Creating Brands

8/13/2019 Creating Brands

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Creating Brands


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Brand

A brand is a name, term, sign, symbol or

design, or a combination of them, intended

to identify the goods or services of one seller

or group of sellers and to differentiate them

from those of competitors.

Create Communicate


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The Role of Brands

Identify the maker

Signify quality

Create barriers to entry

Serve as a competitive advantage

Secure price premium

Simplify product handling

Offer legal protection


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Advantages of Strong Brands

Improved perceptions of

product performance

Greater loyalty Less vulnerability to

competitive marketing

actions

Less vulnerability tocrises

Larger margins

More inelastic consumer

response to price increase

More elastic consumer

response to price decrease

Greater trade cooperation

Increased marketing

communicationseffectiveness

Possible licensing

opportunities


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Brand Elements

Brand Names

Logos

Slogans

Jingle

URLs

Mascots

Trademarkable devices that identify and differentiate a brand


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Brand Element Choice Criteria

Memorable

Meaningful

Likeability

Transferable

Adaptable

Protectible

Brand Building

Defensive


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Brand Dynamics Pyramid (BRANDZ)

Presence

Relevance

Performance

Advantage

Bonding

Strong Relationship

Weak Relationship


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Young & Rubicams Brand Asset

Valuator (BAV)

Differentiation

Energy

Relevance

Esteem

Knowledge


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Brand AssetValuator

Leading

Brand Strength

Differentiation Relevance

Lagging

Brand Stature

Esteem Knowledge

A Two-Dimensional Framework for

Diagnosing Brands: The Power Grid


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Power Leaders

New

Niche/

Unrealized Potential

Declining

Leaders

UnfocusedBR

ANDSTRENG

TH

(Diffe

rentiationandRelevance)

BRAND STATURE(Esteem and Knowledge)

Eroded

Brand Health Is Captured on the

Power Grid


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Drivers of Brand Equity

Brand Elements

Marketing Activities

Meaning Transference


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Line Strategies

Extensions

Adding additional products to an existing product line

in order to compete more broadly in the industry.


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Advantages of Extensions

Extensions can potentially provide the following benefits

to facilitate new product acceptance:

Reduce risk perceived by customers & distributors

Decrease cost of gaining distribution & trial

Increase efficiency of promotional expenditures

Avoid cost (and risk) of developing new namesAllow for packaging and labeling efficiencies

Variety-seeking


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Advantages of Extensions

Enhance the parent brand image

Improve strengths, favorability, and uniqueness of brand

associations

Improve perceptions of company credibility

Convey broader brand meaning to consumers

Dove

Bring new customers into the franchise and increase

market coverage


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Disadvantages of Extensions

Extensions have risks, too.

They can fail.

Moreover, extensions can potentially result in thefollowing costs:

Cannibalize sales of the parent brand

Hurt the image of the parent brand

If the extension fails

Even if the extension is successful

Forego the chance to develop a new brand name or market the

parent brand differently (opportunity cost)


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Line Strategies

Contractions:

Deleting products from product lines if there are low

sales, cannibalization, obsolesce or few resources.

A brand becomes stronger when you narrow its

focus.


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Some Brand Definitions

Brand line a group of closely related product

items.

Brand mix

all brands that a firm sells. Width refers to how many different product

lines the firm carries

Depth

refers to how many variants of eachproduct are offered


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Gillette

Blades and Writingrazors Toiletries instruments Lighters

Mach 3 Series Paper Mate CricketSensor Adorn Flair S.T. DupontTrac II ToniPresto Right GuardVector Plus SilkienceDouble-Edge Soft and DriLady Gillette FoamySuper Speed Dry LookTwin Injector Dry IdeaTechmatic Brush Plus

Width of the product mix

D

epth

ofthe

productl

ines


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Branding Terminology

Parent BrandThe pre-existing Brand that givesbirth to the sub-Brand

Family BrandParent Brand of multiple

extensions Sub-Brand - A new Brand is combined with an

existing Brand

Dockers, Ritz, i-10


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Parent BrandICICI (financial products)

Sub BrandICICI Prudential Life Insurance

Family BrandParent Brand in multiple product

categoriesGE as in GE Medical Systems, GE Lighting,

GE Plastics

Brand Extension

- Line ExtensionColgate with Active Salt in toothpaste

line- Category ExtensionReliance Petroleum, Reliance

Energy, Reliance Money, WIPRO Computers, WIPRO

consumer products

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Creating Brands