BRAND MANAGEMENT

DEFINITION

A BRAND is a name, term, sign, symbol or design

or a combination of them, intended to identify the

goods or services of a seller or group of sellers and

to differentiate them from those of competitors.

These differences may be functional, rational and

tangible i.e. related to the product performance, or

These differences can be symbolic, emotional and

intangible i.e. related to what the brand represents.

ROLE OF BRANDS

1. To identify the source or maker ( for assigning the responsibility for the performance)

2. To simplify the decision making and to reduce the risk.

3. Signal of Quality

4. Competitive Entry Barrier

5. To facilitate product handling, tracing, valuation, promotion etc.

6. Legal protection ( IPR)

Trademark – Logo, Brand Name

Copyright – Text, Taglines or Packaging

Patents – Innovations , Designs, Ideas

SCOPE OF BRANDING

Branding is Empowering products and services with the

power of a Brand.

Branding creates mental structures that help customers

organize their knowledge about products or services in a

way that clarifies their decision making and in the

process provides value to the maker.

For branding strategies to be successful and brand

value to be created, consumers must be convinced

there are meaningful differences among brands.

Brands can create competitive advantage through

product related attributes (benefits) or through non

product related means (image).

APPLICATIONS OF BRANDING

1. Physical goods ( Lux , Gillette)

2. Services ( Jet Airways, ICICI Bank)

3. Stores ( Big Bazaar, Wal -Mart )

4. Persons ( Amir Khan, Anna Hazare )

5. Places ( Kerala, Las Vegas )

6. Organizations ( UNICEF, NATO )

7. Ideas ( Family Planning, Liquor free Villages )

BRAND EQUITY

Brand Equity is the added value endowed on a

product or a service.

It is reflected in a way the consumers think , feel

and act with respect to the Brand.

It also enhances the price, market share and the

profitability of the Brand in the long term.

It augments the perceived stakeholder value, thus

creating a goodwill for the firm.

BRAND ASSET VALUATION

Brand Strength is determined by the extent of

differentiation ( degree of difference ), relevance (

breadth of a brand’s appeal ) and energy ( sense of

momentum ).

Brand Stature is determined by the esteem (

degree of respect for the brand ) and Knowledge (

consumer’s familiarity and intimacy with the brand ).

CRITERIA FOR CHOOSING EFFECTIVE BRAND

ELEMENTS

1. Memorable ( how easy to recall)

2. Meaningful ( suggestive of the category)

3. Likeable ( visually, verbally and in other ways

likeable )

4. Transferable ( ability to apply to new products )

5. Adaptable ( ability to get updated with time )

6. Protectable ( legally defendable )

MANAGING BRAND EQUITY

1. Brand Reinforcement : constantly trying to

improve the products, services and marketing to

convey what does the brand represent, what core

benefits it gives and what makes it superior in

order to maintain a strong and pleasant

association in the customers minds.

2. Brand Revitalization : breathing new life in to the

brand in response to changing customer tastes

and preferences or in response to emergence of

new competitors / technologies.

BRANDING DECISIONS

1. Individual names ( P&G , HUL )

2. Blanket Family Names ( Tata, GE )

3. Separate Family Names for all products ( Aditya

Birla group : Hindalco, Ultra Tech Cement, Grasim

Suiting )

4. Corporate Name with individual product names (

Honda Accord, Sony Bravia )

5. Co- Branding ( Dell – Intel Inside , Panasonic –

Dolby, Maruti - Suzuki )

6. Brand Extensions ( introducing new products

under existing strong brand names )

BRAND PORTFOLIOS

Multiple Brands are needed to pursue Multiple

Segments.

To increase the shelf presence and to augment

retailer dependence.

Offering an alternative to consumers who would

otherwise shift to other competing brands.

Increasing internal competition

Getting economies of scale / SYNERGY in

advertising, promotional efforts and in distribution

Brand Portfolio may include some FLANKERS,

Stars, Cash Cows, Low End entry level brands (

Traffic Builders ) and some High End Prestige

brands ( Toyota – Lexus )