Brand Building

What is Brand building?Involves all the activities that are necessary to nurture a brand into a healthy cash flow stream for the company after launch

Advertising does a lot to help build brands Every ad contributes to make the brand what it is in the minds of the consumer David Ogilvy

A companys brand is the primary source of its competitive advantage and is a very valuable strategic asset David Aaker

Brand EquityWhen a commodity becomes a brand, it is said to have equity. It starts with a name and can go up or down depending on the marketing activity that is done by the marketer. A name becomes a brand when consumers associate it with a set of tangible and intangible benefits that they obtain from the product or service.

How to measure equity?The premium a brand can command in the marketThe difference between the intrinsic and perceived value of the product

Building Brand EquityDistinguish product from others in the market Value propositionAlign what it says about the brand in advertising with what it actually delivers Creating the brand

Power BrandsGenerates enormous profitsExpands future strategic opportunities

What do power brands have that others dont?A distinctive productDelivering brand promisePersonality and presence

PersonalityEmotional bond with the customerGenerates relationships measurably stronger than ordinary brands

PresenceSeem to be present everywhere, enforcing distinctivenessNational/international scaleSuccessful brand extensionsMultiple concept and channels

Brand managers of market-savvy companies needSuperior insight into customer needsAbility to devise product/services that powerfully meet those needsAgility to redefine its offering as those needs changeCreativity to produce exciting and compelling advertising

Tangibles of brand equityShapeColourSizeModelsPriceFeaturesBenefitsGrades

Intangibles of brand equityCompany nameBrand nameSlogan and its underlying associationsPerceived qualityBrand awarenessCustomer baseTrademarks and patentsChannel relationshipsCustomer loyaltyCustomer confidenceCompetitive advantage

Value PropositionBroad positioningSpecific positioningValue positioning

Creating the brandChoosing brand nameDeveloping rich associations and promisesManage customer brand contacts to meet and exceed customer expectations

Porters strategic choicesProduct differentiatorLow cost leaderNicher

Positioning guardsShould not be overpositionedShould not be underpositionedShould not be ambiguousShould not promise irrelevant benefitsPromise should be credible

Choosing a brand nameWhat does it mean?What performance/ expectations/ associations does it evoke?What degree of preference does it create?

Brand names should denoteProduct benefitsProduct qualityBe easy to pronounce/remember/recogniseBe distinctiveNot have poor meanings in other countries or languages

Brand Associationsowned wordSlogansColoursSymbols and logos

Brand AmbassadorsThese are used to create the Brand personality, just like a human being. Therefore in some way the values and personality of the ambassador rubs off into the brand. Therfore the brand and choice of the ambassador must fit.

Brand StatusEsteemFamiliarity

Brand VitalityDifferentiation in consumers mindDifferentiation relevant to consumers need

Brand PitfallsBrand experience must match brand imageCalls for managing every brand contact