

purchases

Food products use transparent packaging soproducts can be viewed

Packaging should be easy to handle, store and

distribute

Has to appeal since it has to get attentionbetween host of other products in shelf space

Change in color patterns, shape, size, change a

customers attitude to the product.


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Packaging gives verbal & non verbal communication

Colors are important because of association :

Red & White cigaretteBritannia; green is freshness, agriculture

Environment friendly packaging

Care to be taken with international brands

Can be a major tool of marketing strategy in terms of

ease of handling, giving it a modern stylish approach,saving costs, better shelf space utilization; giving value

addition through reusable containers : Nescafe in

cutglass tumblers Pearlpet for tea:


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Developing an effective package:

Determine the packaging concept

Determine key package elements

Testing:

Engineering tests

Visual testsDealer tests

Consumer tests


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Labeling functions:

Identifies the product or brand

May identify product gradeMay describe the product

May promote the product

Legal restrictions impact packaging formany products.


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LABELING

Exhibits important information on the product

Legally essential; Manufacturers have to display

contents, ingredients, warnings

Special labels ECOMARKKaaleen

Some products have universal product Code

identified by electronic Scanner being Used in retailbarcode automatically gives pricing

Documents

6.Branding Decisions