The Power of Branding - Seminar by Mohan Kumar G
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Transcript of The Power of Branding - Seminar by Mohan Kumar G
THE POWER OF BRANDING
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19-05-2016
A Seminar by
Mohan Kumar G.2nd Sem., M.Tech. (M.E.M.),
S.J.C.E., Mysore.
Plan of PresentationIntroduction to Branding
What ‘a brand is not’?
What ‘a brand is’
The Power of Branding
Why Branding is so Important?
Brand Building Strategies
References
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Introduction to BrandA brand is a name, term, sign, symbol, or design, or a combination of these, that identifies the maker or seller of a product or service.
History of Branding:
The word "brand" derives from the word "brandr" meaning "to
burn" - recalling the practice of producers burning their trade
mark (or brand) onto their products.
The oldest generic brand, in continuous use in India since the
Vedic period is the herbal paste known as Chyawanprash,
consumed for its purported health benefits and attributed to a
revered rishi (or seer) named Chyawan.
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Around 1900, James Walter Thompson published a house ad explaining trademark advertising. This was an early commercial explanation of what we now know as branding. Companies soon adopted slogans, mascots and jingles that began to appear on radio and early television.
By the 1940s, manufacturers began to recognize the way in which consumers were developing relationships with their brands in a social/ psychological sense.
Manufacturers quickly learned to build their brands‘ identity and personality such as youthfulness, fun or luxury. This began the practice we now know as "branding" today, where the consumers buy "the brand" instead of the product.
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What is a Brand?Consumers view a brand as an important part of a product, and branding can add value to a consumer’s purchase. Customers attach meanings to brands and develop brand relationships. As a result, brands have meaning well beyond a product’s physical attributes.
Branding is an effort to give a unique identity to the company’s products and create emotional associations with consumers.
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Consumer Buying Behaviour
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What ‘a Brand is Not’
Logo
AdvertisingBrand
Sponsorships
Public Relations
Marketing
Naming
Product
Brand is rational and emotional
“Brand can drive future sales growth, pricing power and profit margins - strong brand translates into solid
future EPS growth
“I’ve always just been
a Nike person”
“Brand is an intangible asset, but it does have value and can be measured even
though it’s not on the balance sheet”
“I would rather feel bad in Maine then
good anywhere else in the world”
“Wherever you go, there are three icons that everyone knows: Jesus Christ, Pele and
Coca-Cola”
“Companies that have a brand, and are able to
monetize that brand, are tremendously profitable”
RATIONAL EMOTIONAL
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Blind v/s Brand test - Pepsi v/s Coca-Cola
Strong brands generate greater demand
Share
Pric
e share
$
Unbranded curve
Branded curve
In 2011, 35% of U.S. consumers polled said they would pre-order the iPhone 5…
sight and price
unseen
BRAND EQUITY
MODEL OUTCOME
Funds at any stage, are chasing demand so they can execute their strategy.Brand is the conduit between trust and demand for funds at any stage
Growing
Proven
Established
Size (AUM) < $500MStrategic priority: Sourcing investors
FUND STAGE
Size (AUM) $500M - $1B Strategic priority: Closing funds to new investors
DE
MA
ND
TRUST
Size (AUM) > $1B Strategic priority: Seeding additional funds
Why Branding is so Important?
Vs
What a good brand doesStrengthens employees loyalty
Attracts clients/customers
Keeps current relationships strong
Builds confidence
Builds feelings of security and trust
Creates a memorable, positive experience
Creates better choices for the customer
Being distinctive in the market
Improved perceptions of product
Greater loyalty
Less vulnerability to competitive marketing actions
Less vulnerability to crises
Larger margins
More inelastic
Greater trade cooperation
Increase marketing communications effectiveness
Possible licensing opportunities
Advantages of Strong Brand
The Role of BrandsIdentify the maker
Simplify product handling
Organize accounting
Signify quality
Create barriers to entry
Serve as a competitive advantage
Secure price premium
Why Brands are Costly?Because nowadays products & services have
become alike, brands came to distinguish them, HOW?
Branded lifestyle is extended to brand categories, saves cost on company
Creates relationship between brand & consumer that will lead to customer loyalty.
Add emotion and trust
Creates lifestyles that inspire the consumer and affects his lifestyle
The combination of emotions, relationships, lifestyles and values allows brand owners to charge a price premium for their products and services, which otherwise are barely distinguishable from generics
Strategies of Building Great Brands
“The degree of consumer attachment to a brand.”
Recognition
Preference
Insistence
Awareness of name, benefit and package
Is useful, consumer will buy if available…evoked setWill search for; must have
Branding Objective
Creates in the mind of the customers’ expectation - the perception - that there’s no other product or service quite like this branded one!
Brand equity is the added value endowed on products and services, which may be reflected in the way consumers, think, feel and act with respect to the brand.
A brand promise is the marketer’s vision of what the brand must be and do for consumers
Building Brand Equity
CompanyProduct A
Product B
Product PackagingWebsites
Advertisements
A brand is a promise. A promise to achieve certain results, deliver a certain experience, or act in a certain way. A promise that is conveyed by everything people see, hear, touch, taste or smell about your business.
logo
Integrity of Brand
Guess Who Am I ? What does the followingsymbols mean to you?
1) Chicken, An old man, with white hair and beard, name consists of 3
letters? 2) Have a break, have a ....
Brand Recognition / Equity - awareness, loyalty, quality, emotion
Brand Preference / Loyalty - the degree to which customers are committed to further purchases.Ex:- I will always buy Reebok (Brand Insistence)
Brand Awareness -your product is the first that comes to mind in a certain product category.Ex:- Jeans-Levi’s, Walkman - SONY
Brand Association - the link to favourable images, celebrities, geographic regions.Ex:- Coorg Coffee, Mysore Silk
The power of
Brands
Best Global Brands of 2015 as per Interbrand Ranking
Best Global Brands of 2015 as per Interbrand Ranking
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References1. www.google.com
2. https://en.wikipedia.org/wiki/Brand
3. http://interbrand.com/best-brands/best-global-brands/2015/ranking/
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Thank You