U13FTE 504

APPAREL BRAND MANAGEMENT

 UNIT I

Basics of Branding
Branding Concept - image, identity, loyalty.
Brand name
Branding strategy - Brand positioning -
Brand equity.
Intellectual property rights – Trademark and
brand registration.

2
SALES - Activity of selling products.
Transaction between two parties where buyer receives goods
in exchange for money.
PULL Activity - Demand pulls product

MARKETING – from concept to customer.

Includes coordination of 4 elements called 4 P's of marketing:
(1) identification, selection and development of product.
(2) determination of its price
(3) selection of distribution channel
(4) development and implementation of promotional strategy.
PUSH Activity - Supply pushes product into market
creating demand

3
 BRAND

4
5
Brand - Product’s uniqueness -

design, sign, symbol, words, or combination of these

employed in creating image that identifies product and

differentiates it from its competitors.

Creates strong desire, adherence, demand with consumers

Starts with PUSH and Transforms into PULL

Transforms CONSUMERS into CUSTOMERS

It is marketing EMOTION rather than material 6

Marlow’s Hierarchy of Needs

7
B - Basic Desire - Gives over and above

R - Reputation - Relationship

A - Attitude / Affiliation / Alliance

N - Nurture relationship

D - Desire - Make Strong / Demand - sustain long

time - increase

8
What is a BRAND
Style: A
Formal Long Sleeve
Plain Dyed
Cotton
Gender: Men
Collar Style: Polo Neck
Price: Rs.400 MRP
Style: B
Formal Long Sleeve
Plain Dyed
Cotton
Gender: Men
Collar Style: Polo Neck
Price: Rs.1400 MRP
1. Fabric
2. Construction
3. Quality

A=B

11
 Style A
Unknown Style B
Manufacturer ARROW
Consumer opts for Arrow

WHY?

BRAND

13
 BRAND

• Definition of branding is sum total of company’s

value - including products, services, people,
advertising, positioning and culture.

• Brands give potential clients firm idea of what they

are buying before they buy it, making purchasing
decision easier.

• Customers trust strong brands because they know

what to expect.
14
3 key ingredients of strong brand:

1. Brand Values

2. Brand USP

3. Cohesive Visual Style

15
16
17
 History of Branding

Why it became important

What problems shaped the branding

18
Industrial Revolution:
• Production Capacity went
up
• Ability to mass produce
products outstripped
demand, product choice
proliferated.

The Depression:
• Consumers purchasing
power declined
• Consumers tightened
belts
• Product demand dropped
19
In both the periods selling products to customer
became tough proposition

Supply > Demand

Manufacturer had to differentiate his product from

other competitors to attract customers

One method of Differentiation = BRAND

20
Branding as a theory comes from
fast moving consumer goods
• Average number of brands
in a supermarket went up
from 20,000 in 1990 to
over 42,000 in 2010
• Drive to differentiate product
on shelf is driving force
behind “branding”
methodologies
• Branding –
is all about packaging,
is all about product,
is all about volume

21
Why Branding – Reason = Threats

Potential
Entrants

Suppliers Buyers
COMPANY

Substitutes

22
Buyers
• Demand for low price
• High quality
• Wider choice
• Changes in purchasing power
Potential Entrants
• More supply – reduction in
supply – demand gap
• New product / service variables
• New distribution channels
Suppliers
• Bargaining power
• Competitor walking away with
supplier
• Fragmentation in supply
Substitutes
• Multiple products with same
functions / similar features
• Low cost alternatives
• Added features for same cost /
slightly higher cost
• New trend
23
 How to Brand - Differentiation
Strategies
1. Product features 1. Alter product / service
features
2. Linkages between functions 2. Relations between divisions
3. Timing 3. First entrant / later entry
Entry – Exit timings
4. Location 5. Market compatible,
distribution, competition
5. Product / Service – Mix 6. Allied products offers /
services offers

6. Reputation
6. Quality / Price / Service

24
 Differentiation

• Generate customer
value

Differentiation Strategy • Provide perceived

value

• Be difficult to copy

25
It is possible to brand everything

• Physical good (Nestle soup, Pantene shampoo or Maruti Swift

• Service (Airlines, insurance, education)

• Store (Big Bazaar, BATA stores)

• Place (Kerala State - God’s own country)

• Event (Pushkar Mela, Dassera - Mysore)

• Person (Shahrukh Khan, Sachin Tendulkar)

• Organization (UNICEF or BCCI)

26
• Manufacturing / Service Providing Company – Reliance, BSNL
 What is a Brand?

Brand (n): “Name, Sign or Symbol used to identify items

or services of seller(s) and to differentiate them
from goods of competitors.“

Simply put, brand is a promise.

By identifying and authenticating product or service –
it delivers pledge of satisfaction.

Brand is collection of perceptions in mind of consumer.

27
It works to remind some key points:

Point 1
It states clearly that brand is very different from product
or service
A brand is intangible and exists in mind of consumer

Point 2
It makes it clear how to build a brand
Brand is built not only through effective communications
or appealing logos
Brand is built through Total Experience that it offers

28
 What then is a brand?

• First, a brand is not a logo

• Second, brand is not a corporate identity system

• Third, brand is not its packaging

• Finally, brand is not a product

A brand is a person’s gut feeling about a product, service,

or a company.
29
 Product vs Brand
A product is made in a factory…

A Brand is bought by the customer

A Product can be copied…

A brand is unique

A Product is quickly outdated…

A Brand is Timeless
30
Everything must have a value proposition.

• What are brands anyway?

• Why bother with branding?
• Do strong brands lower customer turning away?
• Do strong brands manage customer selection?
• Do strong brands ensure greater loyalty when purchase
decision is considered as high risk?
• Do strong brands lead to lower information costs in
purchase process?
• Do strong brands result in “imperfect” markets and
provide their owners monopolistic powers?
• Do strong brands reduce risk associated with future cash
flows?
• Do strong brands result in growth and acceleration of
cash flows?

31
 Origin of Branding

The word brand is derived

from Old English meaning,
“Burning Stick”.

Ancient Egyptians used

livestock branding as early as
2700 BC as a theft deterrent,
as stolen animals could be
readily identifiable.

32
 Why Bother with Branding?
From consumer viewpoint, brand is a signal of quality.
They trust manufacturers stand behind their brands.
Positive experience with brands helps establish both
preference for brand as well as an emotional attachment.

Brands reduce risk for consumers - there are many potential

risks involved in purchase.

These include:
• Functional risk - will the product perform to expectations?
• Physical risk - does the product pose threat to the health?
• Financial risk - is the product worth the price?
• Social risk - will the product result in embarrassment?
• Time risk - will there be associated opportunity costs with
product failure?
33
Strong brand authenticates source of goods, and promises
value of goods sold.

By promise of value consumer is assured in purchase

decision that Reward - To - Risk Ratio of purchasing
strong brand is higher than purchasing similar unbranded
good.

Brand reduces risk for buyers, but creates uneven playing

field among competitors.

Owners of well-regarded brands enjoy advantage over

competition.

Consumer preference and loyalty for brands enable pricing

flexibility, on the margin and provide monopolistic powers.
34
35
 Do Strong Brands Lower Customer
Turning Away?
Customer turning away rate or customer
retention rate - important measuring tool in
marketing.

Cost of acquiring customers is at least five times

less than that of customer retention.

It has been established that Brand plays

significant role in customer turning rate or retention
rate.

36
 Do Strong Brands Manage Customer
Selection?
Selecting right customers leads to lower performance
risk for a business.

Best customers to target include those who exhibit greatest

returns for business, either in terms of lower cost to serve
or greater revenue capture, or both.

Strong brands have both retention component and

attractant component.

Strong family brands help introduce customer to related

products within and across product lines, which in long run
lowers cost of doing business.
37
 Do Strong Brands Ensure Greater Loyalty When
Purchase Decision is Considered as High Risk?

• Some purchases are more risky than others.

• inner wear or hand kerchief vs highly ornamented silk

saree.

• Higher the risk more important brand becomes in

purchase criterion

• Brands speaks about

image, reliability, lifestyle, quality, price, expectation, a
comfort level, a history, even an aspiration.

38
 Do Strong Brands Lead to Lower
Information Costs in Purchase Process?
Lower information costs in purchase process results in
lower perceived risk.

One approach to measuring brand equity is to decompose

it into two components:
(1) liking / emotional component, and
(2) information cost component.

Costs associated with making choice among competing

options include search and evaluation costs, strong brands
have positive associations (e.g quality) important in
purchase situation and incurs lower information costs.
Lower information costs reduce perceived risk, and result in
enhanced purchase likelihood therefore enhanced market
share. 39
Do Strong Brands Result in “Imperfect”
Markets and Provide Monopolistic Powers?
Brand loyalty (or customer retention) is evidence that
customer preferences are not determined by lowest price.

Brands, by influencing consumer preferences, make

markets imperfect.
They reduce price competition, and in doing so lower price
elasticity.
And, as provided by protection of trademark law, a brand is
legal mini-monopoly.
Brand management - legally protected method of making
markets imperfect.
40
Do Strong Brands Increase Liquidity of
Firm’s Stock?

Strong brands are associated with higher awareness levels

that not only help support sales of the firm’s goods, but also
create awareness of the firm as an investment source.

Broader ownership of stock enhances liquidity and thus

enables a firm with strong brands to convert assets into
cash.

41
 Do Strong Brands Reduce Risk
Associated with Future Cash Flows?
Strong brands reduce volatility of revenues by relevantly
differentiating offers of firm, thereby enhancing loyalty.

Enhanced loyalty lowers the long-term investments

associated with maintaining a customer base.

Enhanced loyalty also reduces the volatility of cash flow,

as customer base is less likely to switch, keeping demand
more stable.

42
 Do Strong Brands Result in Growth &
Acceleration of Cash Flows?
Strong brands lead to cash flow acceleration due to more
rapid market penetration.
Brands reduce perceived risk for customer.

faster new product trial rate, higher referral rate,

and faster time - to - adoption.

Brands with market channel power have luxury of being

able to enter markets late without hindrance to subsequent
market dominance.

This allows firm to reduce risk by letting other competitors

to bear the risk of market experimentation.
43
Microsoft was not the first to launch a word processor,
spreadsheet, media player, graphic operating system etc.
Yet it currently dominates market for these applications.

Brands need to constantly nurture and understand their

customers.
They must understand that needs are not static.

Most of leading brands in India today are positioned

towards premium segment.

Across various sectors increasing number of new

products are now being introduced at lower price points

44
 Objective of Branding

Principal objective is to build relationship with

consumers,
rather than merely to make single sale.

Essence of that relationship consists of

Strong bond between consumer and brand.

45
Six Strategies for building relationship:

1. Linking brand to particular need

2. associating it with pleasant mood
3. appealing to subconscious motives
4. conditioning consumers to prefer brand through
reward
5. penetrating perceptual and cognitive barriers to
create preference
6. providing attractive models for consumers to
emulate.

Choice of individual strategy or combination depends

on nature of branded product and success of strategy
depends heavily on marketer's understanding of
preference building and bonding process. 46
 Brand is any...

name... Coca-Cola term… Coke

design…

sign…
symbol…
or combination…

…that distinguishes a product from its competition. 47

Overall ‘branding’ of company or product can also stretch
to logo, symbol, or even design features (e.g. regularly
used colours or layouts, like red and white for Coca Cola)
that identify company or its products / services.

Nike brand name is known throughout world, people can

identify name and logo even if they have never bought any
products. Not only is company name, but logo (the ‘tick’
symbol) is also a strong piece of branding in its own right.

Majority of people aware of company can also identify

it (or its products) from the symbol alone.

48
 Aspects of Brand
Brand is personality - of a product, service or company
and how it relates to key constituencies:
Customers, Staff, Partners, Investors etc.

Brand has two aspects

1. psychological aspect
2. experiential aspect.

Experiential aspect consists of sum of all points of contact

with brand and is known as Brand Experience.

Psychological aspect, Brand Image, is symbolic construct

created within minds of people and consists of all
information and expectations associated with product
49
 Brand Image

Mental image that reflects way consumers

perceive brand

Physical: Design, letters, shapes, art, colours

Psychological: Emotions, beliefs, values

50
 Value of Brand
Brand Promise
Consumers may look on branding as important value
added aspect of products, serves to denote certain
attractive quality or characteristic

From perspective of brand owners, branded products or

services command higher prices.

In case of two similar products, but one has no associated

branding (generic product), people may often select more
expensive branded product on basis of quality of brand or
reputation of brand owner.
51
This requires understanding of key elements of branding:
Identity and Delivery ‘ID’.

Common notion is branding requires

Differentiated product,
supported by strong positioning and
effective communication.

This is true but tells only half the story.

Most brands correctly invest their resources in "I" part of

branding game
i.e. Identity Development, - communication, design,
packaging,
But run out of resources when comes to "D" ‘Delivery’ part
which focuses on how whole channel consistently delivers
brand to consumer. 52
 Brand Identity

A Brand Identity provides direction, purpose and

meaning for brand.

It is central to brand’s strategic vision and driver of one

of four principal dimensions of brand equity:
associations, which are heart and soul of brand.

53
 Brand Equity and Brand Identity

Brand Brand Brand

Identity Associations Equity

54
 Brand Identity

Brand Identity is unique set of brand associations that

brand strategist aspires to create or maintain.

These associations represent what brand stands for and

imply promise to customers from organization.

55
 Brand Identity is more than...

• Brand image (how brand is perceived now)

• Brand position (part of brand identity and value

proposition to be actively communicated to target
audience)

• Product attributes

• An external perspective (i.e., customer-based)

56
 Brand Identity System
A brand’s identity viewed from four perspectives:

– as product
– as organization
– as person
– as symbol

When viewed all these perspectives, it is easier to develop

/ reinforce
Value Proposition – Brand Promise
Credibility and,
Relationship with customer. 57
 Brand Identity System

Brand Identity

Brand as Brand as Brand as Brand as

Product Organization Person Symbol

Value Proposition Credibility

Brand-Customer Relationship
58
 Dimensions of Brand Identity

Brand as Product
– Product Scope
– Product Attributes
– Quality / Value
– Uses
– Users
– Country of Origin

59
 Dimensions of Brand Identity
Brand as Organization
– Organization attributes (e.g., innovation,
consumer concern, trustworthiness)
– Local vs. Global

60
Harley – Davidson

Custom Built + Precision

61
 Dimensions of Brand Identity

Brand as Person
– Personality (e.g.,
genuine, energetic,
rugged,…)

– Brand - customer
relationship (e.g.,
friend, adviser,…)

63
 Dimensions of Brand Identity
• Brand as symbol
– Visual imagery and
metaphors
– Brand heritage

64