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
• 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
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