KAPFERER represents brand identity diagrammatically as a six-sided prism as shown below:

Internalisation

Externalisation

Constructed Source/Sender

Constructed Receiver

The External Brand Experience include

Name Logo Advertising Brand Identity Environments Products & Service

The Internal Brand Experience include

Business Process Customer Relations Brand Values Training Quality Staff Motivation Recruitment Policies Technology etc..

What is a Brand?

A brand is a name, term, sign, symbol, or design which is intended to identify the goods or services of one seller or group of sellers and to differentiate them from those of competitors.

Importance of Brand

For costumer Identification of source Risk reducer Cost reducer Promise ,bond or patch with product Signal of quality

For manufacturer Identification Legally protecting unique

feature Quality satisfaction Endowing products Competitive advantage

WHAT IS BRAND EQUITY

BRAND BUILDING PRINCIPALS

1. Brand Asset Valuator

Differentiation Energy Relevance Esteem Knowledge

2. Brandz

3. Aaker Model

4. Brand resonance model

Building Brand Equity

Measuring Brand Equity

Managing Brand Equity

CREATING BRAND EQUITY

BUILDING A STRONG BRAND REQUIRES CAREFUL PLANNING & GREAT DEAL

OF LONG-TERM INVESTMENT.

AT THE HEART OF A SUCCESSFUL BRAND IS A GREAT PRODUCT OR

SERVICE, BACKED BY A CREATIVELY DESIGNED

& EXECUTED MARKETING.

The scope of branding All about creating differences

Differences often related to attributes or benefits of product itself, or

By understanding consumer motivations & desires & creating relevant & appealing images round their products

Branding can be applied virtually anywhere a consumer has a choice

Defining brand equity Brand equity is the added value endowed to products

& services

Marketers & researchers use various perspectives to study brand equity

Customer-based brand equity can be defined as the differential effect that brand knowledge has on consumer response to marketing of that brand

A. Customer-based brand equity

A BRAND IS SAID TO HAVE A POSITIVE CUSTOMER-BASED BRAND EQUITY WHEN CONSUMERS REACT FAVOURABLY TO A

PRODUCT & THE WAY IT IS MARKETED WHEN THE BRAND IS IDENTIFIED AS COMPARED TO WHEN IT IS NOT:

3 main ingredients to this definition:1. Brand equity arises from differences in consumer response

2. Differences as a result of consumer’s knowledge about the brand

3. Reflected in perceptions, preferences, & behaviour related to all aspects of the marketing of a brand

Brand equity models

Aaker’s model

A. Aaker’s model

DAVID AAKER VIEWS BRAND EQUITY AS A SET OF 5 CATEGORIES OF ASSETS & LIABILITIES LINKED TO BRAND THAT ADD OR SUBTRACT FROM THE VALUE

PROVIDED BY THE PRODUCT OR SERIVICE TO FIRM AND/OR TO THE FIRM’S CUSTOMERS:

These categories of brand assets are:1. Brand loyalty2. Brand awareness 3. Perceived quality4. Brand association5. Other proprietary assets (patents, trademarks, channel

relationships)

BRAND IDENTITYBRAND 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 & IMPLY A PROMISE TO

CUSTOMERS FROM THE ORGANIZATION

MEMBERS

BRAND IDENTITY (contd.)

CONSISTS OF 12 DIMENSIONS OF BRAND ORGANIZED AROUND 4 PERSPECTIVES:

As a product: product scope, product attributes, quality/value, uses, user, country of origin

As an organization: organizational attributes, local vs. global As a person: brand personality, brand-customer relationships As a symbol: visual imagery/metaphors, heritageCORE & EXTENDED IDENTITY: Core identity: central timeless essence of the brand – remains

constant as brand travels to new markets/products Extended identity: includes various brand identity elements,

organised into cohesive & meaningful groups

STRATEGIC BRAND ANALYSISCustomer analysis Competitor analysis Self-analysisTrends Brand image/identity Existing brand image Motivation Strengths, strategies Brand heritageUnmet needs Vulnerabilities Strengths, capabilitiesSegmentation Organization values

BRAND IDENTITY SYSTEMSBRAND IDENTITY

Extended

Core

Brand as Brand as Brand as Brand asProduct organization person symbol1.Product scope 7.Organization attributes 9.Personality 11.Visual 2.Product attributes 8.Local vs. global 10.Brand- imagery &3.Quality/value customer metaphors4.Uses relationships 12.Brand5.Users heritage6.Country of origin

VALUE PROPOSITION CREDIBILITY*Functional *Emotional *Self-expressive *Support other brands

BRAND-CUSTOMER RELATIONSHIPS

BRAND IDENTITY IMPLEMENTATION

BRAND POSITION*Subset of the brand identity& value proposition *To be actively communicated*At a target audience *Providing competitive advantage

EXECUTION*Generate alternatives *Symbols & metaphors *Testing

TRACKING

Initiating Factors

Financial Goals Sales Growth Competitive Position Product Life Cycle Technology Invention Regulation Material Costs and availability Demographic and Lifestyle Changes Customer Requests Supplier Initiatives

Future Environment Conditions for NPD(Please notice my assessment is different

than that in the book) Capital may be difficult to obtain Cost of Capital is likely to be low Distribution Channels (Supply chains) are

likely to be more integrated Tough and Global Competition Nations will be aggressively supporting

high tech growth oriented industries

Future Environment Conditions for NPD (continued). Markets will become increasingly mature and saturated Consumer lifestyles will continue to change Buyer will be come more sophisticated Internet based trading will critically affect purchase Technological Change will be rapid Product life cycles will shorten Regulatory environment pressures will increase

INTRODUCTION TO BRAND ELEMENTS

BRAND ELEMENTS: It is a brand identities awareness & trade mark device that serve to identify & differentiate the brand.

Than What is a Brand name ? Brand name is the name that a manufacturer applies to a product or a service.

It is one of the main element of a brand that helps the customers identify a brand & diffentiate it from the other. Ex: Bata, Liberty, Levise, woodlands.etc.

Criteria for choosing Brand Elements: There are 6 main criteria for choosing brand elements, The first 3 are -1. Memorable,2.Meaningfullness 3.Likable –are “Brand

Building" The last 3 are – 4. Transferable, 5. Adaptable,6.Protectable –are “Defensive devise”

Criteria for choosing brands Elements MEMORABILITY: A necessary condition for building

brand equity is achieving a high level of brand awareness. Ex: Nano car

MEANINGFULNESS: Choosing brand elements to build awareness, brand elements can also be chosen whose inherent meaning enhance the formation of brand associations. Brand elements may take on all kinds of meaning, varying in descriptive, as well as persuasive, content.

LIKABILITY : Independent of the product or service, how much would consumers like the brand elements.

TRANSFERABILITY : The forth general criterion concerns the transferability of the brand element- in the both a product category and geographic sense.

ADAPTABITITY : The more adoptable and flexible the brand element, the easier it is to update it. For example, logos and characters can be given a new looking or a new design to make them appear more modern and relevant.

PROTECTABILITY : Brand element is protectable-both in a legal and competitive sense. In term of legal considerations, it is important to1.choose brand elements that can be legally protected on an international basis, 2.formally register them with the appropriate legal bodies, and 3. Vigorously defend trademarks from unauthorized competitive infringement.

TACTICS FOR BRAND ELEMENTS Brand Names Logos & symbols Slogans URL’s Characters Jingles Packaging

Leveraging Brand Knowledge

Meaning of brand knowledge: It refers to the knowledge that a consumer has over the brand, Brand knowledge refers to brand awareness. It measures a “customer mind set” because to capture how the brand is perceived in the customers mind.

Leveraging pyramid:

Leveraging Product Life cycle

Dimensions of brand Knowledge Brand knowledge can be characterized in

terms of two components, 1. Brand Awareness 2.Brand image Brand Awareness: It relates to strength of

the brand or trace in the memory as reflected by consumers ability to identify the brand under different conditions. it consist of brand recognition & brand performance.

Consequence of brand Awareness Brand awareness plays imp role in

consumers Decision making like. 1.Learning Advantage 2.Consideration Advantages 3.Coice Advantages 4.Consumer Purchase Motivation 5.Consumer purchase Ability

Establishing Brand Awareness 1.Repeated Exposure 2.Develop a slogans or Jingle 3.Strong Category Associations 4.Shock Advertising

8.33

The Brand Value Chain

The brand value chain has several basic premises. Fundamentally, it assumes that the value of a brand ultimately resides with customers.

Brand Value Chain

ProgramMultiplier

MarketingProgram

Investment

CustomerMindset

MarketPerformance

ShareholderValueVALUE

STAGES

- Product- Communications- Trade- Employee- Other

- Awareness- Associations- Attitudes- Attachment- Activity

- Price premiums- Price elasticity- Market share- Expansion success- Cost structure- Profitability

- Stock price- P/E ratio- Market capitalization

ConsumerMultiplierFILTERS

- Clarity- Relevance- Distinctiveness- Consistency

- Channel support- Consumer size and profile - Competitive reactions

- Market dynamics- Growth potential- Risk profile- Brand contribution

MarketMultiplier

8.35

Value Stages Marketing program investment

Any marketing program that can be attributed to brand value development

Customer mindset In what way have customers been changed as

a result of the marketing program? Market performance

How do customers respond in the marketplace?

Shareholder value

8.36

Multipliers Program quality multiplier

The ability of the marketing program to affect customer mindset

Must be clear, relevant, distinct, and consistent Customer multiplier

The extent to which value created in the minds of customers affects market performance

It depends on factors such as competitive superiority, channel support, and customer size and profile

Market multiplier The extent to which the value generated through brand

market performance is manifested in shareholder value It depends on factors such as market dynamics,

growth potential, risk profile, and brand contribution

Brand hierarchy

The means of summarizing the branding strategy by displaying the number and nature of common and distinctive brand elements across the firm’s products. Involves ordering and ranking all brands across products.

DupontIngredient brands Corporate brandsStainmaster, Lycra automotive; flooringTeflon, Dacron

Kapferer’s branding system

Product brand - exclusive name to single product (Tide, Dash)

Line brand - same concept across different products (VW)

Range brands - one name on group of products having same ability (Green Giant)

Umbrella brand - supports products in different markets (Canon cameras, copiers, office equip

Source brand - products directly named (CK clothing, cologne)

Endorsing brand - wide diversity of products under product, line brands or range brands (GM)

What is Branding Strategy?

Branding strategy for a firm reflects the number and nature of common and distinctive brand elements applied to the different products sold by the firm.

Breadth of Branding Strategy Nature & number of different products linked to

the brands sold by the firm Considerations include:- Which products the firm should manufacture and

sell. Eg: Should Lacoste launch a women’s line? - How many diff. product lines the firm should

carry (Breadth of product mix)- How many variants should be there in each

product line (Depth of product mix)

Depth of Branding Strategy Number & nature of different brands

marketed in the product class sold by the firm.

Multiple brands in the same product category increase market coverage. GM pioneered it; now everybody does it!

Building equity at different levels

Corporate or company level Family brand level Individual brand level Modifier level Product descriptor

BRANDING STRATEGIES

Sub-branding

Creating new brands which are part of the parent brand family – expressed as suffixes of the parent brand.

e.g Nike Air Jordan is a sub-brand of Nike which is the parent brand. Air Trigo, Air Mohawk are sub-brands of Nike Air.

Apple I-Pod, I-Pod Mini, I-Pod Shuffle and now the I-Pod Nano

Umbrella branding

When you have many sub-brands, each linked to a common brand, then the common brand is known as the umbrella brand

E.g. Ford Taurus, Ford Explorer, Ford Focus, Ford Ranger, Ford Five Hundred, Ford Freestyle, Ford Expedition, Ford Thunderbird, etc.

Flanker Brand

Different brand name – same productPurpose: Pre-empt competition, cover the

market more completely (protect your flanks)Problem: some cannibalization is expected.

E.g. Thums Up and Coca Cola in India General Mills – Robin Hood and Gold

Medal brand flour Tide and Cheer from P&G

Brand Extension

Same brand name, new product line e.g. Reebok shoes and Reebok water. Nike shoes and Nike casuals. Chevy cars and Chevy men’s cologne. Hooters restaurants and Hooters airline

The concept of congruence determines the success of a brand extension strategy. E.g. Johnson’s baby powder and Johnson’s baby oil – high congruence. But imagine Lysol toilet bowl cleaner and Lysol toothpaste!!!

Line Extension

Same brand name, different product in the same product line. E.g. Ivory soap and Ivory shampoo; IBM PCs

and IBM laptops Line extensions are safer strategies than

brand extensions since congruence is always higher.

Product-Market Matrix

NEW

OLD

OLD NEW

Product

Market

DiversificationBrand extension

Product DevelopmentCo-branding

Ingredient branding

Market DevelopmentBrand extensionLine extension

Market PenetrationSub-branding

Flanker brandsCo-branding

BrandName

ProductLine

EXISTING

EXISTING

NEW

NEW

LineExtension

FlankerBrand

Brand Extension

Diversification

Product Line-Brand Matrix