–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 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
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