Difference Between Product and Brand

1.Product is made in
a factory 2. A product can be copied. 3. A product can be quickly outdated.

1. A brand is bought
by the customer . 2. A brand is unique. 3. A successful brand is timeless

BRAND EQUITY
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. For assets or liabilities to underlie brand equity they must be linked to the name and/or symbol of the brand.

BRAND EQUITY
The assets and liabilities on which brand equity is

based can be grouped into 5 categories 1) Brand Loyalty 2) Name awareness 3) Perceived quality 4)Brand associations in addition to perceived quality 5)other proprietary assets : patents, trademarks,channel relationship etc.

Brand Loyalty

Reduces marketing costs Trade Leverage Attracting new consumers 1) Creates Awareness 2) Reassurance Time to respond to competitive threats Anchor to which other associations can be attached Familiarity-Liking Signal of Substance/Commitment Brand to be considered

Provides value to customer by enhancing customers: Interpretation/ Processing of information Confidence in purchase decision Use satisfaction

Brand Awareness

Provides value to firm by enhancing : Efficiency and effectiveness of marketing programs Brand loyalty Prices/Margins Brand extensions Trade Leverage Competitive advantage

Brand equity

Perceived quality

Reason to buy Differentiate/Position Price Channel Member interest Extensions

Brand associations

Help process/retrieve information Differentiate /Position Reason-to buy Create positive attitude /feelings Extensions

Other proprietary Brand assets

Competitive advantage

BRAND EQUITY
Name Awareness Brand Loyalty Brand Equity Provides value to customer by enhancing customers Interpretation /Processing of information. Confidence in the purchase decision. Use satisfaction/delight Perceived quality Brand Associations Other proprietary brand assets

Provides value to firm by enhancing:Efficiency and effectiveness of marketing programs Prices/Margins Brand Extensions Trade Leverage Competitive advantage

P& G- Believers in Brand Management

In 1879 , Harley Procter named his soap IVORY The soap was promoted as 99 44/100 % pure and that it floated. The floatation property was created by production mistake which fed

air into the soap mixture. Ivory was a remarkable product in a time when most soaps were yellow or brown , irrated skin. Also during those times the floatation value had practical value for those who were frustrated trying to find their soap in water. Well positioned soap----> pure, mild and floated. The claims of purity and mildness were supported by white color, name Ivory, the twin slogans and association with babies. In 1941 , Lever Brothers launched Swan to challenge Ivory, but as there was no product difference , the brand failed.

P& GS Product Portfolio - launched from 1940-1980

Tide- Detergent Prell - Shampoo Joy - dishwashing detergent Crest - Toothpaste Secret - cream deo Jif - peanut spread Ivory - Liquid soap Pampers - disposable diapers Folgers - coffee Scope - Mouthwash Bounty - paper towels Pringles- potato chips Bounce - fabric softeners Duncan Hines - cookies

 A striking aspect of P& G has been its willingness to

develop competing brands (multi brand concept) in order to serve new segments , even if new brands threaten existing brands. P&G has 10 brands in laundry detergent category which reach a variety of segment s and has given P&G a 40%+ market share . 1) Ivory Snow : ninety-nine and forty-four onehundredths percent pure,, the mild gentle soap for diapers and baby clothes 2) Tide--- For extra-tough family laundry jobs-Tides in , dirts out

 Cheer -works in cold, warm or hot water- All temperature Cheer Gain- detergent with fragrance - Bursting with freshness. Bold 3 - includes fabric softener - Cleans , softens and controls static Dash- concentrated power, less suds to avoid clogging washing

machines Dreft- with Borax, natures natural sweetener for babys clothes Oxydol:- contains bleach-for sparkling whites -with color safe bleach. Era- concentrated liquid detergent-with proteins to clean stains Solo- heavy duty with fabric softener

Brand Loyalty
Brand Loyalty pyramid
Committed buyer

Likes the brand, considers brand as a friend

Satisfied buyer with switching costs Habitual buyer- no reason to change Switchers /price sensitive- indifferent- no brand loyalty

Measuring Brand Loyalty

Behavior Measures:

Repurchase rates: What % of Maruti Zen owners purchase Zen on their next purchase % of Purchases: of the last five purchases made by a customer, what % went to each brand purchased? Number of Brands Purchased: What % of coffee buyers bought only a single brand?, two brands?
Switching costs: If it is expensive or risky for a firm or consumer to

change suppliers, then the brand loyalty is on the higher side. E.g : Investment in computer system or software like SAP

Strategic value of Brand Loyalty

Reduced Marketing Costs: It is much less costly to retain

customers then to attract new one ( COST RATIO IS 1:4) Trade leverage: Strong pull (brand loyalty) from consumers will ensure preferred shelf space because stores know that customers will have such brands on their shopping list. Attracting new customers: Time to respond to competitive threats:If a competitor develops a superior product , a loyal following will allow the firm time needed for the product improvements to be matched and neutralized.

Creating & Maintaining Brand Loyalty

Treat the customer Right
Stay close to customer Measure/Manage Customer Satisfaction Create switching cost

Provide extras

Creating & Maintaining Brand Loyalty

Measure / Manage Customer Satisfaction :

Regular

surveys of customer satisfaction are useful in understanding how customers feel and it also helps in adjusting product and services. Dominos Pizza conducts weekly phone surveys of customers measuring dimensions like response time, lumpiness of dough, freshness of pepperoni and attitude of delivery people. A bonus pool is distributed based upon these measures. Create Switching costs: Reward loyalty directly. For e.g The airlines frequent flyers program .

Brand Awareness
Ability of a potential buyer to recognize or recall that a

brand is a member of a certain product category.

Top of Mind

Brand recall Brand Recognition Unaware of brand The awareness Pyramid

 Brand awareness creates value in the following\g ways :

1) Anchor to which other associations can be attached : for e.g McDonalds:Golden arches, clean/efficient, kids , fun etc. 2) Familiarity/Liking: recognition provides the brand with familiarity and people like the familiar. 3)Substance /commitment: The firm has been in business for a long time. The firm is widely distributed and the brand is successful. 4) Brands to consider ----- it enters the evoked or consideration set.

How to achieve Awareness

Be different , Memorable:
Involve a slogan or jingle: e.g Lifebuoy hai jahan ,

tandorosti hai wahan. Symbol exposure: colonel sanders --KFC, golden archesMcdonalds---> symbol should closely associate with the brand. Publicity--- advertisement. Event Sponsorship --- Femina Miss India, Manikchand Filmfare awards.
Consider brand Extensions : one way to gain brand recall

is to put the name on other products.

Recognition v/s Recall- The Graveyard Model

High

Graveyard Recognition

Brand

Niche Brands

Low

Low

Recall

High

BRAND RECOGNITION
Brand Recognition: Familiarity and Liking : Recognition reflects familiarity gained from past exposure . Recognition doesn't necessarily involve remembering where the

brand was encountered before, why it differs from other brands , or even what the brands product class is. It is simply remembering that there was a past exposure to the brand. When consumers see a brand and remember that they have seen it before (perhaps even several times) , they realize that the company is spending money to support the brand. Since it is generally believed that companies will not spend money on bad products , consumers take their recognition as a signal that the brand is good.

Brand Recall
A brand (for e.g. HDFC Bank) is said to have recall if it

comes to consumers minds when its product class (for e.g. , banking companies ) is mentioned. Whether or not a customer recalls your brand can be the deciding factor in getting on a shopping list or receiving a chance to bid on a contract. The graveyard model was developed by Young and Rubicam Europe under the guidance of Jim Williams. In this model , brands in a product class are plotted on a recognition v/s recall graph.

The Graveyard Model

For e.g , the recall and recognition of each of the brands in

the automobile category could be measured and these measurements could be used to position each brand on the graph. One finding consistent across dozens of product classes is that brands tend to follow the curved line shown in the figure. There are two exceptions , each of which reveals the importance of recall. One exception is healthy niche brands , which fall below the line because they are not known to a substantial group of consumers , and therefore have relatively low overall recognition.

The Graveyard Model

But because they do have high recall among their

respective loyal customer groups , their low recognition is not necessarily an indication of poor performance. And healthy niche players sometimes have the potential to expand recognition and thus the scope of their customer base. The second exception is the graveyard , an area in the upper left hand corner populated by brands with high recognition but low recall. Being in the graveyard can be deadly. Customers know about the brand , but it will not come to mind when considering a purchase .

The Graveyard Model

One point of the graveyard model is that high recognition

is not necessarily the mark of a strong brand it is associated with weak ones as well. Movement towards the graveyard is associated with sliding sales and market share. If however , the brand is moving away from the graveyard , sales and market share can be expected to increase. Thus the graveyard model provides evidence that recall is as important as recognition.

Perceived Quality
Defn : customers perception of the overall

quality or superiority of a product or service with respect to its intended purpose, relative to alternatives.

Perceived Quality
Quality dimensions :

1) Performance : How well does a washing machine wash clothes---> primary operating characteristics of service 2) Features: secondary elements like on/off timer in washing machine etc. 3) Conformance with specifications: --- absence of defects----trouble free . 4) Reliability--- will the vacuum cleaner work the same way each time it is used. 5) Durability: How long will the washing machine last 6) Serviceability: is the service system efficient , competent and convenient. 7) Fit and finish:- does the product look and feel like a quality product.

Perceived Quality
Research has shown that in many product classes a key

dimension which is visible can be pivotable in affecting perceptions. 1) Stereo Speakers: larger size means better sound 2) Tomato ketchup-- thickness means quality. 3) Supermarkets--- fresh products means overall quality. 4) cars: a solid door-closure sound implies good workmanship and a solid safe body. 5) lawn mover-- noise signals quality

 6) Cleaners: A scent like lemon signals cleaning

power 7) Medicine : for adults , bitter means better. In addition to information about a brands product features (intrinsic cues) there are a host of other brand associations- such as the amount of advertising used, the brand name or the price (extrinsic cues) that can influence perceived quality.

 Extrinsic cues perceived quality 1) Advertising: The amount of advertising

supporting a brand can signal that the firm is backing the brand. This logically implies that it must be a superior product. 2) Price as a quality cue: Chivas Regal was a struggling brand until it decided to raise its price higher than competitors.Its sales increased thereafter. Product itself was not changed.

 The relevance of price as a quality cue will depend on

other cues available, the individual himself and the product. When intrinsic cues are available , people will be less likely to rely on price. The use of price as a quality cue will differ across product classes Product classes which are difficult to evaluate are more likely to have price as a quality cue. As per research, price tends to signal quality in wine, perfume and durables.

Brand Associations
Apple produced a good computer , the

Apple 2, but created a great distinction. It made using a computer a friendly , unintimidating process. Everything at Apple, from its logo to its down-to earth founders , underscores its uniqueness Tom Peters

 A brand association is anything linked in

memory to a brand. Thus McDonalds could be linked to - A character such as Ronald McDonald - A Consumer segment such as kids - A feeling such as having fun - A symbol such as the Golden arches

 There are 11 types of associations. They are

- Product attributes - Intangibles

- Customer benefits
- Relative Price

- Use/ Application
- User/ Customer

- Celebrity/ Person
- Lifestyle / Personality - Product class

- Competitors
- Country/ Geographic area

Product Attributes
Probably the most used positioning strategy

is to associate an object with a product attribute or characteristic. E.g - Crest- strong association with cavity control - Volvo durability and safety - BMW talks of performance with their tag line , The ultimate driving machine

Positioning by Product attributes and benefits

: Colgate --- white strong teeth Close-Up is positioned on fresh breath Promise--- Gum care. Car ads show technical features like MPFI, Power steering, Delta V technology etc. Dettol : hygiene

Intangibles
An intangible factor is a general attribute ,

such as perceived quality, technological leadership etc. Customers perceive companies like Sony, IBM as technology leaders without knowing the specs of specific models or exactly in what way they are superior

Customer Benefits
As most product attributes provide customer

benefits , there usually is a one-to one correspondence between the two. Cavity control is both a product characteristic of Crest and a key customer benefit. BMW is good handling (a product characteristic ) providing the customer driving satisfaction (a customer benefit) Benefits are normally two rational benefit and psychological benefit.

 A rational benefit is closely linked to a

product attribute and would be part of a rational decision process A psychological benefit , often extremely consequential in the attitude-formation process, relates to what feelings are engendered when buying and /or using the brand.

Product
Computer computer Shampoo Shampoo Fairness cream

Feature
Bubble Memory Touch screen entry Built-in conditioner Natural protein Neem extracts

Rational Benefit
Cant lose your work Easy to use Full, thick hair Safe to use every day Better skin shade

Psychological Benefit
Job safety/ security Feeling professional Confidence about looks Exciting/sexy Confidence about looks

Country or Geographic area

A country can be a strong symbol, as it has close

connections with products, materials and capabilities E.g Germany- beer and upscale automobiles Italy-shoes and leather goods France- fashion and perfume These associations can be exploited by associating a brand with a country.

Use ,application, Occasion and time :

The idea behind this positioning strategy is to find an

occasion or time of use Thus you associate the brand with a use or application Kelloggs --- breakfast Odomos-- USED AT NIGHT Good Knight ---- to fight mosquitos at night Arm and hammer baking soda--- extended its fresh/clean postiioning as an odour destroying agent in refrigerators. Campbell souplunch time product

Price Quality:
Is a powerful approach particularly in a

developing economy like India.

In early 1970s , Nirma positioned itself as good

quality product that lathered well, cleaned well and the price was nearly 50% lower then Surf. Timex use price quality positioning and succeeded in USA. Zenith used Price quality positioning for its Home PCs----- value for money

Positioning by Price Quality:

Another dimension of P-Q positioning is that the

product is positioned on high quality and price is kept high to communicate this high quality. For e.g In certain product categories it is not possible to assess quality Perfumes. Premium products positioned at the high end of the market use this positioning e.gRolex, Mercedes, Rolls- Royce, Cartier etc.

Product User/customer
The brand manager can determine a target

audience for whom the product will be positioned e.g --- Farex, Cerelac--- is for small Kids(0-12 Months). Cosmetics industry A) Noxells cover girl- product for wholesome, healthy and blonde women B) Revlon: associated with more sophisticated women

Positioning By competitor
In most positioning strategies, the frame of reference is one

or more competitors. e.gAvis-Were number two, we try harder campaign

Sabroso a coffee liqueur positioned itself against the well

established Kahlua with respect to quality and also with respect to the type of liqueur . Its print ad should two bottles side by side and used the headlines Two great imported coffee liqueurs. One with a great price. Subaru

Positioning by cultural symbols

Marlboro cigarettes chose the American

cowboy as the central focus to help differentiate its brand from competitors and developed the Marlboro man. Pillsburys doughboy Air Indias Maharaja

Positioning by Product class

Some products need to make critical positioning

decisions that involve product-class associations. For e.g--- Maxim freeze dried coffee , the first one in the market needed to position itself with respect to regular and instant coffee. Dove positioned itself apart form the soap category as a cleansing cream product , for women with dry skin.

Positioning by Product class

The soft drink 7- Up was for long time positioned as a

beverage that had a fresh clean taste that was thirst quenching. Research uncovered the fact that most people did not regard 7-Up as a soft drink but rather as a mixer beverage. The brand tended to attract only light soft-drink users. The positioning strategy was then developed to position 7Up as a mainline soft drink as a logical alternative to the colas but with a better taste. The successful uncola campaign was the result.

Celebrity/ Person
A celebrity often has strong associations. Linking a celebrity with a brand can transfer those

associations to the brand. E.g 1) Rahul Dravid and Castrol: Dravid is dependable. So even Castrol is dependable lubricant. 2) V. Anand and NIIT : Anand plays chess which requires brains and NIIT is into software which also requires brains

 In the mid eighties , Nike faced a challenge from

Reebok . Reebok had exploited the aerobics craze to take over first place in the athletic shoe market. Nike responded with Air Jordans, basketball shoes using air-cushioning technology featuring patented pressurized gas pockets in the soles (Pump it up) The shoe was a smash success , with first year sales of over $100 mn. Its key was the endorsement by Michael Jordan, the basketball legend.

 A person attached to the brand need not be a

celebrity. The Maytag repair man and the Marlboro man have strong identities and characteristics that have become important brand associations. The person need not even be real. It can be a cartoon symbol such as Gattu of Asian Paints and utterly butterly girl of Amul.

Amitabh and brands

Amitabh extrovert, legendary, aggressive,

larger than life, can do comic characters etc. The brand he endorses or used to endorse are as follows: What do you think is there a fit between the brand and amitabh in all cases

Category Paints Cola Chocolates

Brand Goodlass Nerolac Pepsi Cadbury

Detergent
Battery Telecom/energy Digestion Oil Television Cars Suitings Pens Pain Relief

Rin
Eveready Reliance Dabur - Hajmola Navratan BPL Maruti-Versa Reid and Taylor Parker Emami

 25-1.wmv
kmhj_pappu.wmv

Lifestyles/personality
If your car, your colour TV or your washing machine were suddenly to

become a human being, what kind of person would you expect it to be?
Every person possesses a personality and a lifestyle that is rich,

complex and vivid and distinctive as well. Similarly brands can be thought of as having personality/lifestyle by consumers. E.g Research by Pepsi involving 17 groups of loyal drinkers of either Pepsi or Coke, provided , insights into the personalities of the two brands. Coke projected an image of family, and a solid rural America Pepsi was considered exciting, innovative, and fast growing.

Other proprietary Brand Assets

This includes patents, trademarks and channel relationships Brand assets will be most valuable if they inhibit or prevent

competitors from eroding a customer base and loyalty.

A trademark will protect brand equity from competitors who might

want to confuse customers by using a similar name, symbol or package.

A patent can prevent direct competition

A distribution channel can be controlled by a brand because of a

history of brand preference.

Managing Brand Systems

Brand Hierarchies
Corporate Brand: G.M,Maruti Range Brand : Chevrolet, Zen Product Line Brand: Chevrolet Lumina, Zen Classic

Subbrand: Chevrolet Lumina Sports Coupe, Zen Classic

LXI, Surf Excel, Surf Ultra

Understanding Brand Roles

Driver
Endorser Strategic Brands Subbrand Roles

branded Benefits
Silver Bullets

 Driver roles: A driver brand is a brand that drives the

purchase decision: its identity represents what the customer primarily expects to receive from the purchase. For e.g Gillette Sensor razor, customers are primarily purchasing the technology and performance represented by the Sensor name. As a result, Sensor is the driver brand and its name and symbol need to have a strong identity and clear visibility on the package and in the mind of the user. Similarly for Maruti Zen, Zen is the driver brand as the consumer is buying Zen and not Maruti.

 The endorser Role : In the endorser role, a brand provides

support and credibility to the driver brands claims. Because the corporate brand usually represents an organization with people, culture, values and programs, it is well suited to support a driver brand and thus it often plays the endorser role. For e.g for LG Golden Eye, LG is the endorser role. Similarly in case of Gillette Sensor , Gillette is an endorser for sensor razors.

 Subbrand Roles
A subbrand is a brand that distinguishes a part of the

product line within the brand system. For e.g Buick (corporate Brand is G.M) uses the subbrand Roadmaster to distinguish a specific model from another model such as Riviera. Both are Buicks and both enjoy the umbrella of the Buick name but each is a distinct product. Similarly Surf has the following subbrands over the years-Surf excel, Surf Ultra, Surf Super excel, Surf Excel matic. Also Zen has the following subbrands Zen Nova, Zen Classic

Branding Benefits
Branding a feature :Oral B brushes:
Two key features of it unique design were themselves

branded - the power tip bristles at the end of the brush and Action cup shape that conformed to teeth and gum contour. They also have branded the indicator bristles which changes colour when brushes become worn.
Godrej PUF: a very important feature was branded Bajaj Discover DTSI: branding a component: many computers give the ad and also say intel inside Similarly Maruti cars say with MRF tyres

 Branding a service program :

A company can brand its services to build brand strength e.g Hyatt in USA has done the following Hyatt Business Plan- Provides work space, phone, fax

machine in the hotel room, also access to copiers, printers etc Touch and Go : Automatic check in via an 800 toll free number Hyatt Gold passport :Allows customers to earn points redeemable for travel awards.

Silver bullets
A silver bullet is a subbrand or branded benefit that is

employed as a vehicle for changing or supporting the brand image of a parent brand. The Sony walkman supports the innovative miniaturization identity that is central to SONY Taurus brand of Ford showed that Ford could design and build innovative cars Pulsar changed the image of Bajaj. Bazooka the subbrand changed the image of Videocon Similarly Motorazr V3 , changed the image of Motorola

Branded Benefits as Silver bullets

A branded benefit (feature, component, service) can also

playa silver-bullet role by supporting the image of the brand to which it is attached. The Action cup and Indicator bristles play a silver bullet role for Oral-B toothbrushes and the Oral- B brand by reinforcing the technological edge that Oral-B products provide.

Leveraging the brand

Line extensions ( in existing product class)
Brand Extensions : On an adhoc basis or creating a range

brand. co-branding Stretching the brand vertically in existing product class : a) stretching down b) stretching up

 One recipe for strategic success is to create and leverage

assets. With its awareness, perceived quality, associations and customer loyalty, a brand is usually the most powerful asset that a firm owns. Thus a brand can be leveraged to create larger and stronger business entities.

 Line extension :why ?

A) expanding user base b) providing variety c) energizing the brand

d) blocking or inhibiting competition

e.g Amul Kool with 6 variants Lays with 6 variants

Stretching the brand vertically in existing product class : a) stretching down b) stretching up
Launch products in all price points with same name e.g

Sony, Philips Use subbrands like Citibank - Gold, Silver, Cambridge and Cambridge gold Videocon in colour TV launched subbrands like Bazooka,for top end, Turbo tough for middle class and Freedom series for the lower class Subbrands have the potential to permit entry in an emerginh low end amrklet without threatening the aprent brands equity in the higher ranges of the market.

 There are two clear problems

a) Risk of cannibalisation as buyers may shift to lower

version b) the risk that extending the brand down will taint the parent brands name. one option here is to change the brand name / use a different name When Honda wanted to launch a premium car , the name given was Acura.

 A subbrand that is upscale will often employ a descriptor

such as Special Edition, Premium, Gold

brand extension: Another way to leverage a brand with

extensions is to use it to enter and create advantage in another product category Amul taking the name Amul to pizzas. Creating range brands: For their chips and food division , Pepsi has a seperate name Lays Similarly in USA , United technologies has a range brand Carrier for A/Cs and Otis for lifts.

 Co-branding
a) ingredient brands : One form of co-branding is to

become a branded ingredient in another brand. For example MRF tyres in Maruti Zen cars. Another example is Intel b)Composite brands: Another form of co-branding is having a composite brands- the bundling of two brands to provide an enhanced consumer benefit or reduced cost e.g Big bazaar ICICI Bank credit card or HSBC Indian Oil credit card.