Brand Management

What is a brand ?

•    A Brand is a

–  Name,

–  Term,

–  Sign,

–  Symbol, or

–  Design intended to distinguish the goods and services from one another

 

Why create a brand?

•    Products, personalities, companies, cities, region and countries compete with each other

•    All of them can be BRANDED

 

Brand worthy entities

•    Goods (Luxor pens, Nokia phones)

•    Services (Kingfisher Airlines, Red Cross)

•    Events (IPL, Kingfisher Derby)

•    Experiences (Disney Land, Essel World)

•    Persons (Aishwarya Rai, Akshay Kumar)

 

1) Create brands to fight competition

Importance of Brands

•    2) Brands are assets because, when properly managed, they provide a secure stream of income for the business.

 

What is a brand?

   3) Brand is a mixture of attributes, tangible and intangible, symbolized in a trademark, which, if managed properly, creates value and influence.

•    “Value”  means “the promise and delivery of an experience”

Purpose of Brand

   4) Brands offer customers a means to choose and enable recognition within cluttered markets.

 

 Origin of Brands

•    Ranch owners branded, or marked, their cattle so they could later identify their herd as their own.

•    Craftsmen used their initials, a symbol, or another unique mark to identify their work and they usually put these marks in a low visibility place on the product.

Branding Today

•    Branding today is used to create emotional attachment to products and companies.

•    Create a sense of a sense of higher quality,

 

What is brand

Brand   =  Product  +  Image

  

What is brand

•    Product has Tangibility, Attributes and Features

•    Image : Intangible

 •    Image : The sum of all communications and experiences received by the consumer and customer resulting in a distinctive image in their mind based on perceived emotional and functional benefits.

•    Brands are a means of differentiating a company products and services from those of its competitors.

 •    Customers will pay a substantial price premium for a good brand and remain loyal to that brand.

•    Brand = Promises of value you or your product make.

 

Brand awareness

Some definitions

•    Brand Image : Customers’ perception

•    Brand Awareness :Brand Recognition + Brand Recall

–  Brand Recognition : ability of consumers to confirm that they have previously been exposed to your brand

–  Brand Recall : The ability of consumers to name your brand

•    Brand preference : they prefer your brand over other brands

•    it refers to the proportion of consumers who know of the brand.

•    Brand awareness can be measured by showing a consumer the brand and asking whether or not they knew of it beforehand.

Brand Awareness

•    Examples of such measures include:

•    Brand recognition - Either the brand name or both the brand name and category name are presented to respondents.

 

•    Soap : Imperial Leather, Moti,

Brand Awareness

•    Examples of such measures include:

•    Brand recall - the product category name is given to respondents who are asked to recall as many brands as possible that are members of the category.

Brand Awareness

•    Top of mind brand awareness - as above, but only the first brand recalled is recorded (also known as spontaneous brand recall).

 •    Lux, Apollo, Dell, Revlon

Brand Extension

•    Product Line extension

•    PLE are variants or sizes extension

•    Dove pears lifebuoys are not PLE, they add various brands to the product line

•    Horlicks – horlicks fro women, junior horlicks

•    Pulsar and pulsar DTS

 

•    Brand Extension

•    Brand name same product new

•    Dove soap, dove shampoo

 •    Product-related extension is more popularly called ‘line extensions’

•    A line extension is typically a product or flavour or fragrance variant.

•    Examples of this are Nirma detergent powder popular and super Nirma detergent powder

 

•    Image-related extensions are those where the brand extension bears some logical or emotional relationship with the parent brand.

 

•    Examples of this are Cinthol moving into talcs from toilet soaps and Zodiac moving into belts from shirts.

•     

•    Unrelated extensions are those where the parent and the brand extensions have little in common but for the brand name.

 

•    A classic case of this is the brand name Godrej appearing on soaps, safety locks, almirahs, typesetters, hair-dyes, refrigerators and other products.

  

Flanker Brand

•    New brand introduced into a product category by a company that already markets an existing brand in that category.

 

•    The flanker may be a different size, flavor, or type of the existing product.

 

•    The new brand is designed to compete in the category without damaging the existing item’s market share by targeting a different group of consumers

Flanker Brand

•    HUL having different varieties of washing powder detergent, e.g.

•    Surf Excel for the Premium segment,

•    RIN for the middle segment and

•    Wheel for the lower segment.

P& G - Pantene –Head & shoulders- Rejoice

Flanker Brand

•    A premium brand that offers high quality at a higher price.

•    One or more “value” brands offering a slightly lower quality or a different set of benefits for a lower price.

•    Flanker branding is important because it allows a company to attract new customers from various market segments.

Flanker Brand - Advantages

•    Gain more shelf space for the company, which increases retailer dependence on the company’s brands.

•    Capture “brand switchers” by offering several brands.

•    Develop excitement within the company by monitoring sales figures of the different brands.

•    Protect the company – giving a product its own unique name means it will not be readily associated with the existing brand. This reduces risk to the existing brand and/or company if the product fails.

•    Companies with a high-quality existing product can introduce lower-quality brands without diluting their high-quality brand names. 

Co-branding

•    Co-branding is when two companies form an alliance to work together

•    Cobranding – has a joint name

•    Bharti axa life insurance

•    Kotak Mahindra

•    Birla sunlife

•    Max newyorklife

•    Co-branding is an arrangement that associates a single product or service with more than one brand name,

Co-branding

•    There are three levels of co-branding

•    Market share : includes joining with another company to penetrate the market

•    Brand extension : is working to extend the brand based on the company's current market share

•    Global branding : tries to achieve a global strategy by combining the two brands

Co-branding Benefits

•    1. to create financial benefits; 
2. to provide customers with greater value; 
3. to improve on a property's overall image; 
4. to strengthen an operation's competitive position; and 
5. to create operational advantages.

Cobranding

Cobrand - Jet Airways – Citibank credit card

Co-brand credit cards

•     ICICI CoBranded BPL Card - ICICI Bank

•     ICICI CoBranded Big Bazaar Card - ICICI Bank

•     ICICI CoBranded Air-Tel Card - ICICI Bank

•     ICICI Affinity SPMIJR Gold Card - ICICI Bank

•     ICICI Affinity HelpAge India Gold Card - ICICI Bank

•     HPCL Silver Master Credit Card - ICICI Bank

•     American Express Kingfisher first credit card

•     'Air India - American Express Co-brand Card‘

 

 

 

 

Happy Meal

Disney and McDonalds

•    The characters from Disney’s new films are distributed as toys with McDonalds "Happy Meals".

•    Ensures publicity for Disney within its relevant target audience and an increase in sales for McDonalds.

•    Disney promotes and advertise new movies both in stores and through ads the fast-food company funds

New Product / Brand

Titan  - Fastrack

HUL - Brooke Bond and Taj Mahal

•    Brooke Bond Taj Mahal, Brooke Bond Red Label, Brooke Bond Taaza & Brooke Bond 3 Roses

HUL  and Lipton  Ice Tea

Frooti and appy fiz

 

Purpose of introducing extensions

For Differentiation

•    A company may introduce a new offering for a new segment, and hence differentiation is required with the reassurance of the mother brand (Junior Horlicks).

 

Newness

•    A brand may become staid and may require a contemporary orientation with the tried and trusted mother brand name (Pond’s cream).

 

Lower market penetration

•    A brand may enter a downscale market and the mother brand may be perceived as expensive, or the brand may want to introduce a sub-brand to compete with a number of regional brands

•    Reno from Sintex water tanks: Though Reno is advertised as a separate brand, it is advertised as “from the manufacturers of Sintex”.

 

Multiple offering

•    When a company has a string of offerings within a product category, there is a need to develop an identity for each offering (Cadbury’s Gold, Perk Picnic, 5-Star to name a few).

 

Upmarket movement

•    A brand may want to move to upscale markets but may find that its equity is not upmarket

 

Different customers

•    A brand may want to address different consumers within the same psychographic segment. Close- Up is a toothpaste positioned towards fun loving, vibrant youngsters.

 

Advantages and Disadvantages of Brand Extension

Advantages

•    Consumer knowledge: New brand has an association with the main brand, awareness already there and the “main task is communicating the specific benefits of the new innovation”

 

•    All Maruti cars are : It is a durable, low budget and a good car

•    All Suzuki cars are dependable so A-star will be dependable

Advantages

•    Consumer trust: the existing well-known-strong brands represent a promise –of quality, useful features etc. - for the consumer. Thus, the extension will benefit from this fame

•    If the fridges are good then the washing machine will be good

•    If the Sony makes good TV then audio system will also be good

 

Advantages

•    Lower cost: you do not have to invest  a lot of money in developing a new brand because the new product use the name of an already well-known brand

  

•    Colgate was know so brush should automatically a good brand

•    Orange à Hutchà Vodafone had to spend a lot of money TV, Bus hoarding, shop danglers, takeaways to say Hutch is Vodafone

Advantages

•    Enhancement of brand visibility: when a brand appears in another field it can “be a more effective and efficient brand-building approach than spending money on advertising”.

 

•    Recognize ITC logo , Tata logo, Reliance logo anywhere

Advantages

•    Defensive strategy: an extension can prevent competitors from gaining or exploiting a foothold in the market

 

Advantages

•    Respect : if you are successful, you increase the respect/stature of your brand overall, and may well regenerate it.

Disadvantage

•    Dilution of the existing brand image : Brand dilution is the weakening of a brand though its overuse.

•    IIT  ( 16 more)

•    Seven IITs are located in Kharagpur, Mumbai, Madras, Kanpur, Delhi, Guwahati, and Roorkee.

•    Nine more IITs in the states of Bihar (Patna), Rajasthan, Andhra Pradesh (Hyderabad), Himachal Pradesh, Orissa (Bhubaneshwar), Madhya Pradesh (Indore), Gujarat (Gandhinagar) and Punjab (Rupnagar), and the conversion of IT-BHU to an IIT

 

Disadvantage

•    Cannibalization

•    Corel and Adobe launch new software every year

Disadvantage

A disaster can occur

•    Finding of worms in dairy milk affected all brands of Cadburys

 

Disadvantage

•    Focus : Lose the tight focus of your existing brand, and therefore its intimacy

•    BPL

•    Ceasefire