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STRATEGIC BRAND MANAGEMENT

MODULE-1
Introduction to the concepts of Brand Management

MODULE-1
STRATEGIC BRAND MANAGEMENT

Introduction to the concept of Brand Management : Brand Meaning, Definition, Evolution of Brands, Functions of Brand to consumer, Role of BrandAdvantages of Brand, Product Vs Brand. Branding- Meaning, Creation of Brands through goods, services, people, Organization, Retail sto res, places, online, entertainment, ideas, challen ges to Brand builders. Brand Management-Meaning & Definition. Strategic Brand Management Process-Meaning, Steps in Brand Management Process. Strong Indian Brands (Case study)

STRATEGIC BRAND MANAGEMENT

STRATEGIC BRAND MANAGEMENT

STRATEGIC BRAND MANAGEMENT

Before there were sneakers.

Nike

STRATEGIC BRAND MANAGEMENT

STRATEGIC BRAND MANAGEMENT

STRATEGIC BRAND MANAGEMENT

STRATEGIC BRAND MANAGEMENT

STRATEGIC BRAND MANAGEMENT

STRATEGIC BRAND MANAGEMENT

STRATEGIC BRAND MANAGEMENT

STRATEGIC BRAND MANAGEMENT

STRATEGIC BRAND MANAGEMENT

STRATEGIC BRAND MANAGEMENT

STRATEGIC BRAND MANAGEMENT

STRATEGIC BRAND MANAGEMENT

STRATEGIC BRAND MANAGEMENT

STRATEGIC BRAND MANAGEMENT

STRATEGIC BRAND MANAGEMENT

STRATEGIC BRAND MANAGEMENT

STRATEGIC BRAND MANAGEMENT

STRATEGIC BRAND MANAGEMENT

STRATEGIC BRAND MANAGEMENT

STRATEGIC BRAND MANAGEMENT

What is a Brand?
A brand is a name, term, sign, symbol, o r design, or a combination of them, intended to identify the goods and servi ces of one seller or group of sellers & to d ifferentiate them from those of competitio n (AMA) It is able to choose a name, logo, symbol, package design, or other characteristics t hat identifies a product & distinguish it fro m others. A product may die but the brand will susta in.
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STRATEGIC BRAND MANAGEMENT

STRATEGIC BRAND MANAGEMENT

Why do we need brands?


1. Technology and performance are not a di fferentiating platform. 2. The life cycles of products are getting sh orter. 3. The new consumer is smarter and more aware about the commitment of brands. 4. Employees need to feel proud of their wo rkplace.
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Evolution of Brands
STRATEGIC BRAND MANAGEMENT

Brands start off as products made out of certain ingredi ents. over the period of time, brands are built through m arketing activities & communications. In this every retailer then started developing symbols to r epresents his specialty. Brands thus became differentiating device & remains so even today. Branding makes it easier for consumers to identify produ cts & services. Brands helps to simplify a consumers shopping. Brands have emotive associations. 1800 P&G and other consumer products companies beg an branding their products. 1950 brand personality was developed. 1980 brand equity developed as a concept. 1990 branding emerged.

What is a Brand?

STRATEGIC BRAND MANAGEMENT

A brand is a product, but one that adds other dimensions that differentiate it in some way

from other products designed to satisfy the same need.

differentiate
from their competitor

identify
their goods & services

Brand

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STRATEGIC BRAND MANAGEMENT

What is a Brand?

Name

Identifies product/service of seller and differentiates from competitors

Design

A Brand is More Than a Product


STRATEGIC BRAND MANAGEMENT

Brand

Organizational asso ciations

Symbols Brand Personality

Country of o rigin

Scope Attributes Uses Quality/value Functional benefits

Product
User Imagery

Brand/customer relati onships


Self-expressive benefits

Emotional benefits

What are the Strongest Brands?


The Most well known, Highly regarded

STRATEGIC BRAND MANAGEMENT

Key Success Factor : Evolve over the years, Make a number of changes Vision of the Mass Market

Five Factors as the key

to
enduring Brand Leadership

Asset Leverage

Five Factors

Managerial Persistence

Relentless Innovation
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Financial Commitment

Roles of Brands for Manufacturers The Role of Brands for C Consumers greater loyalty. Lower sensitivity of the consume onsumers r towards 1. Represents product c competitor's activity. Ability to reduce damages in tim ategory & class. es of crisis. 2. Represents brands re Higher margins. sponsibility Low sensitivity of consumers to price increases. 3. Risk reducer. Higher cooperation with marketi 4. Reduces cost of sear ng channel. ch Greater effectiveness of marketi 5. Represents status and ng communication. image. Higher potential for brand extens 6. Sign of quality. ion. Provides competitive advantage.

STRATEGIC BRAND MANAGEMENT

Why do Brands matter?


STRATEGIC BRAND MANAGEMENT
Customers Firms

Identification of source of product Assignment of responsibility to product maker Risk reducer Search cost reducer Promise, bond, or pact with maker of product Symbolic device Symbol of quality

Means of identification to simplify handling or tracing Means of legally protecting unique features Signal of quality level to satisfied customers Sources of competitive advantage Source of financial returns

STRATEGIC BRAND MANAGEMENT

FUNCTIONS Increases the Brand awareness. Brands reduces risks. It helps to provide specific information & assures the specific quality. Brands provides symbolic consumption.

WHAT IS BRANDING?
STRATEGIC BRAND MANAGEMENT

Its the process by which a marketer tries to build a long term relationship with the customer s It can also be viewed as a tool to position a pro duct or service. It influences the customers choice and helps en sure repeat purchase. Branding is a conscious customer satisfaction o rientation process.

The Key to Branding


STRATEGIC BRAND MANAGEMENT

For branding strategies to be successful, consumers must be convinced that there are meaningful differe nces among brands in the product or service catego ry. Consumer must not think that all brands in the cate gory are the same. PERCEPTION = VALUE

STRATEGIC BRAND MANAGEMENT

Managing brands As companies accept that brands are posit ive, though intangible assets, they must pl an brand management teams for obtaining the optimum results, these teams should b e formed on cross-functional basis with ke y representatives form departments that af fect the brand equity and brand performan ce, there should be brand management di rectors committee to oversee the brand tea m's operation.

STRATEGIC BRAND MANAGEMENT

Brands can become effective tools of differen tiating products as they keep creating goodwi ll & become companys assets, a good brand s price fixation becomes easier as higher pri ce and the price of competitive products can be changed.
Brands have given a major fillip (boost) to cu stomer buying habits, customers are known t o love some brands and are ready to swear by them. These customer take on themselves the role of brand advertisers or even brand a mbassadors.

The Issue of Branding


STRATEGIC BRAND MANAGEMENT

Branding simplifies the complexity of the offering via brand elements such as:
Brand names Logos Symbols Package designs

Branding helps in the thought processes of consumer s when they are considering purchasing or pur chasing an offering.

STRATEGIC BRAND MANAGEMENT

STRATEGIC RELEVANCE OF BRANDING

Though products may change the spirit of the brand remains the sam e.

STRATEGIC RELEVANCE OF BRANDING


STRATEGIC BRAND MANAGEMENT

1. A brand aims to segment the market. 2. A brand has an enduring value. 3. A brand tries to protect your innovation . 4. A product may die but the brand will su stain. 5. A brand is a living memory.

STRATEGIC BRAND MANAGEMENT

CONSTITUENTS OF A BRAND

1. 2. 3. 4. 5. 6.

Attributes Benefits Values Culture Personality User

Can Anything be Branded?


STRATEGIC BRAND MANAGEMENT

Physical Goods

Services

Retailer & Distributor

Online Product & Services

People & Organization

Sports, Arts & Entertainment

Geographic Locations

Ideas & Causes

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Creation of brands through goods


STRATEGIC BRAND MANAGEMENT

Physical goods are what are traditionally associated with brands & include many of the best known & highly regarded co nsumer products. Ex: Coca Cola, Mercedes Benz, Nescaf e, Sony,,,,

Creation of brands through Services


STRATEGIC BRAND MANAGEMENT

Although strong service brands like Americ an Express, British Airways, Hilton Hotels, Merrill Lynch, Federal express have existe d for years but pervasiveness of service br anding & its sophistication have accelerat ed in the past decade. Branding a service can also be an effectiv e way to signal to consumers that the firm has designed a particular service offering that is special & deserving of its name.

STRATEGIC BRAND MANAGEMENT

Creation of brands through People & organizations It is straightforward when the product cate gory is people & organizations. These often have well defined images that are easily understood & liked by others. Thats particularly true for public figures s uch as politicians, entertainers & professio nal athletes. Organizations often take on meanings thro ugh their programs, activities & products.

STRATEGIC BRAND MANAGEMENT

Creation of brands through Retailers & Distributors Brands provides number of functions to R & D. Brands can generate consumer interest, p atronage & loyalty in a store as consumer learn to expect certain brands & products. Retailers can introduce their own brands b y using their store name, creating new na mes or some combination of the two. Ex: Many Europe distributors are using the ir own brands.

Creation of brands through online


STRATEGIC BRAND MANAGEMENT

The number of people in US with access t o the internet from their homes. It is critical to create unique aspects of th e brand on some dimension important to c onsumers, such as convenience, price, va riety & so forth. Online brands also learned the importance of off line activities to draw customers to web sites & many of the most successful business ventures came about when off li ne brands like pampers diapers, British air

Creation of brands through Sports, Arts & Entertainment


STRATEGIC BRAND MANAGEMENT

A special case of marketing people & or ganization as brands exists in the sports , arts, & entertainment industries. Sports marketing has become highly so phisticated in recent years, employing tr aditional package goods techniques.

Creation of brands through ideas & Causes


STRATEGIC BRAND MANAGEMENT

Numerous ideas & causes have been bran ded, especially by non profit organizations . By making ideas & causes more visible & concrete, branding can provide much valu e.

Branding Challenges and Opportunities?

STRATEGIC BRAND MANAGEMENT

Media Fragmentation

Increased Competition

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Strategic Brand Management


STRATEGIC BRAND MANAGEMENT

Strategic brand management involves the design and implementation of marketing programs and ac tivities to build, measure, and manage brand equit y. The strategic brand management process is defin ed as involving four main steps: 1) Identifying and establishing brand positioning and values.. 2) Planning and implementing brand marketing progr ams. 3) Measuring and interpreting brand performance. 4) Growing and sustaining brand equity.

Strategic Brand Management Process

STRATEGIC BRAND MANAGEMENT

Steps

Key Concept
Mental maps Competitive frame of reference Points of parity and points of differences Core brand values Brand mantra

Identify and Establish Brand Positioning and Values Plan and Implement

Brand Marketing Program


Measure and Interpret Brand Performance Growth and Sustain Brand Equity

Mixing and matching of brand elements Integrating brand marketing activities Leverage of secondary associations Brand value chain Brand audits Brand tracking Brand equity management system Brand-product matrix Brand portfolios and hierarchies Brand expansion strategies Brand reinforcement and revitalization

Identifying & establishing brand positioning 1. The SBM Process starts with a clear understanding of w hat the brand is to represent and how it should be posi tioned with respect to competitors, brands positioning c an be defined as the act of designing the compa nys offer and image so that it occupies a distinct and v alued place in the target customers mind such tha t the potential benefit to the firm is maximized, competiti ve brand positioning is all about creating brand superiori ty in the minds of consumers. 2. Positioning also often specifies the appropriate core bra nd associations and brand mantra. A Mental Map is a vi sual depiction of the different types of associations lin ked to the brand in the minds of consumer. 3. Core brand associations are the subset of associations t hat best characterize a brand. To further focus what a br and represents it is also often useful to define brand m antra, also known as brand essence or core brand pro mise.. A brand mantra is a short three-to five-word expr ession of the most important aspect of a brand and its c

STRATEGIC BRAND MANAGEMENT

Planning and Implementing Brand Marketing Programs Building brand equity requires creating a brand that consumers are s ufficiently aware of and with which they have strong, favorable, and unique brand associations 1. Choosing brand elements: the most common brand elements are brand names, logos, symbols, characters, packaging and slogan s, a number of options and criteria are relevant for choosing them to enhance brand awareness or facilitate the formation of strong favorable and unique brand associations 2. Integrating the brand into marketing activities and the supporting marketing program: although the judicious choice of brand eleme nts can make some contribution to building brand equity, the bigg est contribution comes form marketing activities related to the bra nd , marketing programs can create strong, favorable and unique brand association in a variety of ways. 3. Leveraging secondary association : the third and final way to buil d brand equity is to leverage secondary associations, brand as sociation may themselves be linked to other entities that hve their own association, creating these secondary association

STRATEGIC BRAND MANAGEMENT

Measuring and interpreting brand performance: 1. The task of determining or evaluating a brand s positioning often benefits form a brand audi t, a brand audit is a comprehensive examinatio n of a brand to assess its health, uncover its s ources of equity and suggest ways to improve & leverage that equity , a brand audit requ ires understanding sources of brand equity form the perspective of both the firm and the consumer. 2. A brand value chain is a means to trace the val ue creation process for brands, to better unde rstand the financial impact of brand marketing expenditures and investment.

STRATEGIC BRAND MANAGEMENT

Growing and sustaining brand equity: Defining the branding strategy: the firms brandi ng strategy provides general guidelines about w hich brand elements to apply across its produc t, two main tools in defining the corporate bran ding strategy are the brand- product matrix and the brand hierarchy. The brand-product matrix is a graphical represe ntation of all the brands and products sold by th e firm The brand hierarchy displays the number and na ture of common and distinctive brand compo nent across the firms products by capturing the potential branding relationship among the differe nt products sold by the firm. It involves: Defining brand strategy, Managing br and equity over time, Managing BE over geogra phical boundaries, cultures & market segments.

STRATEGIC BRAND MANAGEMENT

STRATEGIC BRAND MANAGEMENT

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