Brand Mgt PDF

7/28/2019 Brand Mgt PDF

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Brand

A Brand is: name, term, sign, symbol, design, or combination of these.

Brand: derived from the old Norse wordbrandr which means to burn.

Brand Name Brand mark Trademark Copyright

Vocalized part of

the brand...

Tide, Avon, Chevrolet,

Disneyland,

AMEX

Symbol, design,

color, letters

Pillsbury doughboy,

MGM Lion,

K on Kodak box

Part of the brand

given legal

protection to

brand name

or brand mark

Legal right toreproduce,

publish and sell the

matter and form of a

literary musical or

artistic work

The process of branding encompasses all elements of the brand...


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Brand Introductions and Growth

The level of marketing effort supporting brand introduction depends on ...

Productquality

Growthrate of

themarket

Size of themarket

Low market

concentration

Firmfamiliarity

with themarket

Firmsresources


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Findings on Brand introductions

Managers should expect better results in terms of market share in markets where a

limited number of brands hold a large share which renders such market more

attractive to new brands

A new brand should be supported with a larger effort when introduce into a fast

growing market than when the market is mature

The amount of communication effort used to introduce a brand depends

on only one manufacturer characteristic--the availability of resources

1

2

3


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Why does branding become critical ?

Complex buyingbehaviour

Variety seekingbuying

behaviour

Dissonance reducing

buyingbehaviour

Habitual buying

behaviour

High

Involvement inpurchase Low

Consumer seesdifferences in

brands

Consumer does not

see differences inbrands

In which of these quadrants is branding most critical? And why?


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Branding and its economic sense

brands are created because buyers crave information. They see a huge

range of products that look the same and seem to perform similar . . .

. . . brands offer a route through the confusion. Economist,1994

Branding is manufacturer signaling which can create a separating

equilibrium


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Making marketing sense out of branding

Help Process / RetrieveInformation

Differentiate

Reason to buy

Basis for brandextensions

Summarize a set of facts/specifications that are difficult for the

customer to process/access, and expensive to communicate

Image differentiation

Generates confidence in the product attributes, customer benefits,

increases credibility & confidence

Generates more opportunities in other product categories through

brand extensions


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Strategic question in branding...

What does the consumer see as

the significance of brand?

Who should brand and own the brand?

Salience / strengths

of the brand

The reputation of the firm &Buyer image

The risk could be high price ,

product failure, lack of after sales etc.

What risks does the consumer see?

What information does the consumer

needs?

Reputation , past sales,comparative brand price

and service etc


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Webers law effect on brand awareness and effect of sound brands

JND for brand launch and building consumer acceptance

Weber's Lawstates that the stimulus change needed to reach the differential threshold

(produce a just noticeable difference) is a constantproportion of the starting stimulus

value for any brand to get noticed

Assume that through testing we found that;

1 ounce (ABSOLUTE STIMULUS = 1) had to be addedto a 10-ounce container of liquid soap (STARTINGvalue ~ 10)

before consumers detected a change in its weight.This would yield a constant of proportionality of

K= 1/10 = 0.1, allowing us to predict that:

(1) consumers will not detect a change in the weightof the larger 50-ounce economy bottle of the soapunless at least 5 ounces are added to or removed fromit or

(2) consumers will be able to detect a 3-poundaddition to a 20-pound portable television

Awareness

level

Stimulus weight

1 ounce.5 ounce

Stimulus gets noticed beyond 10%weight of starting value

Sub-optimalstimulus

generation


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How does the mechanics of branding work?

Involvementin thedecision

High

Low

Transactionalcompleteness

HighLow

Awareness

Interest

Desire

Action

A typical communication build up

Awareness is an Advertising basedactivity ...

however, branding focuses onbuilding Interest and Desire to try theproduct


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Strong brands v/s Weak brands

The level of memory recall

Memory

Top of the

mind

Aided recall for the brand

Unaided recall for thebrand

Memory of the brand drives purchase


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How culture values influence purchase decisions

Terminal values

Instrumental

values

Product

class choice

criteria

(criticalproduct

attributes)

Brand

choice

criteria

(critical

brandattributes)

Beliefs and

attitudes about

product class

Beliefs andattitudes about

brand class

Product class

selection

Brand class

selection


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Levels of brand exposure

GlobalNationalLocal / Regional

NamesNames

BrandsBrands

Power BrandsPower Brands

Brand power

Sustained effort will create not just names . . . but brands

Market presence


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Branding concepts - Identity and Image

- Image is on the receivers side.

- The image refers to the manner inwhich the public decodes all thesignals emitted by the brandthrough its products, services and

communication program

- It is a reception concept.

ImageIdentity

- Identity is on the senders side.

- The senders duty is to specify themeaning, intention and vocation of thebrand.

- In brand management terms identityprecedes image.


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BRANDS - Identity and Image

Brand Identity

Sending

Signals

Transmitted

Brand Image

Media Receiving

CompetitionandNoise


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Brand Types

item characterized by plain label, with noclear differentiation

e.g. Xerox, Bisleri

Genericproduct

brand name owned by a manufacturer or otherproducer

e.g. Coca Cola

Manufacturersbrand

brand name placed on products marketed bywholesalers & retailers

e.g. Stop garments from Shoppers Stop

Privatebrand

brand name that identifies several related productse.g. Kissan Anapurna atta , jams , biscuits etc..

(Food category)

Familybrand

unique brand name that identifies a specific offering

within a firms product line and that is not groupedunder a family brand

e.g. Dove soap from HLL

Individualbrand


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Brand power in degree

Brand recognition stage of brand acceptanceat which the consumer knows of a brand but does

not prefer it to competing brands

Brand preference stage of brandacceptance at which the consumer

selects one brand over competing offerings

based on previous experiences with

that brand

Brand insistence stage of brandwhere the customer refuses to

accept any other brand except

the preferred brand

Targetbuyers

(Buyers whostart preferring

a brand)

Targetbuyers

(Buyers whostart preferring

a brand)Brand

championsBrand

champions

Decreasing size of

the market

Marketuniverse

(All potential buyersof the product

Brand recognition

Brand preference

Brand insistence


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Creating Loyalty for the brand

Fence sitters/ neutrals

Passively loyal

Price switchers

Non-consumers

Committed

Varying degrees ofbrand loyalty

Frequent-Buyer Programs,

Customer Club, Database

marketing etc

Enhancing Loyalty


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The Hierarchy of effects model of advertising

Brand loyalty

Beliefreinforcement

Attitudereinforcement

Unawareness

Awareness

Expectations

Trials

Beliefs Attitudes


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Branding realities on loyalty

Managerial Implications Journal of Marketing, Volume 49, Winter 1985

A Brand seeking to improve market position needs to rely heavily oncustomer retention efforts while increasing share of users.

If only a smaller fraction of customers attracted are retained as loyalcustomers, allocation efforts are likely to be more even between

attraction and retention efforts


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Branding realities

Managerial Implications

For Brands with smaller user shares the retained fraction of new customershas to be higher, which necessitates more marketing effort in retention

Research show that large market share business have lower advertisingto sales ratio.

It also implies that as number of brands increases, loyalty levels declinesharply at first and then begin to level off

Journal of Marketing, Volume 49, Winter 1985


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Brand equity affects buyer behavior

Branddeserter

Brandchampion

Non TrierBrandapostle

Targetbuyer

Buys thebrand

Does not buythe brand

Recommends the brand to otherbuyers

YesNo

Strongest branding effects are seen in the brand apostle stage


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Brand Equity

Brand Equity is a set of assets (& liabilities) linked to the brand name & symbol that adds to

(or subtracts from) the value provided by a product

Brand Equity is a set of assets (& liabilities) linked to the brand name & symbol that adds to

(or subtracts from) the value provided by a product

Brand Equity is a set of assets,

thus management of

brand equity involves investment

to create and enlarge these assets

Brand Equity is a set of assets,

thus management of

brand equity involves investment

to create and enlarge these assets

Brand Equity adds value to the

consumer and the firm

Brand Equity adds value to the

consumer and the firm


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Consumer-Based Brand Equity Pyramid

Brand Salience

Consumer-Brand

Resonance

ConsumerJudgement

ConsumerFeelings

BrandPerformance

BrandImagery

4 Intense, Active Loyalty

1 Deep Broad Brand Awareness

2 Points of Difference

3 Positive Accessible Reactions

Co

nsu m

er

Ac

cep

tanc

eC

yc

le


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Consumer-Based Brand Equity Pyramid

Salience

Resonance

Judgement

Feelings

Performance Imagery

LoyaltyAttachment

Community

Engagement

Quality

Credibility

Consideration

Superiority

Warmth, Fun

Excitement,

Security, Social

Approval,

Self-Respect

4 Brand Relationships (WHATAbout You AND ME?)

1 Brand Identity (WHO Are You?)

2 Brand Meaning (WHAT Are You?)

3 Brand Response (WHAT AboutYou?)

User Profiles

Purchase and UsageSituations

Personality & Values

History, Heritage, &Experiences

Brand Characteristics& Secondary Features

Product Reliability,Durability & ServiceabilityService Effectiveness,Efficiency & EmpathyStyle and Design; Price

Category Identification

Needs Satisfied


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How does the brand relate to the customer?

Differentiation

Relevance

Esteem

Knowledge

How distinctive is the brand is in the market place?

Is it meaningful to him or her ? Is it personally appropriate ?

Is the brand held in high regard and considered the best in

its class?

Does the customer understand as to what a brand stands for?

Brand Power = Differentiation x Relevance X Esteem X Knowledge

Brand Equity elements : Luxury car - McKinsey & Co.

Origin


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Internalmakes me feel pampered

Externaltells others that I am

successful

Perceived value

very expensive, but worth it

What the

brand offers

Who the

brand is

OriginEuropean / Japanese

EvolutionWill become the leader in high-

performance machines

ReputationDesign and performance

Emotio

nalB

enefits

Pres

ence

ActivitiesSponsors premier racing

events

Presentation

has distinct logo incorporated intoselect design elements

(e.g.Wheels of the car)

IntangibleAss

ociations

Rational

benefits

Functional

easy in driving

ProcessDealer network that knows myprofile wherever I go(Toyota)

Relationship

Has related affinityprograms I like (Mercedes

Clubs)

Brand

benefits

Brand

identity


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The three variables in the brand anatomy (Young and Rubicam model)

Differentiation X Relevance

= Brand Strength.

>> If there is no point of

difference, a brands value will

be low.

>> Relevance comes next.

Unless a brand is relevant to a

significant segment, it will not

attract a large customer base.

Esteem X Knowledge

= Brand Stature.

>> Esteem combines perceived

quality with perceptions of a

growth or decline in popularity.

>> Knowledge indicates that

the customer not only is aware

of the brand but also

understands what the brand

stands for.

Comparing Esteem & Knowledge:

>> Some brands rank higher in

esteem than in knowledge. Thismeans relatively few people

understand what the brand stands for,

but those who do hold it in

high regard.

>> Conversely a brand may have high

knowledge but low esteem.This means

that more people know what the brand

stands for, but relatively few hold it in

high regard.


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The Y&R grid

Swatch watches

Disney

Sony

Starbucks coffee BayerOldsmobile

BrandDifferentiationand relevance

High

Low

Brand Stature (Knowledge andEsteem)

HighLow


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Inter brand (UK) valuation of brands

Leadership: A brand that leads its market sector is more stable and powerful than thesecond, third, & the fourth place brands

Stability: Long lived brands with identities that have become part of fabric of the market andeven the culture are particularly powerful and valuable

Market : Brands are more valuable when they are in markets with growing or stable sales levelsand a price structure in which successful firms can be profitable

International : Brands that are international are more valuable than national or regional brands,in part because of economies of scale

500 brands were evaluated under these criteria and rated for maximum value underthese criteria . . .


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Aakers Brand equity is based on understanding of the following critical areas ...

The amount a customer will

pay for the brand in

comparison with another

brand offering similar

or fewer benefits.

>> The price premium can

be determined by simply

asking customers how

much more they would

be willing to pay for the

brand

(This is called Dollar Metric)

Satisfaction (or liking)

is a direct measure

of how willing

customers are to

stick to a brand.

Price PremiumCustomer Satisfaction

/ Loyalty

Perceived Quality

directly affects both

ROI and Stock Return.

>> Perceived Quality

can be measured with

scales such as

following.a ) High quality v/s Shoddy quality.

b ) Best in category v/s Worst in category.

c ) Consistent quality v/s Inconsistent Quality

Perceived Quality


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Leadership / Popularity

People want to be

apart of the

bandwagon and

are uneasy

against the flow

It reflects in part

the

number onesyndrome.

A brand canmove head

technologically

LG leader inPlasma TV

Brand Leadership has three key dimensions ...


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Perceived value

Perceived value is mentioned along the followingdimensions ...

Whether the brand proves good value for the money

Whether there is a

reason to buy this

brand over others

Comparativelysuperior brands Winner brands

Loser brands Non differentiatedbrands

Yes

No

YesNo


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Brand Personality provides

links to the brands emotional

and self expressive benefits

as well as a basis for

brand-customer relationship

and differentiation

Brand Personality Organizational Associations

This brand is made by anorganization I would trust

I admire the brand Xorganization

I would be proud (or pleased) to

do business with the brandTATAs as an organization

A k B d i i b d d di f h f ll i i i l


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Brand Awareness

Awareness reflects the presence of the brand in the mind of Customers

Recognition: Have you heard of the Buick Roadmaster.

Recall: What brands of car can you recall ?

Graveyard statistics: recall level of those who recognize the brand.

How much do you recall? Fully or Partially.

Top-of-Mind : the first named brand in a recall task.

Brand dominance : the only brand recalled .

Brand Familiarity : the brand is familiar .

Brand knowledge or salience: you have an opinion about the brand .

A k B d it i b d d t di f th f ll i iti l


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Major brands in the category

who have large equities

usually tend to have large

market shares

Market Share

Marketshare

Brand Equity

Market share = (Brand equity)

Market Price And Distribution Coverage:

Market share can be a particularly deceptive brand equity measure when it increases as a

result of reduced prices or price promotions.Thus it is important to measure the relative market price at which the brand is being sold.


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Brand Extensions and growth of the portfolio

Brand Extensions


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Brand Extensions

Products

Brands

Product Lineextensions

BrandExtensions

Multi brands Single brands

Existing New

Existing

New

The portfolio can leverage itself if it can extend the brand toother categories

Brand extensions are in the following categories


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Brand extensions are in the following categories...

BrandExtensions

Related category(Brand line extensions)

Pure BrandExtensions

Knorr is staple productfrom HLL

It is a mother brand in the

category that coversAtta, Soup etc..

Tatas leveraging theircorporate brand equityin Chemicals, Salt, Cars

etc..

Brand extensions represent an opportunity for firms to use the equity built up in thenames of existing brands in order to enhance marketing productivity

Impact of extensions on equity?


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Impact of extensions on equity?

Brand extensions can affect the brand and its equity in one of the three different ways:

Certain brands exploit the brand capital. The product sells thanks to the brands

contribution. This is the case when the concerned product scarcely differs from

existing market competition.

Certain extensions destroy the brands equity. If the new product introduced underan existing brand has no relationship with the core values of parent brand then the

brand equity can get eroded.

Certain extensions have a neutral effect. Here the brand simply falls in line with

what is expected of the brand.

How does the brand extension logic work ?


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How does the brand extension logic work ?

Category Based Affect Transfer

The affect associated with the parent brand is transferred to the brand extension only when

there is a fit between the parent and the extension categories.

Fit serves as a signal or cue that the consumers use to make inferences about a new product.

Attitude (Consumer opinion)towards the extension was higher when there was a fit between the

extension and the parent product classes along one of the dimensions

Transfer / Complementary products.

Category Based Affect Transfer

The affect associated with the parent brand is transferred to the brand extension only when

there is a fit between the parent and the extension categories.

Fit serves as a signal or cue that the consumers use to make inferences about a new product.

Attitude (Consumer opinion)towards the extension was higher when there was a fit between the

extension and the parent product classes along one of the dimensions

Transfer / Complementary products.

How does the brand extension logic work


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How does the brand extension logic work . . .

Extension evaluation was enhanced only when there was brand

concept consistency and product feature similarity between extension

and parent categories.

The prestige brand concept also seemed to have greater extendibility

to dissimilar product classes than functional brand concepts, when it

offered extensions consistent with its brand concept.

Brand has a positive impact on the success of an extension if the extension is in a similarproduct category.

Brand has a positive impact on the success of an extension if the extension is in a similarproduct category.

Effective

brand

extensions

Good to be early or better to be late ?


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There are several factors that can affect the brand extensions timing of entry decision.

Two reasons for brand extensions to enter late are

4the high-product failure rates in young markets will subject an extensions parent

brand to risk,

and

4extensions may have positioning difficulties in young markets.

Two reasons for brand extensions to extend early are

4the possibility of gaining early mover advantages, and

4the extensions known brand name may reduce the new products chance of failing.

The results indicate that early-entering brand extensions do not perform as well on average as

either early-entering new-name products or late-entering brand extensions.




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This conclusion is based on four findings.

1) the brand extensions were introduced later on average than the new-name products.

2) the early brand extensions had a lower probability of surviving than either the early-entering

new-name products orlate-entering brand extensions.

3) the brand extensions earned higher market shares on average than the new-name products,

4) the extensions obtained smaller market share from entering early than did new-name

products.


The extensions of brandsMarket based possibilities


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Market based possibilities

Brand

extensions

Related(High Fit)

Unrelated(Low Fit)

Esteembrand

Averagebrand

Esteembrand

Averagebrand

Upwardextension

Downwardextension

Upwardextension

Downwardextension

Upwardextension

Downwardextension

Upwardextension

Downwardextension

Extensions aresuccessful

and unsuccessful inall categories

The Effects of Sequential Introduction of Brand Extensions


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The use of established brand names to enter new product categories or classes can substantially reduceintroductory marketing expenses and enhance the prospects of success by helping gain retailer andcustomer acceptance.

Dr Aaker & Dr. Keller on sequential entry

Study aimed at finding out : how is the knowledge about the core brand, and any previousextensionsand the perceptions

about the fit between those products and the proposed extensionsaffect the evaluation of the extensions

Findings:

High quality brands stretch farther than average quality brands.

Successful intervening extensions improved evaluations of a proposed extension for an average quality

core brand:

Unsuccessful intervening extensions decreased evaluations of a proposed extension for a high qualitycore brand.

A successful intervening extension increased evaluations of an average quality core brand, but an

unsuccessful intervening extension did not affect evaluation of the core brand.

Findings:

High quality brands stretch farther than average quality brands.

Successful intervening extensions improved evaluations of a proposed extension for an average quality

core brand:

Unsuccessful intervening extensions decreased evaluations of a proposed extension for a high qualitycore brand.

A successful intervening extension increased evaluations of an average quality core brand, but an

unsuccessful intervening extension did not affect evaluation of the core brand.

The Effects of Sequential Introduction of Brand Extensions


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Dr Aaker & Dr. Keller on sequential entry . ..

Findings

Perceived company credibility and fit appear to mediate the effects of intervening extensions onevaluations of a proposed extension.

The relative similarity of intervening extensions had little differential impact on evaluations of a

proposed extension.

Multiple intervening extensions can have different effects than a single intervening extension.

Intervening extensions of mixed success have effects more like those of a single failed intervening

extension than those of a single successful intervening extension.

An unsuccessful extension does not prevent the firm from backtracking.

Findings

Perceived company credibility and fit appear to mediate the effects of intervening extensions onevaluations of a proposed extension.

The relative similarity of intervening extensions had little differential impact on evaluations of a

proposed extension.

Multiple intervening extensions can have different effects than a single intervening extension.

Intervening extensions of mixed success have effects more like those of a single failed intervening

extension than those of a single successful intervening extension.

An unsuccessful extension does not prevent the firm from backtracking.


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Brand positioning and advertising thrust for share maintenance

BRANDS - Brand Positioning


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Brand Positioning applies to a process of emphasizing the brands distinctiveand motivating attributes in the light of competition.

It refers to what product segment does the brand belong and what is its specific

difference.

It is based on an analysis of response to the following 4 questions

Why?

When? Against Whom?

For Whom?

BRANDS - Brand Positioning


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g

1) Why or for what? What is the specific consumer benefit or exclusive

motivating attribute justifying the brand. e.g. Sony - Innovation

2) For Whom? This indicates a target. e.g.- 7 Up- Teenagers, Canada Dry-

Adults

3)When? Indicates the occasion on which to use the product. e.g. Titan as

gift.

4) Opposed to Whom? Points to the main competition, those brands from

one whom the one aspires to capture the clientele.

e.g.- Pepsi Challenge and the Uncola campaign- 7Up

SOV / SOM effect on branding strategy


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Competitors share

of Voice

Your share of

market

High

High

Low

Low

Find a defensible nicheand decrease

advertising for the brand

Increase advertising anddefend position for brand

Maintain modestadvertising premium tomaintain brand salience

Attack with large SOVpremium to generate

brand effects


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