Brand Building Chptr1

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    Brand Building

    Introduction to Brand

    Prof. Chaitali Chandarana

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    Brand: Meaning

    People do not buy products, they buy brands. Successful

    organizations have the power of their brands as the

    cornerstone of their success.

    The word brand has its origin in the Norwegian word 'Brand'

    which means 'to burn'. In the ancient times farmers used to

    put bum marks on their livestock to distinguish theirpossessions

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    Definition of Brand

    A name, a term, a symbol or a design or a combination ofthese, that is intended to identify the products or services of

    one business or group of businesses and to differentiate

    them from those of competitors.

    The sum of the expectations that a customer or stakeholderhas when purchasing a product or dealing with an

    organization.

    The brand is a piece of real estate you occupy in a persons

    mind, and the related impressions it leaves behind.

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    Interpreations of a Brand

    According to de Chernatony & Dall'Olmo Riley (1998),

    various interpretations can be drawn from a brand. They are

    as follows

    I.Input perspective

    1. Logo

    2. Legal Instrument

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    3. Shorthand

    4. Risk Reducer

    5. Positioning

    6. Personality

    7.Cluster of Values

    8. Vision

    9. Adding Value

    10. Identity

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    II. Output Prespective:

    Image

    Personality

    III. Time Prespective:

    Evolving entity

    Ever Changing Competetion.

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    More about Branding

    Branding is about how business motivates a consumer to make

    a purchase.

    When does a brand take on something special and become asuper brand or a power brand.

    There are many instances where brand names become so

    recognized that they actually become a generic name for that

    type of product.

    The key to brand enthusiasm is to move beyond your product's

    function & build an emotional connection with consumers.

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    Consumers know brands, express about brands, think about

    brands, feel about brands, com pare brands, choose brands,recommend brands, reject brands, buy brands, and do not buy

    brands through a combination of

    Brand name

    Brand looks

    Brand associations

    Brand personality

    Brand attitude

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    Process of Branding BRAND RELATIONSHIP= BRAND IMAGE + BRAND

    ATTITUDE

    BRAND IMAGE = BRAND ASSOCIATION + BRAND

    PERSONALITY

    BRAND ASSOCIATION = BRAND LOOKS + BRAND

    ATTRIBUTES

    BRAND LOOKS = BRAND SYMBOL + BRAND NAME

    BRAND SYMBOL = BRAND CHARACTER + BRAND LOGO

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    Advantages to the Producer

    Brand loyal customers are a source of repeat sales.

    A brand enables a company to build a reputation for its products

    and creates an image in the public mind.

    It facilitates the introduction to new products in the market. Branding is necessary for the sales promotion and building a

    demand for the product among the customers in a selective

    manner.

    A brand distinguishes and differentiates a product from the

    goods of competing companies. Branding assists in the maintenance of a proper control over the

    price, quality and other features of the product.

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    Limitations for the Producer

    The responsibility for maintaining the quality and the

    standard of the product falls on the producer

    Some products, such as raw materials, do not easily lendthemselves to branding.

    The manufacturer, in order to create an acceptance of the

    brand by the consumers, has to incur heavy expenditure.

    The retailer and the wholesaler may not be willing to stock

    the goods if the brand is not popular.

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    Advantages to the Consumers

    Brands distinguish and differentiate the goods of different manufacturers

    and this fact enables the consumers to choose their products.

    Consumers can finally select the brand they prefer after using different

    branded goods and develop brand loyalty.

    The branded goods assure a certain quality and standard

    Certain brands acquire a great popularity.

    For the customer, shopping becomeseasy and pleasurable,

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    Limitations for the Consumer

    Confusion to choose the appropriate & proper brand.

    Popular branded goods cost more, which is unreasonable.

    Sometimes quality and standard deteriorate and are not

    maintained at the same level.

    Manufacturers try to pass on sub-standard goods by adopting

    high pressure sales and advertising campaigns for their brands.

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    Advantages of Strong

    Brands

    Greater perceptions of product/service performance

    Greater marketing communication effectiveness

    Greater customer retention and loyalty

    More appreciative customer response to price increases anddecreases

    Larger margins

    Less vulnerability to competitive marketing actions

    Less vulnerability to marketing crises

    Greater trade cooperation and support

    Possible licensing/franchising opportunities

    Greater brand extension opportunities

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    Types Of Brands

    Manufacturers Brands: Name is owned and advertised by the

    manufacturer or under their guidelines e.g. Godrej Cold Gold.

    Distributors Or Private Brands: Name is owned and controlled

    by a wholesaler or retailer e.g. Apna Bazar.

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    ADVANTAGES OF PRIVATE

    BRANDING to Retailer

    Reduce producer domination in the marketplace

    Customer sales increase

    Positive image building.

    An opportunity to differentiate and provide variety More freedom in your pricing strategy

    Positive control over stock keeping inventory

    Better bargaining position in a depressed economy

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    Disadvantages of Private Branding to

    Retailer

    Perceived as less powerful in the marketplace as they dont promote

    recognised brands

    Low price equates to low quality

    Lack of financial support from suppliers

    If the product fails, the consumer doesnt forgive you

    A negative backlash on their image

    Financial control concerns

    Lower turnover, resulting in lost total sales per linear metre

    Excessive focus on the private label at the expense of other products

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    Advantages of Private Branding to

    Producer

    It keeps out a competitor from using this opportunity

    They can get into the marketplace at a lower cost

    It is an opportunity for smaller suppliers who dont have the

    promotional capabilities to enter a bigger marketplace

    The supplier can get more shelf space in the store.

    An opportunity to build strategic partnerships with selected

    retailers .

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    Disadvantages to Producer

    The relationship with the retailer could be threatened if the

    product doesnt perform

    Other suppliers may introduce cheaper private labels and

    drive margins downwards

    High inventory costs and low profit margins

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    Advantages to Consumer

    A guarantee of the same quality for a serious price

    differentiation

    More variety within the category.

    A trusted retail name equals trust in the product

    Product provides a need based on a want.

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    Disadvantages to Consumer

    Low quality product.

    Previous customer failures could effect the whole private labelrange in a store e.g. if their cereals arent good, then their jam

    will be the same.

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    Why do Brands Matter?

    Manufacturers

    Simplifies handling or tracing

    Legal protection of unique features

    Signal of quality level to satisfied customers

    Means of endowing products with unique associations Competitive Advantage

    Financial Returns

    Consumers

    Identifies the Product SourceAssignment of responsibility to maker

    Search cost reducer

    Signal of Quality

    Promise, bond, or pact with the make of the product.

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    Thank You