Brand and Branding Strategy Development.

Brand and Branding Strategy Development.Introduction to Brand A brand is defined as a name, term, sign, symbol or special design or some combination of these elements that is intended to identify the goods or services of one seller or a group of sellers.

In short a brand is identifier of the seller or the marketer.

A brand name consist of words, letters and/ or numbers that can be vocalized . Thus the pronounceable part of the brand is called the brand name. for instance Lux, Rin, Mercedes Benz are brand names. Introduction to BrandThe company has to choose its brand name strategically. Each product can have a separate brand name, or one family name can be extended to all .

Family Brand name (Philips, Maggie).. Its cost effective

Individual Brand name(HUL). Its costly strategy, if product fails then effect is restricted to that product only. Introduction to BrandBrand mark is the visual representation of the brand like symbol, design, distinctive colouring or lettering. For instance Mercedes Benz is a brand name and the star with it is the brand mark.

A trade mark is a brand or part of a brand that is registered under Trade & Merchandise Act 1958.A trade mark gives a legal protection which a brand name cant give to a brand.

Characteristics of a good brand name1. It should be easy to remember2. It should be distinctive3. Appropriate4. Registered5. Adaptable Advantages of BrandingHelps target audience in identifying branded items.It creates distinctive image in minds of consumers.

Advantages of Branding3. Helps to maintain brand loyalty.4. Helps to build brand and company images.5. Helps in advertising.6. It adds to consumers psychological satisfaction and sense of security. Brand ImageIt is a mental picture of a brand in the minds of the consumers. In short it is the impression a consumer develops about a brand used by a manufacturer. Brand ImageThe brand image concept is the brain work of David Ogilvy, who is now considered as the father of image advertising.Factors affecting brand image can be briefly stated as follows. Content of Ad PackagingPersonalities Used DistributionPrice Sponsoring of eventsProductAfter sales servicesCompany Brand FatigueWhen the sales of branded products sharply declines over a period of time and a brand no longer looks attractive and acceptable to consumer, brand fatigue takes place.

Here the market share of product goes down. Causes of Brand Fatigue are.. Brand remains unchanged in appearance, fails to come up to the expectations of the buyer, when quality and benefits become outdated. Brand FatigueHow to overcome brand fatigue?1. Offer more benefits2. Repositioning3. Sales promotion4. Brand extension5. Dealers incentives6. Proper advertising agency onida7. Use improved technology. Brand PositioningPositioning means finding a proper location in the minds of a group of consumers or market segment, so that they think about a product or service in the right or desired way to maximize potential benefit of the firm. Brand Positioning can be defined as act of designing the companys offer and image so that it occupies a distinct and valued place in the target customers mind.- Philip Kotler Positioning StrategiesA number of positioning strategies might be employed in developing promotional program.1. Positioning by Product Attribute and Benefits.2. Positioning by Price / Quality3. Positioning by Use or Application4. Positioning by Product User5. Positioning by Competitor6. Positioning by Cultural Symbols7. Positioning by Product Class. Unique Selling PropositionDefinition by Rosser Reeves, father of USP.Unique- The Proposition must be one that the competitor either cannot or does not offer.Selling- the proposition must be so strong that it can move the mass , pull over new customers to your product.Proposition- Each advertisement must make a proposition to the customer, not just into words but say it to the reader that buy the product and you will get this benefit.

Brand EquityBrand equity is the intangible value of a particular company or product based on consumers' perception of the brand name.The positive feelings consumers accumulate about a particular brand are what makes the brand a valuable asset for the company that owns it. Inshort every brand has a value and that value is called as brand equity.The additional money that consumers are willing to spend to buy Coca Cola rather than the store brand of soda is an example of brand equity.

The value of a brand. From a consumer perspective, brand equity is based on consumer attitudes about positive brand attributes and favorable consequences of brand use. American Marketing Association.The incremenatl value of a business

Brand Equity is the value of a brand built up over a period of time. It is composed of four components namely Image, Perception,Awareness and Loyalty.

Brand Equity

Brand LoyaltyOne of the vital base of brand equity its brand loyalty.It is true that it is expensive to gain new customers and relatively inexpensive to keep existing ones. Satisfaction of customers result in brand loyalty. These customers continues to use the brand even though competitors make enough efforts to win them over. Brand Name AwarenessIt is the ability of a potential buyer to recognize or recall that a brand belongs to a certain product category.

Buyers often buy a known brand. A known brand will thus often be selected over an unknown brand and as such it commands good brand equity.

Perceived Quality of the BrandPerceived quality is the customers perception of the overall quality or superiority of a product or service.

Perceived quality do directly influence purchase decision and brand loyalty. A highly perceived qualitative product can command premium price and its brand equity is enhanced.

Brand AssociationA brand association is anything linked to a brand.

There are host of possible associations such as product attributes Advantages of Brand EquityTo customers1. Helping them to obtain appropriate information about products and brands.2. Provides status to the users in the case of luxury products.3. Enhances customer satisfaction with the use experience.4. affecting their confidence in the purchase decision, due to either past use experience with the brand.Provides values to the firm by enhancing.1. Brand Extension- It can help to introduce new products under existing brand names.2. Price and Profit Margins-Well known brands can command premium price and as such higher margins. 3.Trade Leverage- A strong brand can gain support from dealers or stores.4. Competitive Advantage- A strong brand equity presents a real barrier to competitors.5. Brand Loyalty The perceived quality, well known name of the brand, brand associations and other proprietary brand assets can make customers more brand loyal. Brand IdentityAccording to David A. AakerBrand identity is a unique set of brand associations that the brand strategist aspires to create or maintain. These associations represent what the brand stands for and imply a promise to customers from the organisation members.It is a total proposition that a company makes to consumers.the promise it makes is mainly about:Features and attributesBenefitsPerformanceQualityService Support

Brand Identity consist of the following dimensions.Brand as product ( attributes, quality, value, uses, users)Brand as an organisation ( Innovation, genuine consumer concern, trustworthiness)Brand as a person ( brand personality)Brand as symbol ( visual imagery)Brand identity consist of a core identity and an extended identity.

The core identity represents the timeless essence of a brand .It is central to both the meaning and success of the brand. It indicates the reasons why the brand as been brought into existence. It contains the associations that are most likely to remain constant as the brand travels to new markets and products. The elements of the core identity remain more resistant to change than the elements of the extended identity. It is generally the first word that people behind the brand may utter when asked what the brand stands for:Maggiee Instant 2 minsDettol- AntisecpticJohnson and Johnson Baby care products.

The extended brand identity includes elements that provide texture and completeness. Eg. Slogans, Symbols etc.