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Branding

Historical Evolution of Brands


Branding was stamping for identification animals were "Branded"
for identification of their ownership
Branding was defined by Oxford Dictionary as, 'to mark indefilbly
as proof of ownership, as a sign of quality, or for any other purpose.
Hence, Branding began as a legal issue even on products, however is
soon became important in that-
Source of Product became traceable
Quality was assured
Consumer loyalty to a producer became legitimate and expected
Rapid rise of urban growth from 1960s and growing distance
between producer and consumer led to rapid growth in Branding
The growth was supported by advent and proliferation of MASS
MEDIA and ORGANISED RETAILING. The former facilitating
branding and the latter necessitating it
From 1980s Intangible Value addition has come to be a chief value
building element and hence today all the more importance of
Branding 2
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.
The name could be like Videocon, Lux
The term could be like HMT, HLL, P&G
The symbol or design could be like of HLL, M of
McDonalds,
The word LG of LG Electronics etc

A Brand is a distinguishing name and/or symbol (such as a


logo, trade mark, or package design) intended to identify
the goods or services of either one seller or a group of
sellers, and to differentiate those goods or services from
those of competitors.
David Aaker
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Brand !!!
A product can be manufactured in a factory,
whereas the brand takes birth in marketing office
of the manufacturer or ad-agencies office.
A product may die but well maintained brand
never dies.
To quote few brands like Dalda, Surf, Lifebuoy, Pears are
more than 50 yrs old
Corporate brands like Tata, Godrej, Singer are at least
100 yrs old
Remember only those products become the brand
which provide the value to the customers and those
which do not provide value, remain as commodity.

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Branding defined

Branding is the process of stamping a product with some


identifiable name or mark or combination of both.
Branding means providing a distinct individuality to a
product.
Branding is a process of brand development and its
management (which includes issues as Brand Extension,
Brand Health Monitoring, Brand Rejuvenation etc)
Brand is a collection of associations, commercially
material with regard to a commercial entity.
(which can be Product/product category/firm/Places
/personality & like entities)

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Significance of Branding

Importance to consumers
1. Brands provide a tool of self expression
2. Brands simplify decision making process.
3. Brands assure minimum quality.
4. Less risk
5. Brand and emotional dimension
6. Brands encapsulate social meaning
7. People use possessions not only to define themselves
as individuals, but also to define which group they
belong to and not belong to.

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Significance of Branding

Marketers point of view


Brand can be built for anything
Since brand is created around differentiation, marketer can
avoid commodity trap.
Appropriate market positioning is key success factor.
Brand and Profitability
Brand acquires a higher sale price if it is ever sold to another
company.
Can charge High prices
Access to distribution network with shelf facings in the stores
High consumer awareness and loyalty
Economic in terms of marketing expenses

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Brand Elements

A variety of brand elements can be chosen that


inherently enhance brand awareness or facilitate
the formation of strong, favorable, and unique
brand associations:

Brand Name
Logo
Symbol
Character
Packaging
Slogan

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Brand Elements Choice Criteria:
General Considerations
Memorable Adaptable
Easily Recognized Flexible & Updateable
Easily Recalled Protectable
Meaningful Legally
Credible & Suggestive Competitively
Rich Visual & Verbal Transferrable
Imagery Within & Across
Product Categories
Appealing
Across Geographical
Fun & Interesting Boundaries &
Aesthetics Cultures

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Levels of Brand Hierarchy

Corporate brand level


The highest level of the hierarchy involves one brand the
corporate or company brand with or without combining
family brands or individual brands (Reliance)
Family brand level
A brand that is used in more than one product category but
is not necessarily the name of the company (Vicks)
Individual brand level
A brand that has been restricted to essentially one product
category (e.g. Vimal)
Modifier
Its a specific item or model type or a particular version or
configuration of the product (e.g. Lifebouy plus)

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Types of Brands
Generic product:
product item characterized by plain label, with no
advertising and no brand name
Manufacturers brand or National Brand:
Brand brand name
owned by a manufacturer or other producer
Private brands:
brands brand name placed on products marketed
by wholesalers and retailers
Captive brands:
brands national brands that are sold exclusively by
a retail chain
Family brand:
brand brand name that identifies several related
products
Individual brand:
brand unique brand name that identifies a
specific offering within a firms product line and that is not
grouped under a family brand

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Laws of Branding-Ten commandments

1. Brands are not about you. Brands are about them.


2. If the branding is wrong, so is the everything else.
3. Advertising grabs their minds. Branding gets their hearts.
4. Build the brand from your strengths.
5. If you cannot articulate it, neither can anyone else.
6. The success of brand varies directly with the ability to
accept the mantle of the leadership.
7. The stronger the your brand, the less susceptible you are
to pricing issues and competition.
8. The brand begins in the business plans.
9. Advertising is not branding.
10. There is no such thing as co-branding.

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Use of Brand as a Device

Brand is useful as a-

1. Sign of Ownership
2. functional device
3. Risk reducer
4. Differentiating device
5. Symbolic device
6. Legal device
7. Strategic Device

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Commodity to Brand

Price Intangible
Differentiation Value
/ Margins Addition

Product/Image Differentiation
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Brand Loyalty

The strength of the consumers preference for a


brand corresponding to his readiness or otherwise
for using a competing brand can be termed as one
definition of Brand Loyalty

Brand Loyalty is often the core strength of the


brand and often a major bearing variable in
determination of brand equity

Consumers need a reason to change


Consumers do not need a reason to change
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Brand Equity

Brand equity is the added value endowed on products and


services, which may be reflected in the way consumers,
think, feel, and act with respect to the brand.
The set of associations and behaviour on the part of a
brands customers, channel members and parent corporation
that permits the brand to earn greater volume or greater
margins than could without the brand name. -Leuthesser
Brand Equity is a set of brand assets and liabilities linked to
a brand, its name and symbol, that add to or subtract from
the value provided by a product or service to a firm and/or
to that firms customers - David Aaker

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Brand Equity

Feldwick simplifies the variety of approaches,


by providing a classification of the different
meanings of brand equity as:
The total value of a brand as a separable asset
when it is sold, or included on a balance sheet;
A measure of the strength of consumers attachment
to a brand;
A description of the associations and beliefs the
consumer has about the brand.

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BRAND EQUITY : AN OVERVIEW
Perceive
d Brand
Name
quality association
awareness
BRAND EQUITY Other proprietary
Brand loyalty Name brand assets
Symbol
Provides value to Provides value to firm
by enhancing:
customer by enhancing
-Efficiency &
customers: effectiveness of
Interpretation/ marketing programs
Processing of -Brand Loyalty
information Prices / Margins
Confidence in the Brand Extension
purchase decision Trade leverage
Use satisfaction Competitive Advantage
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Personality Service
Character Technology Personality
Leadership Lifestyle
Etc
Functional Etc Occupation
Soft attributes attributes Age Etc.
Soft
attributes Functional
Corporate image attributes
Image of product
Image of maker
Image of user
Market Brand Image Image of
Growth Margins
Etc. competing
Brands
All new image
factors contributing
to brand equity Brand Equity Market value of a brand 20
The Concept of
Customer-Based Brand Equity

CBBE is defined as the differential effects


that knowledge about the brand- in terms of
brand awareness and strong, favorable and
unique brand associations has on customer
response to the marketing of that brand.

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Determinants of
Customer-Based Brand Equity

How much customer is aware of and familiar


with the brand

How strong, favorable, and unique brand


associations customer holds in memory

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Building
Customer-Based Brand Equity

Brand knowledge structures depend on . . .


The initial choices for the brand elements
The supporting marketing program and the
manner by which the brand is integrated into it
Other associations indirectly transferred to the
brand by linking it to some other entities

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Benefits of
Customer-Based Brand Equity

Enjoy greater brand loyalty, usage, and affinity


Command larger price premiums
Receive greater trade cooperation & support
Increase marketing communication effectiveness
Yield licensing opportunities
Support brand extensions.

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Customer-Based Brand Equity
as a Bridge

Customer-based brand equity represents


the added value endowed to a product
as a result of past investments in the
marketing of a brand.
Customer-based brand equity provides
direction and focus to future marketing
activities

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CBBE Pyramid

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Strategic Brand Management

Strategic brand management involves the design


and implementation of marketing programs and
activities to build, measure, and manage brand
equity.
The strategic brand management process is
defined as involving four main steps:
1) Identifying and establishing brand positioning and
values
2) Planning and implementing brand marketing programs
3) Measuring and interpreting brand performance
4) Growing and sustaining brand equity
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Strategic Brand Management Process

STEPS KEY CONCEPTS


Mental maps
Identify and Establish Competitive frame of reference
Brand Positioning and Values Points-of-parity and points-of-difference
Core brand values
Brand mantra

Plan and Implement Mixing and matching of brand elements


Brand Marketing Programs Integrating brand marketing activities
Leveraging of secondary associations

Brand Value Chain


Measure and Interpret Brand audits
Brand Performance Brand tracking
Brand equity management system

Brand-product matrix
Grow and Sustain Brand portfolios and hierarchies
Brand Equity Brand expansion strategies
Brand reinforcement and revitalization
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