THE CONCEPT OF

BRANDING

SMITU MALHOTRA
What is a brand?

 What does a brand mean to you?

 What are your favourite brands and
why?

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A brand is not merely a name.
It is a marketer’s promise
to deliver a specific set of features,
benefits and services consistently.

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Many attributes are difficult to assess, so
consumers rely on limited cues

To Assess• ….consumers use

 Speaker Quality  Speaker Size
 Window Cleaning  Blueness
efficacy
 Dish soaps power  Amount of Suds
 Strength of Cleaners  Intensity of smell
 Workmanship of a car  The sound of closing
door
 Airline Safety  Cleanliness of the seats
 Quality  Brand Name

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 History of brands
 Means “to burn”

 Mark of trust

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A brand may convey
up to six levels of meaning.

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A brand signifies (1)
1. Attributes (Mercedes: well engineered, expensive,
durable, well built cars)
2. Benefits – both functional and emotional
3. Values (Mercedes: safety, prestige etc)
4. Culture (Mercedes: German, efficient, organized,
high quality)
5. Personality – (Mercedes: ‘no nonsense’)
6. Kind of user – (Mercedes: ‘those who have arrived’
not a college student or secretary)

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For customers, brands are products
with added values –
often intangible, always desirable.

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Added values arise from:

 Brand experience / familiarity

 Belief in the efficacy of the brand
 Identification with user profile
 Appearance due to packaging
 Advertising, sponsored events
 Testimonials / endorsements

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Some Terms

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Brand Name

That part of the brand identity

which can be pronounced

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 Brand Mark

That part of a brand identity which is recognizable but cannot

be uttered

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 Trade Mark

A brand identity that is legally protected from fakes, ‘look

alikes’ and
other unscrupulous competition

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 Branding

Particularly important for FMCG –

personal care items, packaged foods,
household cleaners, soft drinks,
oral gratifiers, proprietary medication.

Also for services aimed at individuals.

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 Brand: name, term, sign, symbol, or design
intended to identify the products or services and
to differentiate them from the products offered
by competitors.
 • Brand: a psychological concept (or set of
associations)
 • Brand(ing): The art of taking something
common and improving on it in ways that make
it more valuable and meaningful.

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 WHY BOTHER WITH BRANDING?

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Customer’s viewpoint

 Authenticates the source of goods and

promises value
 Reduces risks
Functional
Physical
Financial
Social
Time

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Firm’s viewpoint

 Differentiates the product

 Creates barriers to entry
 Simplifies product handling , inventory
management
 Brand building decreases customer
sensitivity to price
 Brand loyalty assures demand for the
product
 Speeds up process of decision making

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 Product vs Brand

A Product is made in a factory….a Brand is

Bought by a customer

A Product can be copied…a Brand is Unique…

A Product is quickly outdated…a Brand is

Timeless

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Product Vs Brand
Brands differentiate Products
 Coconut Hair Oil : Parachute vs Dabur Vatika
 Cola: Coca Cola vs Pepsi
Products largely undifferentiated: Product choice
function of Convenience/ Availability or Price
 Petrol : BPCL vs IBP vs….
 ATM : HDFC vs HSBC vs…..
 Mineral Water : Bisleri vs Bailey vs Kinley…..

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Classification

 Functional brands – superior economy

and/or superior performance
 Example
 Gillette razors
 Ariel and tide
 McDonald’s
 Dell Computers

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 Image brands – offer unique set of
associations
 Example
 Colas
 Cigarettes
 Parker pens
 Nike shoes
 Lux

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 Experiential Brands – focus on how
consumers feel when interacting with the
brand
 Example
 Disney
 Barista , CCD
 PVR cinemas

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Branding strategy

 No brand
 Corporate brand
 Family brand
 Individual brand
 Private brands vs Manufacturers brand

 Can anything be branded?

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Ways in which a Brand can be
Extended
1. Line Extension
2. Brand Extension 2. New Product 4. New Product
3. Multiple Brands Same Brand New Brand
4. New Brands
1.Same Product 3.Same Product
Same Brand New Brand

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 Today’s Need:
Continuous Process of Revitalization

To Prevent the Brand from growing old

Revitalization …STAY YOUNG
Starts at an early age,
Before the brand shows
a decline in Sales
SALES

TIME 26
*Some brand names are "too
successful"*

 Linoleum 􀂟 linoleum
 Nylon 􀂟 nylon
 Trampoline 􀂟 trampoline
 Escalator 􀂟 escalator
 Xerox 􀂟
 Kleenex 􀂟 Not yet legally generic
 Vaseline 􀂟
 Frisbee 􀂟

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