Introduction To

Brands

Quotes on Brands

“A product is something that is made in a factory. A brand is something that is bought by a customer”

Stephen King

“Marketing is branding. The two concepts one so inextricably linked that it is impossible to separate them”

Al Ries & Laura Ries

“ If you have a brand that you know and trust, it helps you make choices faster, more easily”

Chairman Johnson & Johnson

What is a Brand?

A name, term, sign, symbol, design OR a combinationthat identifies the products/services of one firm and

differentiates them from competitor’s offerings

* A combination of ….. FEATURES What the company or product is

BENEFITS What needs and wants it satisfies for the customers

VALUES Associations the consumer feels he/she has with it

* It is a product Strategy

What is a Brand?

1. Brand Name Attributes of a good Brand Name

- suggest product benefit

- fit the brand image

- easy to pronounce and

recognize as well

- if international, easily translated

Components of a Brand?

2. Brand Symbols Plays a key role in Brand Identification

- McDonald’s golden arch

Components of a Brand?

3. The Package Role of packaging

- identifies and promotes the brand- attracts consumers’ attention and increases

sales- identifies a line of products- communicates product benefits

Packaging has a functional as well as promotional and inspirational role

Components of a Brand?

4. The Warranty

5. Brand Image A brand’s physical characteristics, name,

symbols, package and reputation for service combining to create an overall impression in the consumer’s mind

Components of a Brand?

A Brand is a Living Memory A Brand is a “Genetic Program”

- Key to Understanding how brands work A Brand gives Products their Meaning & Direction

Summary – What is a Brand ?

A Brand is an “Economic” Contract

BMW VOLVO

PerformanceSafety

ABS

The procedure a firm follows in researching, developing and implementing its brands

A successful program based on the concept of singularity

Creating in the mind of the prospect the perception that there is no product on the market quite like your product or brand

What is Branding?

Buyers respond to Branding. They make repeat purchases of the same product/service since they identify the product/service with the supplier

To build brand loyalty

To build brand equity

Why Branding is Important? (Cont’d)

Why Branding is Strategy ? Brands add value Brands can transform markets Brands have market and staying power Brands with strong consumer loyalties tends to

win distribution support more easily

BRAND STRATEGY DECISIONS

Major Brand Strategy Decisions

• Can position brands at any of three levels:– Product attributes• Least desirable;

easily copied.– Product benefits– Beliefs and values• Hits consumers

on a deeper level, touching universal emotions.

Brand Positioning

• Desirable qualities for a brand name include:1.It should suggest product’s benefits and

qualities.2.It should be easy to pronounce,

recognize, and remember.3.It should be distinctive.4.It should be extendable.5.It should translate easily into foreign

languages.6.It should be capable of registration and

legal protection.

Brand Name Selection

• Manufacturer’s brands– Also called national

brands• Private brands– Also called store or

distributor brands• Licensed brands• Co-branding

Carrefour brand products are only

available at Carrefour hypermarket

Brand Sponsorship

Brand Development Strategies

• Line extension: – Introduction of additional items in a

given product category under the same brand name (e.g., new flavors, forms, colors, ingredients, or package sizes).

• Examples are:1.………………2.………………3.………………4.………………

Brand Development-Line Extension

• Brand extension: –Using a successful brand name to

launch a new or modified product in a new category.

– Examples are:1.……………………….2.……………………….3.………………….……

Brand Development – Brand Extension

What is brand extension ?

Brand extension or brand stretching is a marketing strategy in which a firm marketing a product with a well-developed image uses the same brand name in a different product category. The new product is called a spin-off

Why Extend the Brand ? The brand survives & fulfills its intention of

improving its product and adapting to customer expectation

Allows the brand to remain updated Seeking the widest market possible is the

only means of supporting the increasing costs of R & D

Reduce the costs & risks of new product launches

Types of Brand Extension

Extensions to exploit the Brand Capital e.g. Kodak batteries

Extensions to destroy Brand Equity e.g. Levis slacks & Blazers

Extensions that have a neutral effect on brand capitale.g. National Bread Makers

Extensions that help develop and nurture the meaning of the e.g. Brand Nike’s extension into Golf

Factors Contributing to Brand Extension

Global Image of the Brand• Power brands encourage extension• Power products support

Firm’s ability to manufacturer the new product

The “look” of the “new product” alongside existing once• Is it comfortable as part of the range?

Brand Extension Issues1. Critical Strategic Decision2. Cannot be considered without complete knowledge of

the brand’s • Attributes• Personality• Purpose• Core• Contract• Latent Potential

3. Through Quantitative/ Qualitative approach

Perimeters of Brand ExtensionNo-go areas

Extension areas

Outer core

Inner Core• Great taste• Premium priced• Health

No artificial flavoring

Glass Bottles

Concentrated drink

Black currant

Mothers with

children

Sugar free

Plastic Bottles

Enhanced health

Flavors

Carbonated

Ready to

drink

Out of home

Medical positioning

Main-stre am

soft dr ink

Low pr

ice

Non foodsMale

posit

ioning

Aver

age

tast

e

Facilitates New Product Acceptance

Reduces risk perceived by customersIncreases the probability of gaining distribution and trialIncreases efficiency of promotional expendituresReduces costs of introductory and follow-up marketing

programsAvoids cost of developing a new brandAllows for packaging and labeling efficienciesPermits consumer variety-seeking

Provides Feedback Benefits to the Parent Brand and Company

Clarifies brand meaningEnhances the parent brand imageBrings new customers into brand franchise and increase

market coverageRevitalizes the brandPermits subsequent extensions

Advantages of Brand Extensions

Can confuse or frustrate customers

Can encounter retailer resistance Can fail and hurt parent brand

image Can succeed but cannibalize

sales of parent brand Can succeed but diminish

identification with any one category

Can succeed but hurt the image of parent brand

Can dilute brand meaning Can forgo the chance to develop

a new brand

Disadvantages of Brand Extension

• Multibrands: – Marketing of 2 or more similar and

competing products under different and unrelated brands to capture shelf space, get to customers who like to try new brands and saturate the market

• Examples: 1………………………..2………………………..3…………..……………

Brand Development – Multi brands

• New brands: – Developed based on belief that the

power of its existing brand is waning and a new brand name is needed. Also used for products in new product category.

– Examples are:1………………..……….2…………………….…..3……………..………….

Brand Development – New Brands

Come and join us to get more tips and tricks.

Subscribe to our newsletter http://www.asl-solutions.com